Page 374 - One Thousand Ways to Make $1000

will loan you up to 80 per cent. You can never tell when unforeseen
conditions may make it necessary for you to raise money quickly. The sum
needed may be just a little more than the collateral value of your bond, in
which case you would have to sell it perhaps at a time when values were
depressed. Bonds on high collateral value are usually “listed”—an additional
advantage.
Buy bonds in as large denominations as possible, as the banker or broker
charges a minimum fee for selling your bond. As a rule this fee is based on
$1,000 units. It is easier to keep track of a few bonds of higher
denominations, than it is a lot of baby bonds. The only advantage in having
five $100’s instead of one $500 is in case you wish to dispose of one of the
bonds. For a business man, however, it is better to borrow on a bond than to
sell it.
Few outside investments, however, are as good for a business man as his own
business. You may not want to put all your money into expanding your
business, but beware of those who tell you that you are foolish to plow back
the earnings of your business into buildings and equipment. They will tell
you that it is better to put your surplus in the stock market where it can make
10 or 20 per cent, whereas the best you could earn would be 5 or 10.

An Anchor to Windward

There is more to making money than merely allowing for a return on your
capital. When you put your money back into your business you are buying
protection against the next downward swing of the business cycle, and don’t
ever forget that it will come down some day, just as it may be going up today.
If you have a business of your own, with the plant and equipment paid for,
and you are free and clear of debt, you have nothing to fear, however hard the
winds of depression blow. You have in effect built yourself a cyclone cellar.
And no matter what you may be told, a cyclone cellar is mighty handy in a
country where business is one long series of ups and downs. Most of those
who make money when the tide is coming in, lose it when the tide runs out.
That is why, if you are wise, you will take advantage of good times to put out
a shore anchor against the day when the tide ebbs.

Never be stampeded by crowd movements. All the great fortunes that have