The Wilmington morning star., 1945-04-13
INVESTORS URGED
TO Use CAUTION
Nv ROGER BABsON

12-"Mr. Babson, I have sold
my business, where can I invest
the proeeeds?" my wife and I
are getting along in years, in what
can we invest our money 50 that
we will be assured of moderate
income for the rest Of Our Gves?'
II have just inherited $1,000, how
can l double this money quickly?'
These questions are typical OF the
many asked me from week-to-
week. Behind each lies the instinc-
tive desire Of all human beings to-
self-protection.
Before entering upon an impor-
tant venture-and certainly before
buying any stock-it is imperative
that you know yourself. Self-con-
troll, patience and courage are es-
sential to success. Have you the
self-control to follow a strict in
vestment policy? Do rumors and
minor fluctuations fail to sway
you? Have you the patience to
hold your funds liquid until real
bargain comes your way? Do you
resist jumping into bull marke.
In the hope of scalping few
points profit On the advances?
Have you the courage to buy
when the news is pessimistic and
everyone about you is selling?
Will vol, sell when stocks are on
the upgrade and everybody is
talking about the new highs to be
reached?
If you can answer eyes" to
each of these questions and if you
have some extra money to invest.
you have the attributes for be-
coming Successful. Then you can
determine your own particular
needs and select diversified
group of securities which will meet
these requirements. After you
have purchased your securities,
do not be concerned over day-to-
day fluctuations. Avoid jumping
from one stock to another in the
hope of picking a few points pro-
lit here and there. Do not follow
the crowd. Always bear in mind
that in finance the herd instinct
lis fatal.
Before buying any stock you
should decide what you expect Of
it. In the case Of the man who has
sold his business, the chances are
that he will want to own stocks
that will appreciate in value
Therefore, he would do well to
buy into a young industry - pos
sibly television, plastics or cleo
tronics. To the elderly couple who
want income, I suggest Series G"
Government Bonds and the secur-
tiles of well-established companies
with good dividend record and
a promising future. To the young
person who has inherited the S.
900, I say, The stock market is
no royal road to easy money. A
horse race would be just as good
a bet and might prove more ex-
citing!"
The investor should carefully;
study the trend of the market and
the outlook for the industry into
which he plans to buy. This shows
when to buy. He should next ana
lyze the various companies in that
industry. He will then select that
company which is making the most
progress This company need not
necessarily be the largest in its
field nor, perhaps, the oldest, but
it must be well managed and &C
tive. Pay particular attention TO
the personnel. Remember that the
future OF every company will de-
pend upon the character of the
individuals who control and man.
age it.
Approach the stock market in
an intelligent manner. Follow the
lead of successful institutions and
buy the securities they buy. You
can determine this by studying re-
ports of insurance companies.
Learn to swim before venturing
into deep water and above all be
wary of tips from well-meaning
friends. Even in the rare in
stances where such a tip makes
good Temporarily, it usually leads
to loss in the end because it is
based OF cphemeral rather than
fundamental! factors. The success
full investor must know what to
buy or sell. as well as when to
buy or sell.
--V
Raisin sauce is good served with
hot Or cnld hnilad tono11o