It has been an old and sound principle that those who can't afford to take risks should be content with a relatively low return on their invested funds. From this there has developed the general notion that the rate of return which the investor should aim for is more or less proportionate to the degree of risk he is ready to run.Our view is different. The rate of return sought should be dependent, rather on the amount of intelligent effort the investor is willing and able to bring to bear on his task. The minimum return goes to our passive investor, who wants both safety and freedom from concern. In many cases, there may be less real risk associated with buying a bargain issue offering the chance of a large profit than with a conventional bond purchase yielding about 4.5% . This statement had more truth in it than we ourselves suspected, since in subsequent years even the best long-term bonds lost a substantial part of their market value because of the rise in interest rates.The another personal psychological factor is that enterprising investor, by definitionm, will devote a fair amount of his attention and efforts towards obtaining a better than run-off-the investment result. In our discussion of general investment policy, we has made some suggestions regarding bond investments that are addresses to the enterprising investor as below: Tax-free new housinng authority bonds effectively guaranteed by the governments, taxable but high-yield new community bonds, also guaranteed by the governments, and tax -free industrial bonds issued by municipalities, but serviced by lease payments made by strong corporations. On number analytical methods aspect, it may include industry analysis, because the general prospects of the enterprise carry major weight in the establishment of market price, it is natural for the security analyst to devote a great deal of attention to the economic position of the industry and of the individual company in itsindustry. Studying these companies' past financial position, they are sometimes productive of valuable insights into important factors that will be operative in the future and are insufficiently appreciated by the current market. Where a conclusion of that kind can be drawn with a degree of confidence, it affords a sound basis for investmentdecisions.Our own observation, however leads us to minimum somewhat the practical value of most of the industry studies that are made available to investors. The material developed is ordinarily of a kind with which the public is already fairly familiar and that has already considerable influence on market quotations. Rarely does one find a brokerage-house study that points out, with a popular industry is heading for a fall or that an unpopular one is due to prosper. For example, Wall street's view of the longer future is fallible and this necessarily applies to that importanr part of its investigations which is directed towards the forecasting of the course of profits in various industries.ON predicting growth stock investing style hand, growth companies have above average-growth rates of sales and/or earnings. Growth investors are willing to pay high multiples of earnings for companies with high growth rates, which explains why growth stocks generally have high P/E multiples.