The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-06-28


eliminates all chance or speculation.
and is step in the right direction to
financial independence. The degree Of
success, Of course. depends on carry
ing out the plan without stop or hesi.
tation.
Investing a Business
People are coming to realize more
and more that investing money is a
business in itself. II calls for a special
knowledge of the corporation back Of
the security; its present physical and
financial condition; the volume of busi-
ness done; the demand for its product,
market conditions, etc.
From this it should be seen that
unstudied or guess work methods in
buying securities are dangerous. The
investor is buying more or less blindly,,
and the security of the principal is in
Jeopardy.
The investor is buyer. Securities
are a commodity, the same as mer'
chandise. II the investors knowledge.
or the advice upon which he acts, Is
sound, he buys to advantage; if 1t is
meagre, faulty, or If he is lily advised
he IS apt to buy unwisely.
Efficiency in Investing
Every intelligent man knows what
efficiency" means. He knows that
efficiency Is the application, without
stint or reserve, of competent know
ledge; that to be efficient is TO be-
able to do the thing In hand we'll, care.
fully, inteiligently, properly; to pro-
duce the best possible results.
To the small investor, the tempta'
ton TO ignore the safety first prin-
ciple is strong. Hence, the great num-
bers Of investors who lose their money
on what they were led to believe Was
"a good thing" but which in reality
was just plain gambling with the
odds, In most cases, hopelessly against
them.
The desire to make money hand
over fist" is as natural as the act OF
breathing. People are easily influ-
enced by stories Of great wealth from
small investments. The willy stick.
promoter knows the psychology Of the
human mind. Therefore, when a new
Corporation" Is to be financed that
will loosen the flood-gates of wealth.,
records of Standard Oil, International
Mercantile Marine, American Tele-
phone and Telegraph, and host Of
other companies that have n,dde for.
tunes for their stockholders, are tabu.
lated, with the usual glittering com.
ments on their earnings on the origi.
nal investment.
Buying Nothing For Something
AS long as society exists and men
have to struggle Tor living. fraud
will continue to be practised. Glitter
ing propositions will continue 10 lure
the savings of those who want to grow
rich over night. And because Of this
unrelenting attempt 10 sell nothing for
something, 1t is necessary that the
prospective investor be on his guard
all the time,
The Post Office Department is doing
q good work in closing up dishonest
concerns who are swindling>the public
yet the government is unable TO reach
many of them.
Several states have iegislated to pro
tect the savings Of their citizens. They
have enacted blue sky" laws which
make 1t more or less difficult to sci
questionable stock. Yet, in spite OF al
this, worthless securities continue u
be bought. The gambling instinct 81
strong. Men are willing to take {
chance" with the elusive hope OF max
ing lucky strike.
The Investors Problem
The investors problem, then, ls al
ways to obtain the greatest degree o
safety and largest earning power con
sistent with sound business principles
To him the field Of finance is mys
terious, and he may either be ultr;
conservative, and miss many splendid
investment.opportuni OF be ignor
ant Of values and conditions and los
money.
The man OF moderate means has tn
same strong desire to make his SUI
plus funds grow rapidly aa has tn
man OF unlimited means. Heretofore
he has had only three avenues opel
10 him, Wiz
/. The bank paying three or fou
per cent.
|, 2. Buying stocks on margin, will
the odds almost hopelessly against him
, 8. Putting money In wildly exploit
ed propositions that seldom every ge
beyond the stock.selling stage.
The appeal to the prospective in
vestor from perfectly legitimate sour
ces is so highly competitive, and FIRE
quently so complex. that compartive
. ly few venture into this rich field.
Three Glasses OF Investors
Investors In listed securities are IL
vided into three classes as follows;
/. The gambler. He buys stocks oi
margins today with the idea OF sellini
tomorrow or next week and taking hi
profit on rising market. He never &C
tually owns the stock he margins. /
the stock he buys on this basis goe
up, he makes money. IL II goes down
he must put up additional cash TO fur
ther margin, or protect his purchase
Too often he loses all he invests"
Should a man go short" that Il
sell on q falling market with the idel
OF buying In at still lower price Il
order TO make delivery on what he ha
) already sold, he may guss wrong an
, meet the same fate as the man VIII
! takes the other end OF the gamble.
, 2. The speculator. This Is the elias
, that buys stocks outright with the ide
OF selling them at profit fe,
: weeks or months later. The degree Q
safety Is higher here. for these peopl
have avoided the margin feature. In
, vcstors In this class usually make
superficial study OF the stock merke,
; then try TO guess themselves with III
insiders" Their ability at guessing
the dangerous factor. However. the