Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1943-05-21
Permanent Investment Is
Better In Buying Stocks

nNolu margin accounts or bonl. ho,
ioWihsS. remember that den, LIN.
i,ioie men IMAM germs do. Krro,n,,.e
.ha' ou percent oi the death; ,'n,,r,,
INVESTORS comes from heart disr,se
Z knew how To make money -,
Short-term stock market Operations
l would not be bothering t. wr,I,'
this column today. "'''e
Buying Fer TIC Long-PuIl
! The second method is To h.,y
stocks when they are comp,r.,,i,.,,S'.
cheap, AS at present, be prepared Ia
heep thcm lor from one 10 two years
ana then sell them out al Il guou mo
III. rms sounds very simple and
would work perfectly il. when Sell
: ing OUT these stocks. the investor.
would be content To leave his MONEY
laie IN the bank for Il year or two
lihlil STOCKS again fell to low prices:
Ineh re-lnreSt and do il over agan.
This IS the way most great fortunes
nave been crcatcd in the stock mar
ket. Furthermore, such investors per
form Il real service for their profits.
They purchase stocks when every
one is frightened OF uncertain and
hence they prevent Il complete col
lapse; then they later Sc. "a, when
every one becomes bulliSh and thus
prevent Il reckless boom. For linus
helping Ia steady business rundl-
tons they are fully entitled to t!;r,r
profits.
when buying iur the lonE-pull.
one should diversity and probably
employ some long established invest
ment advisory service for making
$, lcctionS. Purchasing stocks ON tins
long-pull method should be done in
tclllgcnlly. All purchases should be
based upon careful study and re-
search. IL is very sad 10 sec men in
vest quickly and carcleSSiy money
which they have been wears nc
cumulating by hard work and care
iul thrift. The long-pull method IS
legitimate and fairly fuul-prout pro-
vided one sticks To il and does not
temporarily wander over the fence
INTO pastures that appear srccncr at
the moment.
Permanent Investing.
The third method is used by the
man who bus each year Il very di-
NelSiiied list o. securities with the
intention OF never selling r/.csS he
makes purchases and sales by an
approved automatic formula. He is
content 10 RELY on a six percent r.
turn, knowing that money doubles
llSel1 every twelve years under such
conditions. He further has Il religious
faith that the world is constantly
getting better; and he is never dl--
turbed by bad news, low prices ol
even panIcS. He gives much thought
10 studying financial reports in MAX
ing his. selections but, after once
making a purchase, seldom looks al
current stock market prices. He does
not borrow money: he buys Il very
bload list depending on the law of
average for his security, income and
profits. He usually invests moncy
when he has it, irrespective of
whether prices are high or low.
| like to help people who use this
method, but such people must be OF
StClid temperament and be willing To
see prices go down to half the price
paid, believing they will more than
come back. Such investors look only
at company'S property and finan-
cial resources. which usually arc COLI
Stantly lncreaSiI. 2, rather than at
stock market quotations. The latter
neve" bother them. Available StatIs-
tics indicate that in the long run this
third method OF investing for pc
mancncy gives the best results. II is
even said that trustees who make no
sales have Il better record, over the
long term, than those who are al
ways attempting 10 sell the poor
stuff and keep only the best This is
because this latter policy results in
always taking losses and never TAX
ing profits which. if continued long
enough. could be very dangerous TO
these whose funds they hold i'll trust.
Importance of Self Control.
II is not up To me 10 advise in this
column which Of the three methods
is preferable for any one reader. The
answer depends upon the age, tenn
permanent. health, dependents. imam
cial resources and many other fac
| tors in the case of each individual.
This one thing do say. however: de-
eide which of the three methods you