Moreover, instead of selling short, the investors
should buy "puts" for six months, or, if possi-
ble, for longer time, in the London market.
These "puts" allow the holder to make almost as
much profit as if he had sold the stock short.
Any loss he may sustain is limited to the price
paid for the "put," or about $125 for one hun-
dred shares of stock.
There is no logical objection to buying on
large margins ; but the point which the book em-
phasizes is namely: An investment of a few
thousand dollars can be multiplied to an invest-
ment of several hundred thousand dollars in
about twenty years with but very little risk and
without selling "short," or purchasing on mar-
gin. The only requisite is a constant study of
Comparative and Fundamental Statistics, and
suflScient self control to act only in accordance
with what these statistics clearly indicate, refus-



THEORY 19

ing to listen to the optimism or pessimism sup-
plied by the daily papers and by the many indi-
viduals who are always giving free advice.
