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unsatisfactory  may,  by  careful  selection  and
attention,  be  reduced  to  a  minimum,  but  so
long  as  the  world  continues  it  will  be  necessary
to  reckon  upon  a  certain  amount  of  disappointment ­
  in  every  effort  made  to  precisely  calculate
the  future.  This  being  the  case,  it  is  clear  that
if  an  investor  is  to  preserve  his  Capital  intact,
he  must  form  a  Reserve  Fund  to  provide  for
the  contingency  of  disappointment.
On  examining  any  of  the  Geographically
Distributed  Charts  given  in  this  book,  it
will  be  seen  that  many  handsome  profits
which  are  at  one  time  displayed  by  individual ­
  investments  are  swept  away  again
later  on  by  the  inexorable  tidal  movement  of
Stock  Exchange  values.
The  constant  recurrence  of  this  phenomenon
will  naturally  lead  the  investor  to  enquire
whether  it  is  absolutely  essential  to  the  scheme
of  Geographical  Distribution  that  a  handsome
accrued  profit  should  never  be  converted  into
cash,  but  should  be  thus  left  at  the  mercy  of  the
backward  movement,  which  the  charts  will  have
convinced  him  is  certain  to  ensue.
The  answer  to  this  enquiry  is  that  the  rises
which  occur  should  be  utilised  for  forming  a
Reserve  Fund  ;  and,  with  a  Geographically  Distributed ­
  Investment  List,  it  is  always  possible
to  realise  accrued  profits  without  disturbing