Book Review THE A.B.C. OF INVESTMENT

Press, Volume XCVIII, Issue 28981, 24 August 1959, Page 16

Book Review THE A.B.C. OF INVESTMENT

New Zealand Investment Guide. By E. C. Marris. N.Z. Financial Times Company, 101 pp. Index.

The appearance of this bonk: is a symptom of the increase in the numbers of small investors' in New Zealand in recent years.. Written mainly for the novice, it might usefully be chosen as the| tyro's first "investment." A journalist primarily, Mr' Marris writes lucidly and shuns; expertise. It is a reasonable] assumption that anyone who has; accumulated enough money to consider investing it has sufficient intelligence to master the principles outlined in this manual. His chapters on how the share] market operates (the first in the book), how to read a balance; sheet, and the significance of yield and ratios, are admirable.! The chapter on Government! stock and local body debentures is not up to the same standard. Mr Marris might have emphasised the distinction between buying these securities at the time they are issued, and buying them on the open market, usually at more advantageous rates. The instances quoted of prices and yields on securities of these classes are, not surprisingly, months out of date; the date of purchase should have been stated and more mention made of the factors affecting price and yield. One or two other subjects which definitely belong in a “complete handbook for investors” (as this slim volume claims to be) have been treated inadequately or omitted entirely. Should a New Zealand investor buy Australian and other overseas companies’ shares? What are the restrictions on such dealings? What has been the performance of New Zealand share portfolios —both in yield and in capital gain in recent years?

These questions might be considered as “stage 2” level, whereas most of the chapters in Mr Marris's book treat the “stage 1” topics. Equally competent treatment of the more advanced theory of investment would also fill a need in New Zealand. Mr Marris is editor of the monthly financial journal published by the' N.Z. Financial Times Company and advertised in the last page of his book. This threefold mention of the journal was surely sufficient, without the occasional reference in the text.— N.L.M.