Milford chronicle., 1925-05-08
The ROAD TO
SAFE INVESTMENTS
BY Frederick r. FentOn, Secretary,
Investment Bankers Associa-
tiOn of America.

tiOn OF America.
That estimable institution, tn
Better Business Bureau of New Yor
has a worthy slogan for every in
vestor. 1t is, Before You Invest
Investigate.
Excellent! Investigate? Surely
But investigate what? The invest
ment security?
No. Investigate the man, the firm
or investment banking house tina
sells the security. Find out if it i
an established, reputable house
Find out if it has an unimpeachabl
record for honesty. Find out If l
is a capable, experienced house
wholly competent to, judge securit.
values and thus able to select sount
investments for the different need
Of different customers.
That is the one certain road tt
safe. profitable investments.
To investigate one or more in
vestment securities in Impractical
BILE. if not impossible and downright
= unsafe. for the average investor
First, it requires a great deal o.
time. which the average man or Wo
man cannot give from other Occupa'
tions. Second, it is expensive to in
vestigate accurately and it requires
other facilities, such as expert ac-
cOuntants, special attorneys, engl-
neers, and other specialists. Third
after all the necessary information
has been gathered on a given in
vestment security, it requires an ex-
perienced investment banker to
weigh it accurately and determine
the value of the security.
In making safe investments the
situation is exactly parallel to buy
ing a can of sewing machine oil, or
automobile lubricants, a bucket OF
paint or a virgin wool sweater. You
do not assume the difficult, techni-
cal work if the oil chemist when you
Investigate" sewing machine oil, or
automobile lubricants, and analyZe
the oil. You do not try to perform
the work of a paint chemist when
YOU buy paint. You do not endeaVor
to become a textile expert, qualified
to tell worked over-woOl from Vir-
gin wool when you buy sweater.
Of course not. 1t is impossible in
this highly specialized age for one
man or woman to be an expert in
the several hundred highly-special-
lied trades, callings and professions
intimately involved with every hour
of existence. You go to an estab-
lished, reputable dealer to buy oil
or paint. You go to an honest, cap
able merchant to buy good clothes,
free from shoddy and dishonest sub
stitutes. You go to an honest, cap
able doctor, lawyer, for their SER
vices, because you cannot be an oil
chemist, a textile expert, a doctor
and a lawyer. You must depend on
honest specialists.
To make safe investments of the
smallest to the largest sums, like
wise, the services of a specialists
are required. 1t is the investment
bankers business to supply that SER
vice. He can advise dependably
what investments to buy, whether it
shall be life insurance, a savings ac-
count, a home, good bonds, or possi-
bly, other real estate, which is spec
ulative, or common or preferred
stocks in well-managed companies
of good earning records. Usually he
will advise bonds because high
class bonds are the best form of in
vestment security yet devised by
man.
But, you ask, how can the average
man or woman without financial
connections determine which bond
dealer is honest and which is not?
The most unscrupulous promoters
and the bucketshops have offices as
we'll equipped and as impressive as
the honest houses They initiate
perfectly the appearance of the rep
utable dealer or house. How can
you Investigate"
In every profession, trade and
business, there are organizations
work for the best and highest de-
velopment of the calling. Men are
known by the company they keep;
so are bond houses, and brokers.
Find what organizations your pros
pective dealer or broker is affiliated
with. Ask the banks, several of
them. Keep on asking until you are
satisfied. Ask any member of the
Investment Bankers Association of
America. That is not difficult and
IN snort while the inexperienced
investor will have gathered convinc-
ing information as to whom he may
go to learn the truth as to the SAT-
est and best way to invest money.
do not mean to say that all mem
bers of any laudable, worthy asso-
ciaton or league are. 100 per cent
pure, or that outside such organiza-
tiOns there are not most excellent
and worthy concerns. But within
the established, worthy business
and vocational associations you will
find almost always a preponderant
number of the best, the most repre-
sentative and most reliable men or
firms in the business. People lose
money in investments very largely
because they listen to frauds and
bucketshop operators, or to honest,
persons. Go to an
honest investment banker. He can
and will tell you the truth. You
will make money thereby.
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