Common Stocks As Long Term Investments

Edgar Lawrence Smith, (1882-1971) was an economist, investment manager and author of the influential book "e;Common Stocks as Long Term Investments"e;, which promoted the then-surprising idea that stocks excel bonds in long-term yield. . He worked in banking and other financial endeavors in the years after college, then signed on in 1922 as an adviser to the brokerage firm Low, Dixon & Company. While there, he later recounted in his Harvard class's 50th reunion yearbook, "e;I tried to write a pamphlet on why bonds were the best form of long term investment. But supporting evidence for this thesis could not be found."e; This discovery led to the 1924 publication of "e;Common Stocks as Long Term Investments."e; The book was widely reviewed and praised, and became a key intellectual support for the 1920s stock market boom. Its success enabled Smith to launch a mutual fund firm, "e;Investment Managers Company."e; It also garnered him an invitation from the economist John Maynard Keynes, who had favorably reviewed the book in "e;The Nation"e;, to join the Royal Economic Society. The Wall Street Crash of 1929 brought a turn in Smith's fortunes.-Print Ed.