Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-03-01
PLEADS FOR MORE
VARIED INVESTING
Babson Finds Money Not
Only Reserve Which Every
Family Should Have.
BY ROGER w. BABSON.

L
For the past few weeks have been
In Florida. Now, Florida is all right.
1t is fundamentally sound: its popula-
tion and production will steadily In.
crease for many years to come, and
real values will continue to increase
correspondingly. Those who go to
Florida with the right spirit should
not only make money, but, what Is
fai more important, should also live
longer and more happily. This latter
thought leads me to say something
this week on Reserves and the Most
Important Investment"
Different Forms of Investment.
First, it should be realized that an
investment simply means reserve.
How this reserve is used determines
whether you are a Speculator, buS1-
ness man, or merely a lender OF
money. II We. as individuals, would
talk more of our reserves instead OF
our stocks, bonds, and other invest
ments," we would fare much better.
Bankers and many corporations use
this term reserve" properly; but 1t
is seldom properly used by the aver
age man. Second. it must be admitted
by all sensible people that every man
should form reasonable reserves.
This is a basic instinct among ami
mails and one of the first lessons
taught In history. Note the seven
year famine in Egypt when Joseph
saved the nation by his foresight In
providing reserves Of grain and other
toodstuffs. 1t Is said by some psychol-
ogists that the fundamental difference
between a civilized and uncivilized
race is their respective different atti-
tudes toward storing up reserves.
The point, however, which | wish
10 make today is this: A financial re-
serve Is only one form of reserve and
surely is not the most important. It
important that he should have a re-
serve of money. but 1t is far more
important that she should have a re
serve OF faith, health and content
nlent. By the latter I do not mean
dissatisfaction, but rather thank
fulness. We business men are doing
right in storing up financial reserves,
but we gain nothing thereby If we
correspondingly deplete our physical
and spiritual reserves. We merely
are ''robbing Peter to pay Paul. and
both lose. This is what many are do
ing In Florida. Here Is a State which
offers peace, health and happiness TO
all who go there, and yet those great
gifts are being trampled on cont!nu.
ally in the quest for land, money and
subdivisions. Really the situation is
most pitiful. and yet the same relative
conditions probably exist in every
other State in the Union.
Diversified Investments Vital.
We hear much in conservative |
banking circles about the need Of "di |
versifying our investments" Such |
advice means that one should not in
vest too much in any one company |
and, moreover. should buy some rail |
road bonds some public utility bonds, |
some industrial bonds and some rea: I
estate bonds. Diversification also |
means to many business men that |
hey should put only a portion of |
their money-say, one-third, into |
bonds. dividing the other two.thtrds |
between real estate and stocks.
This custom has developed since |
the German collapse when bondhold.
ers lost everything, while many stock. |
holders made fortunes Diversified.
ton should further mean that a man |
should not devote all his time 20 stor. |
ing up financial reserve, but should |
also give attention to the storing I'D |
OF spiritual, physical and intellectual |
reserves.
Mans Earning Capacity.
THE building I'D Of financial re. |
serves is largely dependent upon an |
individuals earning capacity. Most
every one can earn a living but there |
are FEWER who can successfully build !
dependable financial reserve. This |
ia where the Intangible reserves !
come In. The Intangible reserves of |
Iaith and integrity. health and intel |
lect are not just for use In later life |
Tor rainy day, as they say in New |
england. They have uses of an i'm. |
plediate and practical nature. Psychol. !
oSlsts nave definitely shown that orr !
health is affected by our worries and |
ears-'a condition produced by a lack |
or the spiritual reserves of faith and |
integrity. We all know how depend |
ent our earning capacity is on our |
health and intellect. Thus l want to |
mako 1t clear that these Intangible |
reserves-these spiritual, physical and
intellectual reservee-together With
our material reserves, are ali hound
up together and dependent one on the
other. VIA N''o
What Real Wealth Includes.
True success and real wealth de.
pends upon having a normal amount
OF al these reserves. The man who
! thinks of wealth as meaning only a
financial reserve Is absolutely wrong.
ne youth who wants true sJccess
must build up spiritual and nhvsicsI 1
eserves as well as intellectual and 1
nnancial reserves. 1t is just as i'm. /
portant to attend church and visit |
gym as to attend college and build IN 4
2 bank account. Parents who are
striving to accumulate money for
their children should especially re.
member this. 1t is good to be able
70 leave our children fair amount 4
OF money: but it is far more inpor
lant that they have faith and integ-
tlty, health and good education.
Now FOR secret in conclusion: Sew.
erai months ago I was very i'll for a
rev days-came pretty near passing
put. Let me tell you that my stocks, II
ponds and land did not count for much Il
at that time. The one rope which I
could grasp was the little faith which Il
mad. ! grant It was a very slender
rope and pretty stiff from lack of Use.
but that faith which was taught me
years ago by praying father and
mother and nurtured in the little
country church was my one big pos
session. 1t was then that / resolved
o write on these Intangible reserves II
however much l might be criticized H
or preaching-moreover I have writ
-en this from my heart.
Business Above Normal.
One more word: Many complain
Today because It IL so hard to interest
young people-in
many OF the deeper things OF life
which seem so funda mental to us
older ones. Is not the trouble largely
With US, that we have been stressing 1
material things. and have not shown
ne relative values OF spiritual, phys.
cal. intellectual and financial re-
serves?
Therefore. let us all diversity our