The Wise Investor
Its importance is beyond measure. It will protect you, and
protect your money. Anyone who follows this rule will never
loose all their money, regardless of their approach to
Kate looked at her grandfather, curiosity growing on her
"Kate," John said, "the golden rule is this: never put all
your money in one place." John paused, letting his words
echo through Kate's mind. These were the most important
words he would speak to her, and he desperately hoped she
would see their importance and follow them.
"I realise, Kate, that this seems pathetically obvious.
However, very few people that I know follow this principle
properly. The only true security is in spreading your money
around. Choose different types of investment, the more
different from each other the better.
We will cover the important investments later, so have no
fear, I will show you what to do.
There are many different risks in the financial world. The
best way to protect your money is to put it into several
different investments. Always, of course, choose high quality
investments in every field. However, make sure you invest
in different fields, not just several purchases in the one field.
Even with the safest investment there are tiny risks.
Loaning your money to the government, in the form of
government bonds, is the safest possible investment. If the
government of the country fails to repay its debts, then the
whole society will break down and the only true wealth
would be food, medicine, and accurate weapons.
Even with this, though, there is the one-in-a-million risk of
Your cheque may lost in the mail, a computer error may
occur, or deliberate fraud by an employee may happen. It
may be a one in a million risk, but this is no consolation if you
happen to be the one person in the million who suffers from
The only way to truly protect your money, Kate, is to