For the quarter ended September 29, and for the nine-month period ending on that date, the composite returns of accounts managed by WP&M were spectacular.

However, prior to reading these returns (next paragraph), readers should look back at other quarterly reports listed on this web site to see that returns for other periods were not spectacular, that high returns in one period do not forecast high returns in subsequent periods, and that statistical presentations are arbitrary and capricious. Wealth Planning&Management does not strive to earn business through statistical presentations. Instead, we earn business by developing personal relationships that take into account clients' entire net worth, and various methods to improve net worth, including savings and tax-reduction techniques.

For the nine months, the cumulative size-weighted composite return of all accounts, not annualized, was 8.51 %, compared to - 2.23 % for the S&P 500 Index. For the quarter, the composite return was 3.82 %, not annualized, compared to - 1.24 % for the S&P 500 index. These are the highest spreads between client returns and index returns ever earned by WP&M.

A serious student must look deeper to determine why these numbers look good. An evaluation might include review of the entire list of 52 accounts managed by WP&M. Such a review will show that some accounts did very well, while others experienced normal or average results. The differences between accounts arise from different objectives, different mixes of stocks and bonds, different purchase dates of specific securities, and different concentrations. In most cases, the performance of only one or two stocks makes the difference between "normal" and "spectacular."

At the end of the quarter, WP&M was managing $21,619,000 representing wealth of 29 different families. The number of accounts was up from 47 at the end of the first quarter.

JWG

10/26/00