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The another personal psychological factor, is that defensive investor psychological investment factor, the basic characteristics of an investmentportfolio are usually determined by the position and characreristics of the owner or owners. At one extreme, we have had savings banks, life insurance companies, andso-called legal trust funds for our saving methods. A generation ago their investments were limited by law in many states to high grade bonds and in some cases, high-grade preferred stocks. At the other extreme we have the well -to-do and experienced businessman, who will include any kind of bond or stock in his securitylist provided he considered it an attractive purchase.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 associatedwith 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 obtaininga 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:

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