Common stocks as long term investments / Edgar Lawrence Smith.

Format:

Book

Author/Creator:

Smith, Edgar Lawrence, 1882-1971, author.

Language:

English

Subjects (All):

Stocks.

Bonds.

Investments.

Physical Description:

1 online resource (110 pages)

Place of Publication:

[Place of publication not identified] : Pickle Partners Publishing, [2015]

Summary:

Edgar Lawrence Smith, (1882-1971) was an economist, investment manager and author of the influential book "Common Stocks as Long Term Investments", which promoted the then-surprising idea that stocks excel bonds in long-term yield.. He worked in banking and other financial endeavors in the years after college, then signed on in 1922 as an adviser to the brokerage firm Low, Dixon & Company. While there, he later recounted in his Harvard class's 50th reunion yearbook, "I tried to write a pamphlet on why bonds were the best form of long term investment. But supporting evidence for this thesis could not be found." This discovery led to the 1924 publication of "Common Stocks as Long Term Investments." The book was widely reviewed and praised, and became a key intellectual support for the 1920s stock market boom. Its success enabled Smith to launch a mutual fund firm, "Investment Managers Company." It also garnered him an invitation from the economist John Maynard Keynes, who had favorably reviewed the book in "The Nation", to join the Royal Economic Society. The Wall Street Crash of 1929 brought a turn in Smith's fortunes.-Print Ed.

Contents:

Intro

TABLE OF CONTENTS

INTRODUCTION

ACKNOWLEDGEMENTS

CHAPTER I-BONDS AND THE DOLLAR

THE DOLLAR

OTHER MEASURES ARE FIXED

IMPORTANT TO INVESTORS

BANKS AND INSURANCE COMPANIES

CHAPTER II-BONDS AND COMMON STOCKS

NATURE OF SECURITY

SAFE BONDS IMPLY SAFE STOCKS

WHERE DOES THIS REASONING LEAD US?

CHAPTER III-COMPARISON BETWEEN COMMON STOCKS AND BONDS, 1901-1922

METHOD OF SELECTION

RESEARCH

IMPORTANCE OF TESTS

TEST NO. 1―1901-1922

TEST NO. 2―1901-1922

TEST NO. 3―1901-1922

THE FLUCTUATING DOLLAR APPLIED TO TEST NO. 3―1901-1922

CHAPTER IV-COMPARISON BETWEEN COMMON STOCKS AND BONDS, 1866-1899

APPRECIATING DOLLARS

TEST No. 4―1880-1899

THE FLUCTUATING DOLLAR APPLIED TO TEST NO. 4―1880-1899

TEST No. 5―1866-1885

1866 SIMILAR TO 1923

CHAPTER V-FINANCIAL CONDITIONS, 1866-1885

STOCK PRICES

COMMERCIAL PAPER

PANIC OF 1873

NEAR PANIC OF 1884

CHAPTER VI-ADDITIONAL COMPARISONS BETWEEN COMMON STOCKS AND BONDS

TEST NO. 6, BOSTON―1866-1885

TEST NO. 7-1892-1911

TEST NO. 8―1906-1922

THE LARGEST COMPANIES

CHAPTER VII-RAILROAD STOCKS, 1901-1922

TEST NO. 9―1901-1922

TEST NO. 10―1901-1922

TEST NO. 11―1901-1922

CHAPTER VIII-A NEW STOCK MARKET CHART, 1837-1923

MANY CHARTS ARE MISLEADING

COMMON STOCKS, 1837-1923

CONSTRUCTION OF CHART No. 6

CHAPTER IX-LAW OF INCREASING COMMON STOCK VALUES AND INCOME RETURN

THE FACTOR FAVORING COMMON STOCKS

LAW OF INCREASING STOCK VALUES AND INCOME RETURN

CHAPTER X-TIME HAZARD IN THE PURCHASE OF COMMON STOCKS

CHAPTER XI-A FEW GENERALITIES

THE HUMAN FACTOR

DIFFICULT TO HOLD HIGH YIELD BONDS

GERMANY

STRONG FORCES AGAINST DEFLATION

COMMON STOCKS TO-DAY

INCREASE IN NUMBER OF STOCKHOLDERS

INCREASING RESPONSIBILITY

ECONOMICS, A GUIDE TO INVESTMENT.

CHAPTER XII-FLUCTUATIONS IN BOND VALUES

BONDS 1902 TO 1920

BONDS 1902-1913

PROFITS IN BONDS 1866-1885

CHAPTER XIII-SUPPLEMENTARY TESTS OF COMMON STOCKS

REINVESTMENT OF SURPLUS INCOME

REINVESTMENT OF SURPLUS INCOME FROM STOCKS

SUPPLEMENTARY TEST No. 3-1091-1922

SUPPLEMENTARY TEST No. 4-1880-1899

SUPPLEMENTARY TEST No. 5-1866-1885

CHAPTER XIV-INVESTMENT MANAGEMENT

APPENDIX I-RETURN FROM BONDS, 1866-1885

INCOME FROM BONDS

APPENDIX II-RETURN FROM BONDS, 1866-1885 (SECOND GROUP)

APPENDIX III-RETURN FROM BONDS, 1880-1899.

Notes:

Description based on print version record.

ISBN:

9781786256294

1786256290

OCLC:

974590407