In this book we are going to explore a number of different types of investment, but we are going to concentrate on investments, which have one characteristic: high yield consistent with the preservation of the capital invested. This definition means that investment in a new corporation that is just starting out is omitted as is investment in partnerships as a partner and in individual proprietorships whether they be shoe shine parlors or stock brokerage firms. This latter type of investment does not stress the preservation of your capital down to the last dollar right from the time that dollar is invested. Granted it may work out wonderfully, and a dollar invested may conceivably grow to two or five or even $100, but when funds are invested in such a way they are spent for sales promotion or for a truck or machinery or for anything. Your dollar or fund of dollars thus cannot be returned since it has been put into forms of assets, which it is hoped will start earning and eventually build up a fund of dollars to return to the investors.

We are talking about investments, which right from the day you invest your money have as goals the preservation of every dollar and the payment of a re turn on that dollar. As soon as the investment is made, wheels are started rolling to return your investment to you. There is no particular virtue in this type in vestment as against the kind that takes your funds and puts them into a peanut stand which you and your partner will operate. It is simply a different type of investment. If you put your funds into a building and loan association you know with reasonable certainty that they will be returned to you, and it is one of the main purposes of the association to keep your money intact at all times. Investment - Read More.