{"product_id":"2940014858267","title":"Simple Principles of Investment","description":"An excerpt from the beginning of:\u003cbr\u003e\u003cbr\u003eCHAPTER I\u003cbr\u003eINTRODUCTORY REMARKS\u003cbr\u003e\u003cbr\u003eIF a wise man works for wages, he naturally demands the highest return obtainable in his particular field of endeavor. If he embarks upon a business venture of his own, he examines with care the various probabilities and possibilities of the proposed enterprise and reflects upon the drawbacks and perplexities which may arise.\u003cbr\u003e\u003cbr\u003eMoney, being exchangeable for all other commodities, is looked upon as the most important of material possessions. Yet the owner of surplus money does not always display the same amount of care, foresight, and intelligence in directing the employment of his funds as in marketing his physical or mental services. He allows his capital to work for long periods at lower than standard wages, or, per contra, he sells its services to incompetent or dishonest employers at very high wages, frequently losing either wages or capital, or both. He engages it in gambling ventures which he calls speculation, and, after it is lost, he designates all speculation as gambling.\u003cbr\u003e\u003cbr\u003eThe contention is frequently heard that by buying only the highest grade securities, resting content with the income derived therefrom, and disregarding all changes in market price, one may escape the annoyances and worries attendant upon continual changes in the form of investment. It is unfortunately the case that this view is fostered by bankers for selfish purposes, by brokers who are anxious to save themselves the trouble of investigations, by advisors who artfully figure that they can make no indefensible error through such advice, and by a host of well-meaning but incompetent nuisances who are willing to give advice on any subject whatsoever. As a matter of fact, this popular fallacy is a most dangerous and pernicious one and results in much loss. It may be set down as an axiom which will bear the test of any analysis that the greatest essential of all investments is constant change. It is not alone the possibility of serious alteration in the status of an individual security, for which one must be constantly on the alert. The greater drawback lies in changes in the fundamental influences which raise or lower the wages of money and which put a premium or a discount on the employment of funds in certain directions. When the price which capital commands rises for any considerable length of time, the prices of all bonds, notes or other instruments having a fixed rate of income must fall. When capital is not fully employed, money rates will fall and the prices of securities having a fixed rate of income will rise. The postulation is as certain as that water will seek its own level. This is a point to which discussion will be directed later, and an endeavor will be made to show, inter alia, that the owners of many securities, including those which have long been considered the soundest investment securities in the world, have seen their fortunes dwindling for years through failure to recognize great but insidious basic changes.\u003cbr\u003e\u003cbr\u003eSome people contend that, so long as the income received on certain securities of high grade is sufficient for all their needs or desires and that so long as these returns are forthcoming, they ask for nothing more. For these fortunate individuals we have no argument. They are the real philosophers, truly content and happy. If civilized society was made up exclusively of these estimable people, the world would first cease to move forward and then begin turning backward. However, those who sincerely entertain such views seldom are possessed of surplus capital except through accident. People who have nothing proclaim that if they had a certain fixed income they would be perfectly satisfied, and they most potently and powerfully believe such to be the case—until they get it.\u003cbr\u003e\u003cbr\u003eIn the preceding comments there is no intention of recommending or upholding the devotion of an undue portion of the precious time alloted to each of us to the worship of Mammon. One may have a reason for attempting to increase his fortune, or at least to prevent its gradual decadence, without possessing the magnificent avarice of a Midas or the miserly desires of a Scrooge. The well-balanced man may, and usually does, find a legitimate outlet for all the money he can reasonably and honestly acquire. Possessed of a clear understanding of the dangers as well as the opportunities of the investment and semi-investment field, he may materially increase his annual income without endangering his principal. The prevalent sophistry that danger to principal necessarily increases in inverse ratio to increased income is another of a long line of popular fallacies, the exploitation of which has permitted shrewd and farsighted men to reap large returns at the expense of their less astute brethren. Nor is essential knowledge always the result of profound thought, exhaustive study, or great experience....","brand":"OGB","offers":[{"title":"Default Title","offer_id":47084060770544,"sku":"2940014858267","price":0.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/2940014858267_p0.jpg?v=1763616057","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/2940014858267","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}