Evening star., 1924-11-14

'Note-- ms is the frst article in series
WHich sets ont in common sense terms some
"f the primary principles OF investing. in Il
way which the average citizen will hnd use
frl in solving his own problems and in pro
tecting himself against some Of the pitfalls
which snare Mninformed and careless men
and women. The second article will appear
IN an early isBue.)
The attainment of small fortune
during life lies, to a greater degree
than We like to admit, within our
selves. To save and to build upon
what we save. year after year. no
matter how small the amount, is
largely matter of character That
brings modest fortune within the
reach of most men. Small savings
soundly invested and reinvested, with
the accumulations of interest or dfvi-
dends regularly reinvested, soon
grow into large savings.
What $50 VIII DO.
That is the principle by which saw
ings banks grow. 1t is the principle
upon which investors should operate
The man who deposits $50 without
interest monthly over a period of
40 years will have saved. by the end
Of the fortieth year, $4,000. 1t is
something, then, just TO save regu-
larly. The $50, however. invested
safely with interest Of 8 per cent,
refnvested every six months, IL al
lowed to accumulate over a 40-year
period. will grow to S74.500. The
same relative opportunity is open to
the man who can save only $40
monthly. To save, to invest, to re-
invest-these should be ambitions
made real by every man who earns.
Must Stick to Program.
To get ahead materially man
and, except as he can stiffen the re-
quirements, adhere to II as he would
| to a principle of life. What the pro-
gram is depends upon circumstances
1t Will not be the same for all men.
The two primary things to consider
| in making up program are % the
amount that should reasonably be set
aside each month. taking into account
the monthly income and the nature Of
family responsibilities and CD the
kinds of investment most appropriate
for the purposes in mind, taking into
account the future uses 10 which the
funds may possibly be turned.
Put First 81 900 In Bank.
Assuming that a man has ade-
Quately protected his family by in
| surance, for example, he might rea-
sonably make it part of his invest
ment program to put his savings in a
savings bank until he gets his hrSt
81 l,0O0 His second $1,000 may well go
into building and loan association
shares, particularly II home-owner-
ship appears to be a logical step for
him. His third $1,000 may be put into
United States Government, State or
municipal bonds. His fourth $1,000
could appropriately be put into gilt
edged railroad bonds, gilt-edged pub
lie utility bonds or gilt-edged rail-
road or public utility preferred
stocks, or bank stock. or into guar
anteed first mortgage real estate
| bonds. taking great care in these Sc
| lections. His fifth $1,000 may be in
vested in thoroughly sound indus
trial bonds or preferred stocks. FL
nally, the sixth 81. 900 for him who
| feels justified at this stage in increas-
| ing the risk may be put into divi-
dend-paying railroad or public utility
| common stocks OF established repu-
! tation.
The man who works out some such
| plan as this may learn a great deal
about investments and without losing
| his money. What is more, he Will
acquire habits necessary for the
| building of his own small fortune.
Copyright, 1924