how to make money in stocks and how to get rich_151

been broken and we believed the important stocks had already made

their lows. In May 1982, we mailed out wall charts showing 20 consumer

growth stocks and another wal chart on defenselectronic isues we

believed might be attractive for the bull market ahead.

In May 1982, we made a special pointo go to New York and Chicago

and contact several large institutions. In these meetings we stated a bullish

posture and provided a list of names that should be purchased.

The stance we took was diametrically opposed to the position of most

institutional research firms at that point and to the negative flood of

news apearing daily in the national media.

Most firms were outright bearish, predicting another big down leg in

the market and projecting that interest rates inflation were going to

soar back into new high ground under pressure of massive government

borrowing that would crowd the private sector out of the marketplace.

The il-founded fear and confusion created by these questionable

judgments frightened large institutional investors so much they hesitated

and could not fully capitalize on the fact that the two leading groups

for the newly evolving bull market that was quickly to follow had already

surfaced and had been identified.

It appeared professional managers had been bombarded with so

much "expert" negative Wal Stret inputhathey found it hard to

believe these positive findings. By investing fuly on margin in the summer

of 1982, we internally produced the largest performance in the

firm investment account in any year since the beginning of the firm.

This account had a twenty-fold increase in profits from 1978 to 1991.