The Wilmington morning star., 1945-02-23
|BABS0N STRESSES
TEN STOCK TYPES
Bv ROGER BABSON

BABSON PARK, Mass, Gu. ~
This week, let me talk on the
necessity of dividing up your IN
vastments in order to get safety
In other words, - don't put toe
many eggs in any one basket. II
YOU have $4,000 invested or to
invest. divide it among ten groups
of securities. The following groups
and ideas are not the only ones
to consider but they serve as IL
Illustrations.
~ Manufacturing: Select some
company like a paper, textile or
oil company which is in ere
peat" business rather than COM
pany dealing in equipment which
lasts a lifetime. Thus, beware of
many shipbuilding, aviation or
machines tools at this time.
ca Public utilities: Select the
stock of some good company
which is being eliminated by the
Securities Exchange Commits
sion and which should liquidate for
considerably more than the pres
sent market price. Stocks which
fulfill such requirements may be
immune from stock market sink.
ing spells.
| 60 Merchandise stocks: Visit
the variety chain stores in your
city. Pick out the two or three
(which you like the best. Ask your
local banker which of these have
their stock listed on the New York
Stock Exchange. Buy the one
which yields you the most annual
income.
a. Fire insurance stocks: Look
at your insurance policies and buy
the stock of the company which
has been doing business the long
est number of years. l also like
good casualty stocks. Both type
combine ownership of a business
and participation in a large list
of good investments.
(5) Bank stocks: Buy either the
stock of the local bank with which
YOU deal or else buy the stock OF
the New York City bank which
: your local bank uses as cor
respondent. Besides earning mon.
ey on services rendered, most
banks now earn on large Govern.
ment bond holdings.
co Building stocks: T h e S e
should be good although they al
ready are selling rather high due
to the big building boom expected
after the war. Choose one manu-.
featuring building materials d
one making house furnishings.
also like the cement stocks and
certain of the steels.
Cd Chemical stocks: These al.
so are selling pretty high now;
but we are going into chemical
age and many miracles are ahead
of us. For instance, Dow Chemical
is making products from sea-wa.
ter! Remember that while our ag.
ricultural soils are getting poorer
every year, the ocean is constant.
ly getting richer in chemicals ano
minerals.
90 Transportation stocks: Prob
ably everyone should own a little
stock of some well established au.
tomobile pany. Certainly
these should be safer to hold thar
most railroad stocks. I think near.
ly all railroads will suffer in the
postwar period. Airplane transpor.
tation stocks are now fairly hioh
90 Mining stocks: This may moi
be the time to buy any mining
i stocks; but if so, one should buy
the stock of company which is
also well established in the fabri
eating end.
| Q0) Food stocks: This group in.
cludes the baking companies, can
ming companies and other food pro
cessing campauies. Personally,
would rather buy the stock o
some good grocery chain than til
myself down to any one of tn,
manufacturers. If, however, vol
want a strictly food stock,
suppose one having both "neces
sity' and luxury" foods would b,
my choice.
Please remember I give tn,
above simply as illustrations
there are other good groups ant
ideas which 1 have not included
In this great country there ar,
many good companies. But what
III ever yoI1 hI1v di,,o,.;f,