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The Wise Investor


"Bastard!" Kate said with a smile, slapping her
grandfather on the arm. "You know I'm desperate,
and you're telling me bedtime stories!"
John went even redder.
"Don't worry," Kate said quickly, "It was very
interesting. The more you tell me, the more I see the
complete picture, how the whole system fits
together. You know John, you were right. When
you reduce it down to the basic elements, the
system is really very simple."
This made John feel better, and has face
returned to its natural colour.
"There are a few points about cash that you can
glean from these stories. First, cash is simply a
convenient way of carrying your wealth around.
Wealth is everything of value you own. Your wealth
can be in the form of cash or other assets. Cash,
however, is the most convenient way of buying and
selling. I should emphasise, Kate, that you are still
trading, just like the people in the valley. You are
simply trading part of your wealth, in the form of
cash, for something else. Hopefully," he said with a
dry smile, "something of similar value. Now, a small
rest. We will sit and soak up the stillness.
One cannot work too hard, Kate, without
becoming very ill." As John had said, they sat,
quietly, and rested. They rested a long time.
3.7 Markets
"The next step," said John after a long break, "is
a discussion on markets.
Markets for selling produce developed quite
early in the valley, but I have left a discussion until
now to avoid complicating the other issues.
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