Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-08

expert counsel if he wishes to minim-
ize the risk Of losing his case, and
probably money as we'll so when an
Individual enters the realm of specu-
lative investment he should have ac-
cess to the lIeenest and shrewdest
professional advisers.
But the investor who had been
trained TO understand the simple ele-
ments of investments knows by in
stinCt the difference between invest
ment and speculation. The rudimen-
tary principles of investment may
easily be studied sufficiently for prac-
teal purposes by any individual even
without previous experience, by read
ing the newspaper columns devoted
to bonds and high grade shares.
An investor need not he told that
any security which yields a return
Of from s per cent 10 10 per cent at
the price at which 1t is being sold
must carry a certain amount of spec
ulative risk. for he will have learned
that the demand for sound invest
ment is such that no public invest
ment goes a-begging for long, if it
yields 6 per cent, even in these times
Bearing this in mind, very little
thought will bring him TO the con-
Clusion that the shares of a mining
company depending for its profits
upon the continuation of an ore lode,
or Of an oil company depending for
its revenue upon touching shale
ground, are a gamble pure and sim
pie.
Investments begin to rank intui-
lively in a class entirely distinct.
among such values as are secured
upon freehold buildings and similar
properties with solid assets behind
them. Now the just decision as to
which specific investments selected
from among this class are the best,
safest and most remunerative does
not depend upon intuition or upon
learning. IL must be based solely and
entirely upon the facts resulting from
the investigation Of figures and ac-
counts in connection with each Sc
curity; facts and figures that are
analysed by reliable experts who give
their concrete conclusions in i'm
partially conducted journals.
Banks Policy Sound.
The chairman OF the board of di-
rectors of a great banking society,
addressing his colleagues the other
| day, explained;
For some years past il has been
the policy of your board TO spread its
investments over as large an area as
possible. since il considered that in
, this way the greatest protection is
| obtained against temporary market
/ depreciation. A careful investigation
was made during the year into the re-
/ suits Of this policy by a special
/ finance committee Of your board. il
was found that by far the creates
! depreciation had occurred amongst
! high grade securities, but thai the
policy adopted in recent years of in
/ veStlng funds over as large an area
as possible had tended on the average
| toward stability of values. with a
! consequent result Of minimizing de-
| probation over the whole funds In
fact with regard % investments
made during recent years. this policy
/ has been attended with the happiesj
results and the depreciation thereon
/ is remarkably small"
What such an institution as the
Philadelphia Savings Fund Society
with its S1l0Ooo-O01 of deposits
has done FOR generations I'm a large
way. the individual may do in a small
way, thar is, spread his money oyel
as wide a range u approved SeCuri-
ties as possible. Specifically. If you
have $1,000, buy ten $500 bonds Of as
many corporations or States. or mu.
inequalities.
These suggestions are COinCiden'
with the cheaUuess Of the bond mar.
keJ and numerous letters OF inquiry
as 90 the time and conditions of in,
lvestmeut.