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Common Stocks as Long Term Investments

Common Stocks as Long Term Investments

Hardcover

EconomicsInvesting & Finance

ISBN10: 1025562224
ISBN13: 9781025562223
Publisher: Tradd Street Press
Published: Feb 14 2026
Pages: 144
Weight: 0.84
Height: 0.38 Width: 6.14 Depth: 9.21
Language: English
Common Stocks as Long Term Investments is a foundational work in modern financial theory and investment strategy. Written by Edgar Lawrence Smith, this influential study challenges the conventional wisdom of the early 20th century by providing a rigorous, data-driven analysis of the performance of equity securities compared to high-grade bonds. Through a series of detailed tests covering various historical periods, Smith demonstrates that a diversified portfolio of common stocks consistently provides superior returns and greater protection against the diminishing purchasing power of currency.

The work explores the inherent advantages of stock ownership, emphasizing the role of retained earnings and the compounding effect of reinvested profits. Smith's insights laid the groundwork for the shift in investment philosophy that transformed common stocks from speculative ventures into essential components of a prudent long-term portfolio. Investors, economists, and historians will find this text to be a compelling exploration of market behavior and the fundamental principles of wealth accumulation.

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Investing & Finance