Cuban Investments 10 



SECURITIES THAT CANNOT DETERI- 

 ORATE IN VALUE 



Every one with money to invest, be the in- 

 vestment made by the individual, private cor- 

 poration, Savings Bank, Trust Company, In- 

 surance Company, Fraternal Organization, or 

 others, should be interested first in the permanent 

 security that will safeguard the investment, and 

 second, in the profit to be derived from the 

 investment. 



Securities, having for their foundation over- 

 capitalization certainly cannot meet the re- 

 quirements of the sane and safe method of in- 

 vestment, regardless of what may be the promises 

 for returns. 



Behind the best securities known to the in- 

 vestment world lies a certain principle of the 

 enhancement in value of the collateral as the 

 holder of the securities receives back his invest- 

 ment and his compensation for the accommoda- 

 tion. 



Any security that is based on overcapitalization 

 must certainly be proportionately weak in those 

 guarantees of repayment of principal which 

 in themselves make the investment good or bad. 



The first and most important of this class of 

 securities are those, the principal of which is 

 guaranteed by absolutely immovable and inde- 

 structible property, as for instance a productive 

 farm, or a piece of city real estate, located in a 

 thriving community where values cannot, under 

 any reasonable conditions, deteriorate. In this 

 class of securities the land will remain regardless 

 of what may be the depreciation in improvements 



