The Wise Investor
3.11 The individual within the system
The soft dusk light filtered through the trees of the park.
Even though it was midsummer, the air was distinctly chilly.
Kate held her coat tight around her to keep out the cold.
She looked at John.
The cold did not seem to affect him, and she could still
see the warm glow of fire in his eyes and the relaxed smile
on his face. They had been resting a short while, as they
always did after each major topic, when John spoke again.
"Next week, my dear," he said like an excited little boy,
"we will begin the really interesting subjects.
This is when your hard work will finally start to pay off,
when you will learn how to manage and reduce your risks,
especially the greatest risk of all, the risk of dying poor."
Kate could see that the topic excited him, and she was
anxious herself to hear what he had to say. All the talk had
been useful, but she was more interested in actually having
money so she could do the things she wanted to do.
"Now, however, we must finish the things we have been
discussing these past few sessions. I have tried to show you
a little about how the world works, how business operates,
how the banking system works and how market forces
affect almost everything related to money.
I am not trying to make you an economist, but you do
need a general understanding of how the financial world
works, if you are going to invest your money successfully."
John paused for a moment.
"Investment, as I have said Kate, is using your existing
money to make more money.
It involves keeping your wealth in the form of assets that
will generate an income and rise in real value. Always
remember, though, that you are part of the system that I
You live within the economic system that we have talked