Salt Lake Telegram | 1923-02-25 | Page 25 | Investments Vs. Speculations

p INVESTMENT MO vs SPECULATIONS w B B 0 UD Ill Advised Speculation n Wipes Out Millions in Savings Annually 4 Safe Investments Mean Future Independence Meaning of Term Loan I By L. L S. S Trigg T if old adage to the tho ete effect t that 13 Its not what you make bu but what you L. L eave that counts Is tru true aa as far tar as aa It St goes goes but but there thera should have havo avo been aided added and ancl what you do with It ft after you save It it For every year the tho life Ute saving sa of ot thousands o of thrifty hard hard- men and women are swept away through ugh Ill advised speculation Tho loss to the country In unsound schemes has haH been variously a estimated rom to annually Tho tragedies which this tha hug huge sum eum covers are legion money accumulated at the sacrifice of ot most of t luxuries and pleasures and representing years of ot toll I la Ie given to the misguided or more moro often otten promoter one being almost as bad as aa thit oth r who pictures In glowing terms the prospect of ot Immense profits Nh ch h are alO practically certain And all nil of ot these millions of at dollars if It prop- prop fl in the tho development ot Of legitimate business would add Immeasurably ubly to the prosperity and general welfare of ot the country Night gly-by-Night Stock Salesman nE are two fundamental reasons why the night fly stock salesman to thrive One Is the desire of ot the average everag man to get some some- ug for nothing to nothing to make a a. killing that will put him on easy street for foron forone on one once and for tor all alt The answer to this was printed hero here last week Anyone who h hO can save even a small proportion of ot his hia Income and will invest it St safely at a reasonable rate of ot Interest can acquire lre an Independent Income And Ana n this Is 18 the only sure and proven path to easy street IE The Tho other reason is the lack of ot knowledge on th the part of ot Individuals generally as to Just what constitutes Investment as distinguished from tram speculation spec spec- ul Uon Most people who have saved money would not flOt risk It willingly and andEre Ere ri led to speculate usually through the belief that they are making a aBare afo ai i Bare to fo investment There are plenty of ot safe sate Investments available and The In ln publishing the series of ot articles of ot which this Is the second hopes hiOs to aid Its readers in separating the good from the bad jat at Is an Investment E first step In this direction is to determine Just what an Investment is recognized authority stat states this in the following manner Speculation and Investment are aro actuated by the same motive motive- desire for gain and the difference nce between them is the difference in th the degree of ot risk willing to be assumed Th chiC chief requisite of ot a perfect investment Is a maximum m of security for the invested principal 1 It If It is certain humanly that the tho principal will be returned when demanded or at a time jime agreed upon then the principal is secure Now there is one and only one word In the language to the employment of ot funds in accord with these requirements 1 Is the tho word loan I Tho moment we aro are confronted with the word loan we realize how how few tew In truth are the classes of ot Investment t that fulfill ments elt Form of a Loan rn IE words of at this author merit the serious thought of at those who are not versed in Investments Amplifying the tho principle states above ho he points that there thero are good loans Joans and bad loans but that a a. loan the tho payment which both as to Interest and principal Is la adequately assured either by or otherwise Is the truest form of ot Investment Viewed from this standpoint It Is plain that a purchase of ot real reat estate Ig example Is hot not a pure Inv Investment as thero there Is no assurance that the theor I yer cr or will be able to recover the amount Invested Stocks as a class must pla placed d in the same category as the principal amount Is seldom payable O the purchaser must rely upon the market price to realize reaUze upon the 7 0 These are aro generalities of at course courso and specific details wl will 1 be dealt with Li subsequent articles It is the tho purpose of ot this one to emphasize the tho fact tact 7 t try evry i rv class of ot pure investment such as bonds and mortgages and bank its is safer r than any class of ot speculation such as stocks real estate commodities 7 1 7