FOR SALE & EXCHANGE www.trading-software-collection.com Subscribe for FREE download more stuff Mirrors: www.forex-warez.com www.traders-software.com Contacts andreybbrv@gmail.com andreybbrv@hotmail.com andreybbrv@yandex.ru Skype: andreybbrv ICQ: 70966433 SUPERMONEY INTRODUCING WILEY INVESTMENT CLASSICS There are certain books that have redefined the way we see the worlds of finance and investing—books that deserve a place on every investor’s shelf Wiley Investment Classics will introduce you to these memorable books, which are just as relevant and vital today as when they were first published Open a Wiley Investment Classic and rediscover the proven strategies, market philosophies, and definitive techniques that continue to stand the test of time SUPERMONEY ‘ADAM SMITH’ JOHN WILEY & SONS, INC Copyright © 1972 by ‘Adam Smith’ All rights reserved Foreword copyright © 2006 by John Wiley & Sons, Inc All rights reserved Preface copyright © 2006 by ‘Adam Smith’ All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada Originally published in 1972 by Random House No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 7504470, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our web site at www.wiley.com ISBN-13 978-0-471-78631-3 ISBN-10 0-471-78631-4 Printed in the United States of America 10 For Mark O Park and Susannah B Fish CONTENTS Foreword Preface I SUPERMONEY Metaphysical Doubts, Very Short Liquidity: Mr Odd-Lot Robert Is Asked How He Feels Supermoney, Where It Is: The Supercurrency I I T H E D AY T H E M U S I C ALMOST DIED ix xxvii 15 29 The Banks June 1970 The Brokers September 1970 50 III THE PROS 67 Nostalgia Time: The Great Buying Panic An Unsuccessful Group Therapy Session for Fifteen Hundred Investment Professionals Starring the Avenging Angel 31 69 78 vii CONTENTS Cautionary Tales Remember These, O Brother, in Your New Hours of Triumph 95 How My Swiss Bank Blew $40 Million and Went Broke 110 Somebody Must Have Done Something Right: The Lessons of the Master 171 I V I S T H E S Y S T E M B L O W N ? The Debased Language of Supercurrency Co-opting Some of the Supercurrency Beta, Or Speak to Me Softly in Algebra Well, Watchman, What of the Night? Arthur Burns’s angst; Thirteen Ways of Looking at a Blackbird; Prince Valiant and the Protestant Ethic; Work and Its Discontents; Will General Motors Believe in Harmony? Will General Electric Believe in Beauty and Truth? Of the Greening and Blueing, and Cotton Mather and Vince Lombardi and the Growth of Magic; and What Is to Be Done on Monday Morning SOME NOTES Table I: Sector Statements of Saving and Investment: Households, Personal Trusts, and Nonprofit Organizations II Table II: Funds Raised, Nonfinancial Sectors III Table III: The Runoff in Commercial Paper; Summer 1970 IV Portfolio of the University of Rochester 199 201 215 223 235 287 I viii 291 293 294 295 SUPERMONEY honor purposiveness In his remarkable and extraordinary essay “The Economic Possibilities for Our Grandchildren,” Keynes wrote: Purposiveness means that we are more concerned with the remote future results of our actions than with their own quality or their immediate effects on our own environment The “purposive” man is always trying to secure a spurious and delusive immortality for his acts by pushing his interest in them forward into time He does not love his cat, but his cat’s kittens, nor, in truth, the kittens, but only the kittens’ kittens, and so on forward for ever to the end of cat-dom For him jam is not jam unless it is a case of jam tomorrow and never jam today Thus by pushing his jam always forward into the future, he strives to secure for his act of boiling it an immortality It may be that the era of purposiveness, with its inherent dictum of sacrifice is winding down, however slowly That does not mean another era of something else is immediately at hand The counter-culture may not be a proper guide to the future because it is defined by its opposition; it is easier to describe what it is against than what it is for But it may serve to stimulate some sort of synthesis, to make us broaden the idea of what is “rational,” to help crack the consensus Long before the term “counter-culture” came to be bandied, Keynes had delineated the lopsidedness of the accumulative society “We have been trained too long to strive,” he said, “and not to enjoy.” Perhaps in a hundred years, he wrote—a hundred years from 1931, that is—the chief problem of mankind would be to live agreeably and wisely and well What would bring us to that point? Science and compound interest, incremental technology and accruing wealth Some of the members of our affluent and post-affluent society are already into that spirit, as we have seen 284 ‘ADAM SMITH’ But alas, our views of both science and compound interest are changing Science is no longer the unmitigated good the late Victorians saw, the radio added to Pasteur added to the electric light added to the steam engine There is even some doubt about how incremental scientific growth is: in The Structure of Scientific Revolutions, Thomas Kuhn argues that each generation of scientists rewrites its textbooks to make everything a continuous flow And as for compound interest—well, Keynes did say, in a phrase usually overlooked, “assuming no important wars and no important increase in population.” Compound interest does not solve our economic problems if population compounds faster, because per capita is our divisor Unexpected turns in the road have a way of materializing; it was only a generation ago that some of our industrial societies were worried about how to get the birth rate up If we could indeed count on the cushion of science and compound interest, then indeed we could look forward to the day when (Keynes again) “there will be great changes in the code of morals All kinds of social customs and economic practices, affecting the distribution of wealth and of economic reward and penalties, which we now maintain at all costs, however distasteful and unjust they may be in themselves, because they are tremendously useful in promoting the accumulation of capital, we shall then be free, at last, to discard.” But what we on Monday morning? All of these exercises come under the perilous heading of long-term expectations, and we know that the long-term investor must seem—Keynes again—“eccentric, unconventional and rash in the eyes of average opinion.” If the long-term investor succeeds, that confirms the belief in his rashness, and if he does not, “he will not receive very much mercy Worldly wisdom teaches that it is better for 285 SUPERMONEY reputation to fail conventionally than to succeed unconventionally.” Meanwhile: Avarice and usury and precaution must be our gods for a little longer still For only they can lead us out of the tunnel of economic necessity into daylight If we are left with capital and not community, we still have to our best to make our garden grow Even the Enlightened One said that some hours must be spent in chopping wood and carrying water But it would be folly not to be aware, even for parochial purposes, of the changes going on around us, and that awareness is not a traditional sensitivity in the rational preciseness of a game played with numbers Meanwhile the mechanism and the structure of the markets in which our game is played have survived The currency and the Supercurrency are still there Maybe some of the players have gotten a little heavier All of us have to make choices on the uses of our energies; some things are as they are and not as they ought to be, but this is the way the world is If you are still for the Game, why, may you prosper; I wish you the joys of it 286 Some Notes T HERE are no footnotes in this book That makes for occasionally bumpy sentences Try working “according to the August, 1971, issue of the Bulletin of the Federal Reserve Bank of New York” into a smooth sentence sometime As a great deal of time went by and it was possible to walk through much of the research, all in waist-high piles of manila folders all over the room, the footnote thought occurred and we called the publisher What about footnotes? “How many pages of footnotes?” said the good publisher We thought we could get it all in under a hundred pages “A hundred pages of footnotes?” We thought maybe we could get it down to seventy-five or eighty, and use small type “Eighty pages of footnotes?” What was the matter with that? 289 SUPERMONEY “Well, this book will be in the stores, and what if somebody comes in and picks it up and opens it from the back! We want him to buy the book, you know.” Well, could we have two editions, one with footnotes? The publisher took on the tone publishers take with their children and their authors: weary, soothing, and menacing at the same time “Just go back to work, eh? And we’ll worry about this another time.” So: All the citations are in place If there is no citation, the source can be assumed to be The New York Times, The Wall Street Journal, or firsthand first-person interviews I have a considerable debt, gratefully acknowledged, to the writings of John Maynard Keynes, both in the General Theory and in Essays Thanks also go to: the front side of the third floor at 50 Memorial Drive in Cambridge, which houses some of MIT’s interested and sympathetic economists; to Colyer Crum and Tony Athos of the Harvard Business School; to Daniel Bell, chairman of the Department of Sociology at Harvard University; to Daniel Yankelovich; to Robert Heilbroner; to Bennett Kremen; to David Norr; to Don Hessler and Bert Tripp of the University of Rochester; to Felix Rohaytn and Bill Donaldson; to some former colleagues, who could be eyes and ears, including but not limited to John Thackray, and particularly Chris Welles; Barbara Munder and Julie Rohrer helped with the research, and Mrs Rohrer ably did a number of interviews too 290 291 10 11 12 13 14 15 16 17 18 19 20 21 22 23 + NONTAXES + EQUIP + CR MKT INSTR (1) + CURRENCY (1) Excludes Corporate Equities AT SAVINGS INSTITUTIONS AT COMMERCIAL BANKS SAVINGS ACCOUNTS DEMAND DEPOSITS DEPOSITS NET ACQ OF FINAN ASSETS NET FINAN INVESTMENT NONPROFIT PLANT CONSUMER DURABLE GOODS RESIDENTIAL CONSTRUCTION CAPITAL EXPEND (NET OF SALES) GROSS INVESTMENT = DISPOSABLE PERS INCOME LESS: PERSONAL OUTLAYS = PERSONAL SAVING, NIA BASIS + CREDITS FROM GOVT INSUR + CAPITAL GAINS DIVIDENDS + NET DURABLES IN CONSUMPTION = NET SAVING + CAPITAL CONSUMPTION = GROSS SAVING LESS: PERSONAL TAXES PERSONAL INCOME 1961 538.9 65.7 473.2 444.8 28.4 4.8 14.8 49.0 59.9 108.8 113.7 89.6 19.1 66.3 4.1 24.1 54.3 39.3 7.9 28.0 14.9 13.2 587.2 75.4 511.9 479.3 32.5 5.2 1.3 15.2 54.2 64.3 118.5 126.7 94.2 18.9 70.8 4.5 32.5 56.1 40.5 2.6 20.5 13.2 7.3 629.3 83.0 546.3 506.0 40.4 5.4 1.7 12.4 59.8 69.9 129.8 131.9 94.6 17.0 73.1 4.5 37.3 61.0 46.8 11.1 34.8 18.1 16.7 688.9 97.9 591.0 551.2 39.8 6.0 2.5 16.7 64.9 77.2 142.0 143.5 109.7 21.1 84.0 4.5 33.8 68.6 55.8 12.6 30.4 17.4 13.0 750.3 116.2 634.2 596.3 37.9 6.6 2.5 15.5 62.6 84.8 147.4 143.3 116.7 21.6 89.9 5.1 26.6 57.6 43.7 3.5 6.1 −1.9 8.0 803.6 115.9 687.8 633.7 54.1 9.2 8.4 72.6 91.2 163.7 171.5 112.9 18.9 88.6 5.3 58.6 80.0 61.5 6.1 44.5 27.6 17.0 Net Annual Flows 1963 1964 1965 1966 1967 1968 1969 1970 HOUSEHOLDS, PERSONAL TRUSTS, AND NONPROFIT ORGANIZATIONS 1962 400.9 416.8 442.6 465.5 497.5 50.9 52.4 57.4 60.9 59.4 350.0 364.4 385.3 404.6 438.1 333.0 343.2 363.7 384.6 411.9 17.0 21.2 21.6 19.9 26.2 3.3 3.5 3.6 3.7 4.2 5 5.1 2.9 6.7 8.9 11.2 25.8 28.0 32.4 33.0 42.1 46.3 47.8 49.8 52.4 55.9 72.1 75.8 82.2 85.4 98.0 75.9 80.9 85.8 92.5 103.0 67.8 64.7 71.5 76.3 82.2 19.7 17.6 18.7 19.0 19.3 45.3 44.2 49.5 53.9 59.2 2.8 3.0 3.2 3.4 3.7 8.1 16.2 14.3 16.2 20.8 25.9 33.1 35.3 43.3 48.9 17.3 22.8 26.1 33.8 36.1 2.6 3.6 4.5 11.4 16.5 25.7 24.6 27.4 1.8 5.4 12.6 9.5 11.6 9.6 11.2 13.1 15.1 15.8 1960 TABLE I SECTOR STATEMENTS OF SAVING AND INVESTMENT (BILLIONS OF DOLLARS) 857.0 115.8 741.2 680.7 60.5 9.8 17.0 88.0 95.1 183.1 176.6 130.7 24.7 100.5 5.4 45.9 90.7 70.5 8.5 73.5 32.7 40.8 1971 10 11 12 13 14 15 16 17 18 19 20 21 22 23 292 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 DISCREPANCY MISCELLANEOUS TRADE DEBT SECURITY CREDIT OTHER LOANS BANK LOANS N.E.C OTHER CONSUMER CREDIT INSTALLMENT CONS CR OTHER MORTGAGES HOME MORTGAGES CREDIT MKT INSTRUMENTS NET INCREASE IN LIABILITIES MISCELLANEOUS SECURITY CREDIT NET INV IN NONCORP BUS PENSION FUND RESERVES LIFE INSURANCE RESERVES OTHER CORP SHARES INVESTMENT CO SHARES COMMERCIAL PAPER MORTGAGES CORPORATE AND FGN BOND STATE AND LOCAL OBLIG U.S GOVT SECURITIES CREDIT MKT INSTRUMENTS 5.5 3.5 2.0 −.2 1.5 −1.9 3.2 8.4 −3.3 17.8 17.7 10.8 3.7 9 −.1 * −3.8 1960 1962 Net Annual Flows 1963 1964 1965 1966 1967 1968 1969 1970 1971 HOUSEHOLDS, PERSONAL TRUSTS, AND NONPROFIT ORGANIZATIONS −.6 5.5 3.7 4.2 3.4 17.5 12.9 34.1 10.8 −11.5 24 −.5 3.9 −.4 2.0 4.1 12.1 −4.4 −22.6 25 1.7 8.4 −.2 8.4 1.5 1.4 −1.0 2.3 2.0 4.9 26 1.7 3.7 −1.7 −.3 −.1 −.6 7.6 27 1.9 4.8 4.8 5.7 12.5 1.7 −.8 1.0 1.3 1.8 2.0 2.2 2.4 28 −.2 * 2.4 * 5.9 −1.8 −3.9 29 * 2.2 −2.7 1.9 4.7 1.8 5.7 1.2 2.4 1.9 1.1 30 3.1 3.7 2.6 −1.5 −3.9 −4.0 −1.9 −5.1 −4.7 −6.8 −12.3 −9.6 −5.1 −6.5 31 3.4 4.5 3.7 4.9 4.1 5.2 4.3 6.6 32 4.8 4.6 5.0 8.8 9.1 9.7 10.9 12.3 14.4 14.4 15.4 15.8 19.5 20.2 33 −2.9 −2.1 −2.1 −3.1 −1.9 −3.5 −3.6 −2.0 −4.3 −5.6 −3.7 34 −.5 −.1 * * 35 −.8 * * 1.1 1.8 2.1 2.6 2.4 36 1.3 1.2 1.5 16.9 21.0 27.1 28.1 30.2 23.6 23.7 34.8 31.0 21.4 44.7 37 15.3 20.8 24.8 27.9 28.8 23.2 19.7 31.9 32.6 22.3 41.6 38 10.9 12.7 14.8 16.0 15.2 12.3 10.5 14.9 16.2 12.5 24.5 39 1.1 1.0 1.3 1.0 1.4 1.0 1.4 40 1.2 1.3 1.2 9.0 4.8 8.3 6.8 3.0 7.2 8.4 41 8.6 6.2 3.4 2.1 1.0 1.0 1.2 1.3 1.3 2.1 42 1.4 1.0 1.2 2.1 3.1 2.8 1.5 1.4 3.9 43 1.4 1.7 3.0 2.6 1.3 44 2.0 1.3 2.1 45 −.2 −.2 3.3 −.1 2.1 −2.5 −1.9 2.0 1.3 6 46 4 47 6.4 48 4.1 −7.7 −5.1 −3.6 −7.1 −5.0 −4.8 −8.2 −2.1 −1.4 1961 TABLE I (continued) 293 46.9 7.2 39.6 13.7 16.3 4.6 2.8 5.1 3.8 5.5 1.6 2.5 54.1 7.0 47.1 15.6 18.4 4.6 0.6 6.1 7.1 5.8 5.2 2.1 1962 57.7 4.0 53.7 18.3 19.4 3.9 −0.2 6.7 9.0 6.1 6.5 3.4 1963 66.9 6.4 60.5 20.1 21.7 4.0 1.6 5.9 10.2 6.0 7.8 4.9 1964 *Not including mortgage debt Source: Board of Governors, Federal Reserve System of the United States Total U.S Gov’t & Agencies All Others: Total Resid Mortgage Business Bonds Equity Mortgage Other Loans State & Local Govts Household* Foreign 1961 70.4 1.7 68.7 18.9 29.6 5.4 −0.3 6.6 17.9 7.6 10.0 2.6 1965 68.5 3.5 64.9 14.5 33.8 10.2 1.2 7.8 14.6 6.4 8.7 1.5 1966 TABLE II FUNDS RAISED, NONFINANCIAL SECTORS (1961 TO 1971) Billions of Dollars 83.5 13.0 70.5 15.2 37.9 14.7 2.3 6.8 14.1 8.8 4.5 4.1 1967 96.9 13.4 83.5 18.7 38.8 12.9 −0.7 8.7 18.0 9.9 13.1 3.0 1968 90.4 −3.6 94.1 20.5 49.7 12.1 4.8 7.4 26.0 8.5 11.6 3.7 1969 97.5 12.8 84.7 18.7 48.3 20.3 6.8 7.2 13.8 12.2 3.0 2.6 1970 294 Total Level Change +534 39,540 −2,426 37,114 +16 37,130 −703 36,427 +582 37,009 +522 37,531 −492 37,039 +272 37,311 −173 37,138 +81 37,219 −1,180 36,039 −169 35,870 −585 35,285 +108 35,393 33,924r −1,469r +247 34,171 Bank Related† Level‡ Change 6,509 +161 6,383 −126 −46 6,337 6,461 +124 6,745 +284 +39 6,784 6,593 −191 6,765 +172 6,548 −217 −93 6,455 5,801 −654 5,470 −331 4,647 −823 4,454 −193 4,081 −373 3,679 −402 Other# Total Bank Related† Level Change Level‡ Change Level Change −88 +47 12,750 −41 1,044 13,794 −50 11,868 −882 12,862 −932 994 −31 11,743 −125 12,706 −156 963 −20 11,302 −441 12,245 −461 943 +20 11,177 −125 12,140 −105 963 +73 +23 11,250 +96 12,236 986 −27 11,126 −124 12,085 −151 959 +40 −8 11,166 +32 12,117 951 −22 +31 11,144 +9 12,126 982 +72 12,018 −108 802 −180 11,216 −75 11,446 +230 12,173 +155 727 −31 11,587 +141 12,283 +110 696 +78 −58 12,225 560 −136 11,665 −18 11,884 +219 12,426 +201 542 −37 12,013 +129 +92 12,518 505 −28 12,367 +354 12,844 +326 477 Total Level Change +575 25,746 −1,494 24,252 +172 24,424 −242 24,182 +687 24,869 +426 25,295 −341 24,954 +240 25,194 −182 25,012 +189 25,201 −1,335 23,866 −279 23,587 −527 23,060 −93 22,967 21,406r −1,561r −79 21,327 DIRECTLY PLACED PLACED THROUGH DEALERS Other# Level Change +414 19,237 −1,368 17,869 +218 18,087 −366 17,721 +403 18,124 +387 18,511 −150 18,361 +68 18,429 +35 18,464 +282 18,746 −681 18,065 −52 18,117 +296 18,413 +100 18,513 17,325r −1,188r +323 17,648 *Includes documented discount notes or any other commercial paper that is accompanied by an irrevocable letter of credit † Includes paper placed for bank holding companies, affiliates of bank holding companies, and other affiliates of banks ‡ Distribution of bank related paper between dealer placed and directly placed is partially estimated #Totals are partly estimated Note: Figures are preliminary and are subject to revision Also, the figures are not adjusted for seasonal movements, and caution should be exercised in interpreting intrayearly fluctuations r = Revised Source: Federal Reserve Bank of New York Week ended Wednesday June 24 July 15 22 29 Aug 12 19 26 Sept 16 23 30 Oct TABLE III THE RUNOFF IN COMMERCIAL PAPER:* SUMMER 1970 (IN MILLIONS OF DOLLARS—NOT SEASONALLY ADJUSTED) (FEDERAL RESERVE BANK OF NEW YORK ONLY) ‘ADAM SMITH’ Portfolio of the University of Rochester THE CLASSIC HIGH-GROWTH APPROACH: THE UNIVERSITY OF ROCHESTER This approach says, “You never sell the good ones.” As of December 31, 1971, the investments of the university were as follows: Book Value* $19,150,650 500,000 148,000 2,108,394 16,394,256 % 10.3 0.3 1.1 8.8 Market Value $19,103,152 501,875 146,520 2,115,819 16,338,938 % 4.3 3.7 3,689,735 2.0 5,060,237 1.1 Leaseholds Mortgages Oil Royalties 14,143,662 1,225,764 13,408 12,904,490 7.6 6.9 14,143,662 1,225,764 13,408 12,904,490 3.2 2.9 BANK BALANCES 5,431,243 2.9 5,431,243 1.3 9,256,580 5.0 8,384,866 1.9 BONDS Government & Agency Canadian & Foreign Utility Industrial CONVERTIBLE SECURITIES SPECIAL INVESTMENTS FUNNY MONEY † COMMON STOCKS Telephone Industrial Bank FUNDS IN TRUST 134,507,075 4,745,958 129,299,192 461,925 $186,178,945 5,086,827 $191,265,772 72.2 2.5 69.4 100% 391,397,248 6,675,000 382,769,748 1,952,500 $443,520,408 88.2 1.5 86.3 100% 9,711,222 $453,231,630 *Cost of securities now held, not historical book value of endowment † “Funny Money” is Rochester’s long-shot account for small companies Xerox first appeared in “Funny Money” in 1950 295 SUPERMONEY Portfolio of the University of Rochester (continued) The University of Rochester has broken its portfolio into “per share” units to facilitate comparisons with other institutions The unitized record is as follows: Value Per Share December 31, 1957 December 31, 1958 December 31, 1959 December 31, 1960 December 31, 1961 December 31, 1962 December 31, 1963 December 31, 1964 December 31, 1965 December 31, 1966 December 31, 1967 December 31, 1968 December 31, 1969 December 31, 1970 December 31, 1971 296 $1.64 1.89 2.13 2.23 2.44 2.26 2.70 3.17 4.13 4.06 4.95 4.78 4.95 4.46 5.60 ‘ADAM SMITH’ Portfolio of the University of Rochester (continued) COMMON STOCKS Shares MISCELLANEOUS BUILDING 120,000 Masco Corporation 210,000 Ryan Homes, Inc 100,000 U.S Home Corporation 90,500 Wickes Corporation 50,000 Caterpillar Tractor Company 25,000 Standard Brands Paint Company 185,000 Sybron Corporation CONSUMER 65,000 Avon Products, Inc 50,000 Disney (Walt) Productions 82,000 Kresge (S.S.) Company 10,000 Levitz Furniture Corporation 100,000 McDonald’s Corporation 100,000 Penney (J C.) Corporation 95,000 Petrie Stores Corporation 100,660 Taylor Wine Company, Inc ELECTRONICS 19,400 Hewlett-Packard Company 39,750 Texas Instruments, Inc OFFICE EQUIPMENT 100,000 Automatic Data Processing, Inc 60,000 Burroughs Corporation 130,000 International Business Machines Corporation 485,000 Rank Organisation Ltd., ADR 899,330 Xerox Corporation PETROLEUM 210,000 Amerada Hess Corporation 160,000 Louisiana Land & Exploration Company PHOTOGRAPHY FINANCE 30,000 Lincoln First Banks, Inc 50,000 Security New York State Corporation 899,800 Eastman Kodak Company 100,000 Fuji Photo Film Company, Limited, ADR HEALTH CARE 79,500 Becton, Dickinson & Company 60,000 Merck & Company TELEPHONE 150,000 Rochester Telephone Corporation 297 About the Author “Everyone who is anyone in U.S investment knows ‘ADAM SMITH,’ ” wrote Newsweek While originally he had a fanatic following in the financial community, his reputation has now spread far beyond Professor Paul Samuelson, America’s first Nobel laureate in economics, called his book, The Money Game, “a modern classic.” 298 ... become the vehicle for what may well be the most successful investment program of all time The era of speculation described in The Money Game and in Supermoney began in the early 1960s and was pretty... investing And so, on September 24, 1974, out of all the hyperbole and madness of the Go-Go era and the Favorite Fifty era, and the travail of the great crash that followed, came the creation of the. .. be caught as they are, a thousand times over, by the same Snare, and while they yet remember their past Misfortunes, go on to court and encourage the Causes to which they were owing, and which