The Source Of Happiness

Happiness comes from within, not from without. It cannot be purchased. On the contrary - as has already been shown - the very means taken to acquire profits often prove fatal to happiness. No matter how large the profits may become their whole idea is of more. The day when the money is to be expended on one's fellow men is pushed farther and farther into the future. Many hope that the mere acquirement of wealth and its accompanying financial influence and power will cause happiness to come as a matter of course They find their satisfaction short-lived. A large number who lose their health and influence seek to regain it with their wealth. The real trouble is that these men acquire along with their wealth a wrong philosophy of life, a misconception of their relations to society. They lose sight of the fact that property of itself is of no value, and that service is the only thing that will satisfy and endure.

Direct service to one's fellow men is the only truly enduring investment. To the extent that money is used in this way it will bring true happiness. Civilization will never be saved by either talk or money. Giving is a step in advance of talking, but no person will ever command the respect of the world until he goes a step farther and puts his words into action. Of all undeveloped resources, human souls and minds offer the greatest possibilities. Practical men are realizing that business is more than mere machinery and that prosperity really awaits the development and organization of human beings. It is not enough to be religious, and let the matter rest there. We shall not find truly enduring investments unless we express our religion in our business and strive to bring happiness to all those dependent upon us for their daily bread. We must strive to help others to help themselves, and give their souls expression.

Ill-Gained Profits

Profits secured from businesses which do not make people healthy, happy, or prosperous, are especially to be avoided. They ultimately will bring only harm to those who secure them. The brewer has a drunken son, the unprincipled lawyer has a wayward daughter, the business man who takes advantage of others ultimately dies in disappointment. The law of action and reaction works slowly, but never fails. Profits secured by helping others or developing the community endure and can prove a blessing to the man who makes them; but profits secured by illegitimate means or in a business which harms the community, ultimately fade away or prove a curse to the man who makes them. At least, this is what statistics clearly indicate.

Profits Through Investments

In considering the subject "Enduring Investments," we must not overlook the general feature of investing for profit. Thus far we have assumed that men have accumulated their money only through thrift and hard work. Statistics show that a large mount of wealth has been secured through fortunate investments.

The business and financial world is governed by the great fundamental Law of Action and Reaction, - as inevitable and unvarying in its operation as the Law of Gravitation. This same Action-Reaction causes the business world to travel in regular cycles, each consisting of the following periods:

Period Of Prosperity

High prices, high wages, increasing money rates, optimism, rabid speculation, over-expansion.

Period Of Decline

Falling prices, unemployment, pessimism, conservatism, and retrenchment.

Period Of Depression

Low prices, low wages, hard times, failures, decreasing money rates, thrift, and economy.

Period Of Improvement

Gradually rising prices, demand for labor, increased production, business on the up-grade.

Because these various periods follow each other in the same order and continue in this inevitable cycle, a constant and painstaking study of the combination of fundamental conditions which cause them enables some to forecast their coming with remarkable accuracy.

General Basis Of Operation

Once these fundamental laws are recognized and understood, the basis of successful speculative operation is self-evident:

Men buy securities in the Period of Depression when money is scarce, every one is panic-stricken, and fundamental conditions have forced prices far below their normal levels. These securities they hold through the Period of Improvement while prices rise and the public accumulates capital for the "Spree of Speculation" that always characterizes the ensuing period.

These same men then sell during the Period of Prosperity when every one is optimistic and fundamental conditions have forced prices far above their true and natural levels. They also hold their funds liquid through the Period of Decline when things are apparently going to pieces, and wait until fundamental conditions show that the low tide is about to be reached. They then buy in again and ride up to the crest.

The same fundamental laws govern investment conditions as govern speculative conditions, although bonds fluctuate between much narrower limits than do stocks. The effect of fundamental conditions on the whole investment market is even studied by wise investors so as not to make the mistake of buying long time securities when one should be buying short time securities, and vice versa.

Further, these men watch each individual issue in its relation to the Law of Action and Reaction. Since fundamental conditions are constantly undermining certain issues and strengthening others, the best results are secured only by studying conditions and transferring funds from weakening to strengthening issues.

Some say that those who make profits in this way are mere speculators and add nothing to the permanent welfare of the country. If the safety valve and governor on a locomotive add nothing to the welfare of the passengers in the train, then the man who buys during the panic and sells during the boom adds nothing to the welfare of the community; but I should not want to ride on a train if the locomotive had no safety valve nor governor. Both safety valves and governors perform most valuable work.