Hope directed the purchase of convertible securities on this principle: Select good ones; avoid time bargains, which introduce a distinct element of risk; and buy largely at every panic not founded on a permanent reason or out of proportion.
Example: A great district bank broke.

The shares of a great district railway went down thirty per cent.

Hope bade his employer and pupil observe that this was rank delusion, the dividends of the railway were not lowered one per cent.

by the failure of that bank, nor could they be: the shareholders of the bank had shares in the railway, and were compelled to force them on the market; hence the fall in the shares.
"But," said Hope, "those depreciated shares are now in the hands of men who can hold them, and will, too, until they return from this ridiculous 85 to their normal value, which is from 105 to 115.

Invest every shilling you have got; I shall." Bartley invested L30,000, and cleared twenty per cent.