Investment Management

Investors, who cannot or who will not take the trouble to comprehend the laws that govern stock transactions, must be content with a very moderate return. They may, if they choose, learn the character of the risks, and understand the conditions of success, by the exercise of ordinary intelligence. No Prospero’s wand is needed in order to avoid failure; but only common sense and common prudence, such as all may cultivate. On the other hand, there are no short and sure cuts to success.

It does not come by wishing and waiting for it. The proper means must be used, likely opportunities turned to advantage, and a careful judgment must be exercised.

If it be thought that in one or two transactions offive or ten thousand each a great fortune will be instantly secured, there is certain to be a speedy process of disillusioning.

Neither can it be expected that every venture will prove lucrative.

“The best laid schemes o’ mice an’ men gang aft agley.” No mechanism is so automatically perfect in it working as to be free from all risk of friction.

It is the same with investments. However carefully made, it sometimes happens that unexpected complications arise, such as no foresight could have anticipated or guarded against..

Yet the law of averages is certain to operate, as is the case with accidents, with fires, and with every business.

—William Hickman Smith Aubrey, Stock Exchange Investments: Their History; Practice; and Results, 4th ed.

(London: Simpkin, Marshall, Hamilton Kent & Co. Ltd., 1897), pp. 210–211