The Project Gutenberg EBook of Profitable Stock Exchange Investments, by
Henry Voorce Brandenburg
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Title: Profitable Stock Exchange Investments
Author: Henry Voorce Brandenburg
Release Date: October 27, 2013 [EBook #44052]
Language: English
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_Profitable Stock Exchange Investments_
_PRINCIPAL AND INTEREST GUARANTEED_
_Henry Voorce Brandenburg & Co.
(INCORPORATED)
BANKERS
6 WALL STREET, NEW YORK, N.Y._
_Copyrighted 1901
Henry Voorce Brandenburg & Co._
PREFACE
This book is published to show the absurdity of trying to make money
speculating in Wall Street without adequate capital and the ease with
which it can be made with capital and proper methods.
The following pages open to the public a safe, conservative, and highly
remunerative channel for the investment of their surplus funds, which
does not have the element of risk and uncertainty that exists in
general business.
PROFITABLE STOCK EXCHANGE INVESTMENTS
You read a great deal about the money lost in Wall Street.
_As a matter of fact there isn't any money lost in Wall Street._
_It simply changes hands._
People talk loosely about gamblers and speculators losing all their
money in the end.
If money is lost, somebody has got to win it.
The people who go plunging around in Wall Street making all sorts of
speculations on margin naturally lose their money. They ought to expect
to lose it, and they ought to lose it whether they expect to or not.
They are simply gambling with all the odds against them.
Meanwhile, the wise and shrewd operators follow prudent, business-like
methods and get the money.
The Vanderbilts, Goulds and Morgans of Wall Street are sometimes
described as robbers waiting in their dens to slaughter the poor
innocents who venture within reach. That is all nonsense. _They win
because they know how to play the game, and others who have sense
enough and patience enough to play the game in the same way will win
too._ They absolutely cannot help winning.
The purpose of this book is to inform the reader fully as to the
methods by which money can be taken out of Wall Street--the methods
used by the successful operators of the past twenty years to our
knowledge--the methods which positively must win year in and year out.
We purpose to give the public an opportunity to make a safe and
profitable investment in Wall Street, and have their money handled for
them according to correct and profitable methods.
The men who win in Wall Street are those who invest in stocks--good,
dividend-paying stocks, buying them when they are low, selling them
when they are high.
This is not gambling nor speculation any more than any legitimate
business is gambling or speculation.
In all classes of business we buy at a certain price, and sell at a
higher price.
_We buy under the most advantageous circumstances possible, paying
the least possible price and selling at the highest market price._
This is what we are doing in Wall Street, and as we handle only the
stocks of sound and stable corporations, the security behind our
operations will be the strongest in the world.
The gist of the matter is that the stocks of the leading and most
stable corporations of the country are tossed about in Wall Street from
speculator to speculator, going up and down constantly and varying
enormously in the prices at which they are bought and sold.
These changes in prices are nearly always due to a feverish and excited
market. The stocks themselves do not actually vary in real value. They
are worth a certain sum all the time. They are paying dividends on that
sum and the stocks at their real value are always a good investment.
Yet by the manipulations of the speculators and on account of the
exigencies of these Wall Street marginal gamblers such stocks can be
bought at times at a fraction of their value, and by reason of the same
causes can be sold at other times for far more than they are really
worth.
_The men who make the money in Wall Street are those who know what
stocks are really worth and who buy when prices, go down and sell when
they go up,_ buying and selling the same stocks over and over again,
and making a handsome profit on every transaction. They do not care how
low a stock they hold goes for the reason that the stock belongs to
them, they know what it is actually worth as a dividend payer, and in
the skyrocket performances of the speculators of the Street they take
no interest except as it gives them opportunities to buy and sell. They
do not care how high a stock goes; they have no shortages to cover, but
can simply sit back and sell as much of their holdings as they choose
whenever they see an opportunity to make a big turn.
Such men will turn a block of stock in a given corporation over and
over dozens of times in the course of a year, making so much money on
it that even if the stock should disappear off the face of the earth
altogether, they would still be far ahead on it, simply on account of
the numerous advances and declines.
By owning stocks in a large number of good, sound corporations, they
will average to make a certain sum of money every day in the year. They
spread their invested capital over a wide field in this manner, and the
laws of average make them sure gainers at every stage of their
operations.
_This is, as you will observe, very similar to the principles upon
which the great life insurance companies are managed._
Many of these commenced business starting with but a few thousand
dollars, and they now have assets of millions. They have piled up this
enormous wealth by insuring the lives of human beings.
Every company which has not succeeded has failed because it did not
issue a certain number of policies.
_The secret of success is the large number of risks reducing the
chance to a minimum._
No life insurance company could succeed if it insured but a few lives.
By the law of average, insurance companies can tell just how many of
the people they insure will die each year.
When you make an application for life insurance the first question they
will ask is your age, and by referring to their tables they can tell
you the month and day when you will die. Now, you may not actually die
upon that day, but you do theoretically, and the point is that they
have so many risks that the law of average, always prevailing, in the
end brings everything out just as figured.
The fact that one person lives longer than the date when his life
should end is offset by the fact that another person dies sooner than
expected, and thus the law of average is absolutely maintained.
The postal authorities could not come anywhere near telling how many
letters would be mailed in the City of New York on a certain day, but
they can come with remarkable closeness to the average for a year in
advance, and predict with certainty how many people will write letters
and forget to address them during that time.
_It is by the working out by the law of average as best exemplified
by the insurance business that it is possible to work out a plan by
which Wall Street stocks can be dealt in with absolute safety and
certain profit._
Of course, no man or company could purchase one hundred shares of stock
without the risk of a loss. That is to say, no man should make a
purchase of this kind unless he is in a position to buy again and again
many times over and still hold all that he has previously purchased.
Buying a certain quantity of stock in one corporation is very much like
an insurance company insuring the life of one man. But when you buy
thousands of shares of stock in various corporations, some stocks going
up and some going down, the law of average is an absolute protection
and the statistics of stock fluctuations for the past twenty-five years
show beyond the possibility of doubt that this is true.
The fluctuations in the prices of good, dividend paying stocks are
something remarkable. _Some active stocks show a fluctuation of five
thousand times their value in a year, thus offering a continual
opportunity for money making._
These are the stocks which are constantly speculated upon, the stocks
on which so much money is lost and upon which the cool headed and
careful operators make so much.
The Western Union Telegraph Company's shares have always paid 5%
dividend, and the average market price has been about 90, making the
income about 5-1/2. Now, suppose it is purchased in ten-share blocks on
every one per cent. decline and none sold above the average price, it
will show an income of more than 43% per annum, besides some dividends.
_Suppose the very worst were to happen and there was a 20 point
decline in Western Union, then we would have_
10 shares at 90 $900
10 " " 89 890
10 " " 88 880
10 " " 87 870
10 " " 86 860
10 " " 85 850
10 " " 84 840
10 " " 83 830
10 " " 82 820
10 " " 81 810
10 " " 80 800
10 " " 79 790
10 " " 78 780
10 " " 77 770
10 " " 76 760
10 " " 75 750
10 " " 74 740
10 " " 73 730
10 " " 72 720
10 " " 71 710
10 " " 70 700
-------
Total Investment $16,800
It will be seen that $16,800 will handle a ten-share lot of Western
Union Telegraph through a regular "Black Friday" panic, with a
resulting investment as stated above. It must be borne in mind that the
average prices of these purchases is 80, giving a dividend of 6% on the
investment, but when the market has resumed its normal condition (90),
the profits will be $2,100, exclusive of dividends.
If lots of 100 shares each were purchased, there would be profits of
$21,000 exclusive of dividends.
_The shares of the American Sugar Refining Company fluctuate 4,900
times their par value every year, and our method applied to them will
give a profit of from 200 to 300% per annum, exclusive of
dividends._
While we refer to the possibilities in making investments in Western
Union and American Sugar Company's shares, we include in our operations
a number of different securities, all at the same time.
For instance, when we would purchase one hundred shares of one stock,
we divide it into five or ten different lots and do the same thing in,
say, ten or twenty different stocks all at the same time; therefore,
instead of having on hand a few large lots, we have two or three
hundred small lots, purchased down to the lowest prices, and by
purchasing outright a large quantity in little "lots" at different
prices, the average cost eliminates the risk of loss and insures
certain profits.
According to the results of speculation and manipulation, the twenty
different stocks that we deal in do not usually all go down at the same
time. Some are going up, while others are going down; therefore, we are
receiving profits in one, while making advantageous investments in
another.
_We have been established in Wall Street for a number of years, and
we know about the various stocks on the market, their value and earning
capacity._ We know the stocks which are most sought after by
investors, and the stocks which are used by speculators to make money
out of the public.
We now offer to the public the best plan for a legitimate investment
speculation. We have an authorized issue of $500,000 debenture bonds
due and payable in three years, with interest at 5%, payable
semi-annually, for the purpose of buying and selling stocks and
securities as dealt in upon the stock exchanges of New York.
_In consideration of one-half of the net profits accruing from these
investments we guarantee the bonds and interest at the rate of 5%, and
conduct, manage and direct the business._
We distribute the net proceeds on the first of every month, one-half to
the bondholders and one-half to our company.
These bonds are issued in sums of $25 and upwards, as purchasers may
direct, and are transferable only upon the books of the company.
_The first thing to be sought is absolute safety in investment._
Only sound, dividend paying securities will be bought and only at a
bargain when it is known beyond question that the price is below their
actual earning power. Having purchased and paid for the securities the
bondholders become the owners of them, and they will be placed in our
vaults until such time as they can be sold at a handsome profit.
_No get-rich-quick methods will be used, and no speculation indulged
in._
No large amount of money will ever be tied up in one stock.
The operations will be spread over a large amount of ground, making
small investments in proper securities, thus practically eliminating
all risk of loss. It is more certain than life insurance business.
The chances of loss will be considerably smaller than they would be in
banking, manufacturing or mercantile enterprises.
Purchases will commence when a stock is over-depressed and evidently
selling below its real value.
Purchases will continue so long as the price continues to go down.
These stocks will then be held and we will have every advantage over
the market, instead of the market having the slightest advantage over
us, as it does over ninety-nine out of a hundred speculators.
_When the speculator is forced to sell at a low price we begin to
buy._
When he is forced to buy at a high price we will be ready to sell.
We have the advantage over the market at every stage of the game.
The market cannot force us to do anything because we are in a position
to do precisely as we please.
_This business is strictly cash, buying for cash and selling for
cash, trading in securities of strong, dividend paying corporations and
going steadily forward every business day in the year._
No credit will be extended or asked.
There will be no bad debts.
No money has to be expended for plant, equipment or other costly things
which figure in ordinary lines of business.
_Every cent of money will keep working all the time, and such of it
as is not invested will be drawing interest in a Trust Company._
There will be absolutely nothing to worry about.
When we want to buy other people are unloading. They have been frozen
out and have to sell.
The more freezing out there is, the more panicky things get, the better
it is for us.
There is more money to be made in one panicky day than there is in
weeks of ordinary Wall Street trading.
Then, on the other hand, when everything is looking first-rate and
prosperous, Wall Street is full of people who want to buy. There is
where we are ready for them again.
We bought the stocks when people had to sell them.
Now the people want to buy and we are right on hand with the
goods--bought cheap at the proper time and now glad to sell at a goodly
profit.
This method of ours is nothing new or untried. It has stood the tests
of time and made many a millionaire.
_It is founded upon the firmest possible foundation, and has gone
over squalls, slumps and panics, and in twenty years, to our personal
knowledge, it has never failed to win._
We know of a number of people who have become rich by following this
method. We know of one man who operated for fifteen years. He retired
January 1, 1898, reputed to be worth twenty millions of dollars. He
never lost, paid for what he bought, buying proper securities in small
quantities at a declining market, going right along to the bottom still
buying and then holding on until the market was in its normal condition
and he could pocket his profits and be ready to do it all over again.
You will note that this business absolutely cannot be affected by
financial calamities.
On the contrary, a panic is a blessing.
It may seem to you that if this method of taking money out of Wall
Street is so simple, that you can do it yourself. You certainly could
if you had the capital, knew the stocks and their value thoroughly,
could devote your whole time to it, and, what is more important, had
the firmness and will power to follow the method and not be swerved
from it by the temptation of speculation.
Not one man in a thousand can go into Wall Street and fail to be
influenced by the wild speculation which is going on there, the
apparent opportunities for getting rich in a minute, the tips and
rumors and all that sort of thing. That is precisely why so many people
are wrecked in Wall Street, and the reason why so few succeed is that
they have not the patience and the cool, calm judgment requisite to
play the game in the only way in which it can be beaten.
The Manager of our Corporation will not be allowed to be influenced by
anything except our instructions. He will be under sufficient bond to
follow his instructions, which will be precisely as outlined above. He
will be a buying and selling machine, oblivious to all outside
influence. He must carry out our orders regardless of whatever may
happen, and he is a man who can be depended upon to do it.
_A corporation, being a machine, can succeed by this method for the
reason that it must follow a certain outlined course and cannot, and
dare not, deviate from it by a hair's breadth._
The individual left to himself in Wall Street soon finds himself
figuring, speculating, making forecasts, listening to tipsters, reading
financial newspapers, living with one eye on the ticker, and pretty
soon he has forgotten all about the method he intended to follow, and
is a plain, ordinary Wall Street gambler--and the shrewd and cautious
wise heads of the Street soon get his money.
The marginal operator is always at the mercy of the market instead of
having the market at his mercy.
The wonder is not that so many of them lose so much money, but that any
of them win at all.
It is only a question of time until they are wiped out. The odds
against them are altogether too great, and while they may weather a few
slight squalls and run along smoothly for a time, sooner or later
disaster comes, generally unexpected and overwhelming.
What is the use of trying to make money in Wall Street by marginal
speculation when the odds against you are so great?
If you want to undertake to make money, why not make your attempt a
scientific one? Why not place the money you wish to invest where it
will be handled in a manner by which, as shown by the statistics of
twenty years, cannot fail to win.
It is no more speculation than it is for a banker to loan money to his
friends and associate business men.
_In fact, it is not so speculative for the reason that we make
investments in the stocks of companies of standing--stocks which are
just as good as gold, and represent vast enterprises, enormous
properties and great earning power._
It may be asked, what will occur at the end of a year's business if
some of the stocks are selling below the price at which they were
bought. The answer is that they are kept in our vaults because they are
safe, sound, dividend-paying stocks, but the dealings in the securities
will show a handsome profit, more than enough to pay for the shares on
hand because the numerous little purchases and the accompanying
reactions in these very stocks have already resulted in a large number
of profits.
Generally speaking, there will be no stocks carried a whole year
because we will never buy except under forced conditions, and the
reactions are generally very prompt, so we will be able to sell out
quickly at higher prices.
_It matters not how much you may know about Wall Street and financial
methods and matters in general, you cannot figure out a way in which we
can fail to succeed._
Suppose the worst kind of a panic comes, the worst possible period of
financial depression; suppose, we have stocks on hand which are going
lower and lower; suppose, we buy until our buying capacity is
exhausted, and still stocks go down and down; in what way can we be
injured? We do not owe anybody anything, and whatever money we have
made is in the pockets of our bondholders. Nobody has extended any
credit to us, and nobody can hold a club over us. We have no running
expenses that amount to anything--no big rents to pay, no insurance, or
anything else of that sort. There is no pay-roll to meet, no big stocks
of goods to worry about--simply nothing that can squeeze us a penny's
worth. All that we have to do is to wait, and waiting under these
conditions is the easiest thing in the world.
_The stocks we own are all those in corporations, concerning whose
solidity and assets there cannot be the slightest shade of doubt._
These stocks all have a certain value, as shown by the earning power of
the corporations behind them. Sooner or later, they have simply got to
go back to their normal, actual, tangible value. So we simply wait
until they go back there, and that is generally a question of a very
short time. Short or long, however, the time must come, and when it
does come, we are in line to reap the richest kind of a harvest.
There is absolutely no loop-hole in this proposition. There is
absolutely less risk of loss than in any business or other enterprise
you can mention.
It is a business carried on with good, hard cash, and with every
possible advantage in our favor.
_The holder of even one bond of $25 stands upon the same footing as
the owner of a large block, receiving regularly the pro rata earnings
represented by his share._
The officers and directors are well known men of business, thoroughly
familiar with Wall Street and its methods, most of them having been for
many years actually engaged in some business requiring expert financial
knowledge.
The bondholders can be assured that their money will be invested and
handled as set forth in this prospectus, first, because the officers
and directors cannot have any motive for doing otherwise, inasmuch as
they know that the method herein outlined is the only one which can win
in Wall Street. They are also protected in every possible way, and
every desired assurance will be given in this respect.
_The books and records of this Company, open to bondholders, will
show at all times precisely what investments have been made, how money
has been made upon them, what stock are owned by the Bondholders, and
so on._
These records can be compared with and verified by the financial
records of the New York Stock Exchange, as published through the
regular channels, so that the bondholder can at all times assure
himself that we have done just what we claim to have done, and that he
has secured his just and equitable share of the profits of the
operation.
_WALL STREET DICTIONARY_
We give below a few definitions of some of the more important words
used in the financial operations of Wall Street.
The Street itself has been the center of finance of this country for
nearly a hundred years, when the New York Stock Exchange was
established.
Here are offices of the greatest and wealthiest financiers the world
has ever known.
It is the greatest speculative center in this or any other country.
Here are found the men who create and handle railroads and the largest
industrial enterprises in the world.
In the Exchange millions of dollars' worth of stocks and bonds are
bought and sold every day.
Here are found hundreds of banks, trust and safe deposit institutions,
private bankers and capitalists, a money center which controls
seven-tenths of all the money in America.
In Wall Street you may buy or sell one or more shares of the stock of
any great railway or industrial company in the country.
Here is where all important enterprises are financed, and where the
public sends enormous sums of money to be invested for speculative
gain.
INVESTORS.
Those who come into the market and purchase securities for the purpose
of holding them as safe investments for their money, securing an
interest or dividend income thereon.
SPECULATORS.
Those who buy and sell upon margins for quick profits. They are
non-producers. They are simply gamblers, with the odds badly against
them. They sometimes prosper for a while, but lose their money in the
end.
INVESTMENT SPECULATORS.
Those who buy stocks judiciously, selecting choice securities whose
value is well known, buying when values are depressed, and selling when
sufficient advance occurs to give them a good profit. This they repeat
over and over again, and make money while the speculator on margin
loses. It is to this class that we appeal.
"A BULL."
A speculator who buys expecting to sell at a higher price. He is called
"long" on the market, meaning that he is buying with the expectation
that the market will go up and that he will sell out at a profit. His
belief not only is that prices are going higher, but he uses all his
influence in every possible effort to make them go higher.
"A BEAR."
A speculator who sells in the expectation of a decline. He is called
"short" of the market. He is selling what he has not got. He does this
in the expectation that prices are going down, and that he will be able
to buy the stocks at a lower price than that he has to pay for them,
and by delivering them at the price at which he sold to make his
profit. He puts up his margin and takes his risk. As an illustration of
what a "bear" is and does, suppose you believed that in a week's time
corn would go down in price; therefore, you sell and promise to deliver
so many bushels of corn at a certain price. If corn does go down, and
you can buy it at a lower price than that at which you sold, you are a
winner. If it disappoints you, and it goes up, you have to deliver it
anyway, and are out of pocket.
"A LAMB."
A man who thinks he knows all about the Wall Street game, and bases
this belief on the fact that he keeps abreast with the times, reads all
the financial columns in the newspapers, wades through all the Wall
Street papers and watches the ticker faithfully and conscientiously.
When he is sure he knows all about it he goes jauntily down into the
Street, and soon discovers that he knows nothing about it at all. He
finds this out just at the moment when all his money is gone.
"A FLYER."
A flyer is a more or less reckless gamble, which pretty nearly
everybody feels strongly inclined to make once in a while. When a flyer
turns out right it is a very profitable thing, but the trouble with it
is that it rarely turns out right or anywhere near it.
"A BREAK."
A rapid decline in prices of stock.
"A BULGE."
A quick upward movement in prices of stock.
"FLAT."
Stock loaned by one broker to another without interest is loaned
"flat."
"A HEDGER."
One who buys a quantity of stock, and then for fear he has made a
mistake, sells the same quantity in order to "hedge" against the loss
that he fears is to come. A "hedger" usually makes nothing, because the
profit on his purchase is offset by his sale, or vice versa.
"LIQUIDATION."
Generally selling out of stocks previously purchased by the "bulls."
"MANIPULATION."
Forcing stocks too high or too low by misrepresentations, rumors and
false sentiments.
"OPTION."
A contract that one person will deliver to another a certain thing at a
fixed price within a certain time.
"POINT."
One dollar or one per cent. a share on stock is one "point." Stock
advances and recedes by "points," and is always so quoted.
"PRIVILEGES."
"Puts," "calls" and "option" come under the general head of
"privileges."
"PROMOTER."
A broker who secures the capital to finance corporations.
"REALIZING."
Closing out stocks or contracts of any kind to secure profits.
"SOFT SPOT."
A general but slight weakness shown in prices.
"AN OVERSOLD MARKET."
This means a market in which the traders have sold "short" to an extent
which conditions do not warrant. They thereby place themselves at the
mercy of the "manipulators," who stand ready to squeeze the "shorts"
when the proper moment arrives. "AN OVERBULL MARKET" means the reverse
of this situation.
"RAIDING THE MARKET."
Concerted action of sellers of all descriptions, who discover some
cause for loss of confidence in the maintenance of prices and sell
right and left every stock for which they can find a buyer.
"A DULL MARKET."
This describes a market where there are few transactions and small
fluctuations.
"A HEAVY MARKET."
One in which prices barely hold their own, and are inclined to sag off
a little during the day, closing lower than they opened.
"NET GAIN."
The actual amount of profit after taking broker's commission, war tax,
or revenue stamps.
"GROSS LOSS."
The entire amount of loss suffered after adding broker's commission,
war tax, etc., to the loss on the transaction.
"ROUND TURN."
This means a complete deal after having bought and sold or sold and
bought, as the case may be. For instance, in stating a broker's
commission you would say that it amounts to one-sixteenth for buying
and the same for selling, or one-eighth for the "round turn."
"COMMISSION."
This is the remuneration which the broker receives from a customer in
executing orders for the purchase or the sale of stocks or grain. This
payment is based on the par value of stock or grain bought and sold,
and not on prices at which the transaction was executed.
"A POINTER."
Information supposed to come from the inside and giving you an
infallible tip on just what is going to happen. Sometimes information
of this kind is valuable, but rumors of the wildest kind are so
continuously floating around the Street that a "pointer" is more than
likely to be an unfounded, silly rumor, which somehow has gotten into
respectable company. If you know that the information comes from a
reliable party who knows what he is talking about, and have money
enough so that you can make an investment--not a speculation on narrow
margin--and can afford to hold on after the methods of this company
until prices rise, the "pointer" may prove a good thing.
"A POOL."
A syndicate of men who combine forces to get control of a property.
"A CORNER."
When a "pool" or an individual quietly buys up the shares of a property
so that they can absolutely control it, it is called a "corner." Those
who succeed in effecting a corner will not let the "bears" cover their
"short," except at extraordinarily high prices.
"A SQUALL."
Depressing news that comes unexpectedly upon the market, and frightens
the timid speculators into letting go their holdings.
"A SLUMP."
A continuation of depressing influences which makes the margin dealers
sell out.
"A PANIC."
A time when most of the "bulls" have been wiped out and everybody is a
"bear" on the market and goes "short" because it is the prevailing
sentiment.
"Squalls," "slumps" and "panics" are disastrous to the ordinary
speculator, and ruin them by the thousands. They represent, however,
the very best opportunity for money making, as has been shown in
hundreds of instances. They will give this Company the chance to buy
the best sort of securities at prices so low as to make big profits a
certainty. It is under these conditions that this Company will make its
purchases. With patience enough and capital enough it is possible by
acting promptly at the time when these bargain days occur to make more
money in Wall Street than in any other place in the world.
"A RALLY."
A state of affairs which exists almost immediately after the public has
unloaded its "long" stocks and put out a "short" line.
"A CALL."
A privilege to buy a certain number of shares at a given price within a
certain space of time.
"A PUT."
A privilege to sell a certain number of shares at a fixed price within
a given period of time.
"A SPREAD."
When an operator buys or sells both a "put" and a "call."
"ON CURB."
The private dealings made outside the Exchanges. A curb-stone broker is
a familiar figure and carries on his business every day in Wall Street.
"INSIDERS."
There are two classes of Wall Street men known as "insiders." One is a
class which is really inside. Officials of Corporations, of banks and
Trust Companies and wealthy financiers who really control the
properties dealt in the Exchanges are really "insiders." They control
the market, but never give out under any circumstances any information,
and in most cases they do not know themselves just what they are going
to do from one day to the next.
The other set of "insiders" are those who only make the "lamb" think
they are on the inside. They never have any money of their own to
speculate with, and they sell their "knowledge" to outsiders for
fraction profits when there are any. They advertise and give out their
pretended information, and have it sent out all over the world, knowing
that every city and town may be depended upon to produce "lambs."
BUCKET SHOPS.
A place where you can bet whether a stock will go up or down. You do
the guessing and the "bucket shop" makes the money. If you win
sometimes you get your money back and sometimes you don't.
"TIPSTERS."
The "tipster" in Wall Street is like the tout on the race track. He
pretends to know all about it, and is a very solemn and mysterious
individual. He tells one man to buy and another to sell, knowing that
whichever way the market goes one of them will be a winner, and the
"tipster" will get his share. The one who wins tells his friends, who
think the "tipster" must be a wonderfully shrewd individual, and in
this way he builds up a profitable business, and the "lambs" come
flocking his way. He keeps on telling one set of his victims to buy a
certain stock, and another set to sell it. Whether the stock goes up or
down the "tipster" wins, and those who are on the right side of this
particular deal spread his name and fame among their acquaintances.
"INFORMATION BUREAUS."
These bureaus are "tipsters" pure and simple, only they travel under
the name of a "bureau," instead of their individual names.
"A SCALPER."
One who is in the market continually guessing and gambling on the rise
or fall. He risks a thousand dollars to gain twelve and one-half
dollars.
DEALING ON MARGIN.
This means that the buyer of a stock only deposits with his broker a
small part of the value of the shares he is buying or selling. He is
simply gambling, and very hazardous gambling it is. If he guesses
wrong, he must pay up more and more margin or lose altogether. Dealing
on margin is the favorite sport of the "lambs," and it is very
profitable, indeed, to those who take advantage of their misfortunes.
The odds are all against the speculator on margin, and sooner or later
his money disappears and he disappears with it.
A SUCCESSFUL OPERATOR.
A man who is neither "bull" nor a "bear," but simply waits and takes
advantage of opportunities. He knows the power of money. He knows the
weakness of the public, and how gullible it is. He knows how to worry
and scare the people. He sets his machine for the game and gets it.
Ordinary market affairs do not interest him. When a "squall" appears he
is notified instantly, and gets ready for business. He knows all about
the stocks that he deals in, precisely what they are, and just what to
do. He knows what to buy and just to a fraction when to commence to buy
it. He gives his orders, pays no more attention to it, except to see
how much he got. He buys just as closely to the bottom as it is
possible to get, and when it is all over he goes away happy, asking to
be notified when the market is up again.
_CONCLUSION._
The contents of this book, including the Wall Street definitions given
above, should give the reader a pretty clear idea of what is done on
the New York Stock Exchange, and just why and how the blundering public
is continually losing its money and giving Wall Street a black name.
_It should convince you that you cannot afford to attack Wall Street
by the methods that have been tried so many thousands of times and
found to be utter failures._
About the worst possible thing that can happen to a man is to take a
"flyer" in Wall Street and win. His winning convinces him beyond a
doubt that he knows all about it, and he goes deeper and deeper,
sometimes winning a little, but oftener losing, until some
extraordinary turn of the market, some unforeseen incident, or some
reckless piece of speculation wipes him out. That is the record of the
guesses of ninety-nine out of a hundred men who try to take money out
of Wall Street.
What is the use of following right along in their footsteps and
trusting to dumb luck or something of that sort to pull you out?
If you have any money that you want to make money with, go into Wall
Street through our medium, and place your money in hands where it will
not only be perfectly safe, but where it will be handled in the only
way that can possibly beat Wall Street.
There is no doubt at all about this.
_The thing can be done, has been done, is being done, and will always
be done._
And the men who are doing it are piling up enormous fortunes for
themselves, they are the only men who get the money in the end.
If you want to be on their side instead of on the losing side, the only
possible way you can do so is in the manner outlined in this book and
we offer you the best, most favorable and safest opportunity.
_QUESTIONS AND ANSWERS._
Q. How many small "lots" can you handle with a capital of one hundred
thousand dollars?
A. About one hundred.
Q. In case of a sudden "slump," say twenty per cent., what is the
result?
A. No change of base is made.
Q. Suppose some lots are on hand bought at higher prices?
A. They are kept until sold at a profit, meantime paying a dividend.
Q. Why do you buy dividend paying stocks?
A. Because they carry themselves.
Q. How often do you make purchases in a declining market?
A. That depends on the market, the stock, the times, and conditions
generally, which can be properly judged by the managers, who are
devoting all their time and facilities to the business, and know the
exact condition of every property dealt in.
Q. What would be the effect of an unexpected calamity?
A. Panics are a great help to this method.
Q. How often do you make purchases or sales?
A. About every day, as some one or more of the different stocks have
moved sufficiently to do some purchasing or selling.
Q. Do you expect to carry a stock a year before you can sell it?
A. Yes, if necessary, but not likely, because first purchase only
begins when the stock can be had at a bargain and is only a small
"lot," and when the average has been reached and sufficient profit
made, all the little lots may be sold as one lot. It is not
contemplated that this will be done unless it was desirable to close
out in any particular stock. There may be some loss on first purchase,
but the lowest purchases have handsome profits, and the transaction as
a whole renders large returns, when it is closed out and the process
commenced over again, and again.
Q. Do you guarantee investments made in the bonds of your
company?
A. Yes, because we know the security is absolutely safe, and we have on
hand all the time during the three years either the cash or an
equivalent amount in sound dividend shares in the most prosperous
railway and industrial corporations in the world.
Q. Do you guarantee interest on the bonds at the rate of five per
cent.?
A. Yes, we guarantee the principal and that the profits to the investor
shall not be less than five per cent. per annum, payable semi-annually,
and we will pay it regularly, but it will be charged against the gross
profits, the same as commissions.
Q. How much more than five per cent. do you expect the bonds will earn?
A. At least 25 to 50 per cent. per annum.
Q. What are the denominations of the bonds?
A. Twenty-five dollars and upwards. We issue them in regular numbers to
the purchasers for the amount of his or her investment, the same as a
life insurance policy is issued.
Q. Will these bonds have a market value during the three years?
A. Yes, and will sell above par after the first six months.
Q. Why do you issue bonds for only twenty-five dollars?
A. So as to give small investors the opportunity to join with
capitalists for savings and better returns than they can get elsewhere.
Q. Do you consider your bonds as safe and profitable as savings banks?
A. Yes, and more so, because the security is better than any savings
bank which receives money, pays a low rate of interest, and loans it
out on securities that do not always have a cash value. Our bonds are
secured by an equivalent in cash or the safest and soundest dividend
paying securities in the world, and can be sold instantly every
business day in the year; furthermore, they earn not less than 5 per
cent. per annum, with a practical certainty of a great deal more.
Q. How do you buy the securities?
A. Through our brokers on the floor of the exchanges.
Q. Can a bondholder in your company have information of the condition
of these investments any time?
A. Yes, every day, if he wishes.
_Correspondence is invited, and the fullest information will be
frankly given._
Henry Voorce Brandenburg & Co.
Incorporated, Capital $100,000
BANKERS
No. 6 Wall Street New York City
H. V. Brandenburg, _President_
Charles Austin Bates, _Treasurer_
Capital _for_ Good Projects
First-class propositions in railroad building, gas and water plants,
electric lighting and power, street car lines, mines and industrial and
mercantile projects fail because those who control them lack capital or
the knowledge and facilities for obtaining it.
It is our business to supply capital for meritorious enterprises.
Thousands of people have millions of dollars to invest, and yet
hundreds of good enterprises lie dormant for lack of cash. There is
plenty of money for any really good projects.
We organize companies, effect consolidations, create and guarantee bond
issues and act as trustees and fiscal agents.
We buy and sell Government Bonds and other securities dealt in on the
New York Stock Exchange and other exchanges, and give disinterested
advice to clients seeking investments.
We own and control investment securities paying from 3-1/2 to 12 per
cent. dividends, and will be pleased to send our regular list on
request.
We buy and sell real estate and deal in real estate loans.
Henry Voorce
Brandenburg & Co.
BANKERS
6 Wall St., New York City
BRANCH OFFICES
Girard Building, PHILADELPHIA
Salisbury House, LONDON
End of the Project Gutenberg EBook of Profitable Stock Exchange Investments, by
Henry Voorce Brandenburg
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