The Intelligent Investor, Chapter 2.
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EnglishVoice Age
Young Adult (18-35)Accents
North American (General)Transcript
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Chapter two. The investor and inflation, inflation and the fight against it have been very much in the public's mind in recent years. The shrinkage in the purchasing power of the dollar in the past, and particularly the fear of a serious failure decline in the future have greatly influenced our thinking of Wall Street. It is clear that those with a fixed dollar income will suffer when the cost of living advances and the same applies to a fixed dollar amount. Holders of stocks, on the other end of the possibility that a loss of the dollars purchasing power may be offset by the advances in their dividends and the prices of their shares. On the basis of these undeniable facts, many financial and authorities have concluded that bonds are inherently undesirable form of investment and consequently, common stocks are, by their very nature, more desirable investments in bonds. We have heard of charitable institutions being advised of their portfolios should consist of 100% of stocks and 0% of bonds. This is quite a reversal from the earlier days when the trust investments were restricted to law toe high grade bonds