The Lemley Letter



Final Print Edition

June 1983 to June 2004

Greetings:June 21, 2004

This is the final issue of the print edition of The Lemley Letter. We began writing the letter 21 years ago this month. For a number of years it was a monthly and after our partner Don Yarling died in 1994 we eventually went to a Seasonal (four times a year) format.

With the advent of the computer and cell phone and instant communications as well as The Lemley Letter website we have reached the conclusion that now is the time to fold the snail mail edition.

The world has changed since we first began the letter and so have the markets. There are many more investment products and speculative tools. We have stayed with the tried and true, common stocks and Treasuries, and we are too old to change our investment tools now.

Nor would we want to since our investing formula has served us well. Since we began The Model Portfolio in December 1983 it has grown from a value of $50,000 to a present value exceeding $530,000. Our record speaks for itself.

Past performance is not an indication of future performance.

We plan on continuing our management of funds in the same manner as we have in the past. The world and investment alternatives may have changed but greed and fear remain the primary movers of individual stocks and overall markets. We will continue to try and profit from the inconsistencies these two emotions engender in the marketplace.

We invite you to read past letters posted on the website. And we invite you to continue to visit our website at www.lemleyletter.com to read the daily comments.

Sincerely:

Bud Lemley and Kathy Pinto

The market value of the Model Portfolio is net of advisory fees, brokerage commissions and other related expenses.  Model Portfolio results reflect reinvestment of dividends and other earnings.  The Model Portfolio column is the overall return of the portfolio for the periods shown.  The S & P 500 is an unmanaged S & P composite of 500 stocks widely regarded as representative of the stock market in general.  Unless otherwise indicated, index results include reinvested dividends and do not reflect sales charges.

 Past performance is not indicative of future results. Other methods may produce different results for individual portfolios and for different periods and may vary depending on market conditions and the composition of an individual portfolio. Care should be used when comparing these results to those published by other investment advisors, other investment vehicles and unmanaged indices due to possible differences in calculation methods. A list of all recommendations made by Lemley, Yarling Management Co. for the preceding one-year period is available to advisory clients upon request.

Winter 2004
Autumn 2003
Summer 2003
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Summer 2002
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Summer 2001
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Winter 2001
15624 Lemley Drive Soldiers Grove, Wi 54655 312-925-5248
The factual statements herein have been taken from sources we believe to be reliable but such statements are made without any representation as to accuracy or completeness or otherwise. From time to time the Lemley Letter, or one or more of its officers or employees, may buy and sell as agent the securities referred to herein or options relating thereto, and may have a long or short position in such securities or options. This report should not be construed as a solicitation or offer of the purchase or sale of securities. Prices shown are approximate. Past performance is no indication of future performance.