Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 5, 1975, Winnipeg, Manitoba Winnipeg free press wednesday March 5, 1975 for trap investors warned by the Canadian press a Toronto based investment service says a Small and closely managed portfolio is the surest route to Long term prof its but Many investors waste time by including too Many stocks at Little personal profit. Canadian business service says Over diversification is per haps the most widespread and subtly Laid trap for investors. An Over diversified portfolio tends toward the service says. While a Well balanced but Over diversified portfolio rarely shows disastrous losses in relationship to the Market it even less frequently does better than the Market. The Effort and time involved in following too Many stocks is just not Worth Many investors begin to build a portfolio in a sensible manner starting with some Canada savings Bonds then Iier haps adding a few convert Ible preferred stocks or Deben Tures and later some High Quality common shares. Of o r some unfortunately the construction of a Well balanced portfolio then deteriorates into a search for the Zero of the 1980s." a Small investment in a few highly speculative stocks seems to Cost a Little but a pattern of such investments can prove to be quite costly in the Long run the service says. For example if 40 per cent of a portfolio is uniformly in vested in 15 highly speculative stocks each will then represent 2.66 per cent of the value of the portfolio. At the end of a period of time perhaps two of the 15 have doubled 10 Are unchanged two have declined by 50 per cent and one has be come worthless. The net outcome the service says excluding the costs of commissions or the gains from any dividends paid is an Over All one per cent drop in the portfolio s total value. net Cost will never be known however since no one can say what investment opportunities you otherwise might have explored. The Oul ome would probably have been better had you devoted Only 20 per of your portfolio to speculative and concentrated that 20 per cent in the most promising two of the 15." i f two stocks had been fated to have Dou bled and the other poised for a 50-per-cent the net outcome would have been a five Pei cent gain in the portfolio s value. The important Point is that diversification should not be carried to such an extreme that the potential for profit is greatly diluted the service says. Successful investing requires a certain amount of Reading to keep up with developments affecting stocks and for most people the time available for such activity is limited. With too Many stocks none can be adequately what if you have already fallen into the trap Canadian business service advises the Best solution is to review your holdings and ruthlessly kick out the less promising components As Well As any stocks that Are riot in line with your investment objectives. Funds thus freed from unproductive pursuits can be used to enlarge your position in stocks that you intend to you and the Law conflict of interest conflict of interest now is a contentious subject at All Levels of government. There seems to be an Ever increasing concern on the part of the Public about elected officials being in a position to Benefit personally from the decisions that they make in elective office. The concern is understandable. There can be no justification for a situation in which for example a publicly elected official is Able to vote in favor of a tax Concession for a certain Type of business in which he himself is engaged. But As is usually the Case it is not All Black and White. There sometimes is real difficulty in deciding where to draw the line. A recent Saskatchewan Case showed the kind of problems that conflict of interest legislation May create. The Case turned on a Section of a Saskatchewan statute called the larger school units act. The Sec Tion in question said no person who is directly or indirectly interested in any contract entered into by or on behalf of the unit school Board or who participates or claims to be entitled to participate directly or indirectly in the profit thereof or in a Bene fit or emolument arising therefrom shall be entitled to become a member of the Board and the election of such a person As a member of the unit Board is null and void the Section then went on to exempt certain peo ple such As janitors tax collectors and merchants with whom the Board dealt on a Small scale. In this particular Case a school bus Driver was elected As a school Board member and his election was challenged in the courts. The party who brought the application argued that the person elected was disqualified under the Section quoted above. But the fact was that the elected Man did not work for the school Board. That Board had a con tract with the bus company for the operation of the school buses and the Man in question was an employee of the company. So the court ruled that he did not have an interest in the contract within the meaning of the word interest As used in the stat Ute. The court also ruled that the right to serve in a Public office is a valuable and important one in a democratic society and that it could not be taken away from anybody except if done in the clearest and most unambiguous language. Any doubt about the meaning intended in the statute had to be re solved in favor of allowing the elected person to continue in office. That s the Law. Don t take your storm windows off. Let us do it and you la never have to do it again. Picture windows aluminium windows if aluminium doors if awnings. All colors order now. Free estimates 667.3502 or 667.5078. 79 industries 1964 Ltd. 730 Maun Avenue Feudal setup ended Addis Ababa a Ethiopia s six month old military government took its biggest step toward socialism tuesday by abolishing huge private estates Banning the use of hired labor on farms and forbidding the Sale of Rural land. In a sweeping proclamation aimed at destroying years of feudalism the provisional military administrative Council placed All Rural land under state ownership. Ancient sharecropper sys tems requiring peasants to pay 75 per cent or More of their Harvest to Absentee landlords were declared void. Land allotments were announced of up to 25 acres for individuals up to acres for Village co operatives and larger holdings for District co operatives. Present owners Are to be compensated for build Ings but not land. Land Reform is the key to government plans to promote Equality and Opportunity for ethiopians and to erase traditional divisions of tribe Reli Gion and class. The military Council previously nationalized More than 100 industries Banks and businesses. Independent observers be Lieve the government s Fate rests largely on its ability to control a month old secessionist guerrilla flare up in Eri trea province and to carry out land Reform peacefully. There already Are signs of opposition to land Reform. Reliable sources said some soldiers who defected from the military movement were distributing arms about 55 Miles from Addis Ababa to opponents of the land plan. Some Farmers were reported armed and patrolling their holdings on horse Back against possible direct military intervention. Two aristocrats have taken to the Hills near the capital to carry out raids against govern ment forces. Brothers Mesfin and Merid Biru were among Ethiopia s strongest landlords. Under deposed emperor Haile Selassie 15.6 million per per cent of the popu tenants to a few aristocrats who owned 24 per cent of the country. The government estimates that about 60 per cent of the land mostly in the North was owned communally by about seven million ethiopians. The remaining 16 per cent including whole River valleys and Large sections of provinces was held by the emperor and his relatives. Individuals and businesses now Are barred from owning land outright. Peasants and former landlords will be allot Ted land on condition that they farm it themselves. Millions of nomads will be assigned their Normal grazing territories in the North and East. All Feudal debts and land lord tenant agreements Are ended immediately including traditional payments to tribal chiefs. A special judicial com Mittee will be formed by pea Sant associations to hear land cases. S. African Blacks get better Deal Johannesburg South Africa a City officials say there have been no racial incidents since africans were allowed to mix with Whites in Public Parks libraries museums the Art gallery and zoo a year ago. Francois Oberholzer chair Man of the City Council s management committee said we have had about two dozen complaints from Whites in protest against the City s measures to give the Blacks a better they represent a very Small percentage of the City s White Oberholzer released figures recently showing that since the Whites Only signs were re moved a total of Afri cans have used the City s nine reference libraries while 4.462 joined lending libraries. Large province Ottawa the province of Quebec is equal to almost one third of the area of the entire Dominion of Canada. Knit shirt values i is v ii of a a Ali m re v -4s Vil ,1 disc to if co a r f re r ii save on fashionable Paulo Conti knit shirt a. 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