The Winter 2004 Lemley Letter took a vacation this year. Hopefully there will be a Spring 2004 Lemley Letter. Until then please keep reading the daily postings at www.budlemley.com for our thoughts.

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.