GENERAL

Many of the facts and information contained in this book were derived from the private files of the T. Rowe Price Group and interviews conducted by the author. These are not available to the public.

PRIVATE JOURNALS: For over forty years of his adult life, T. Rowe Price kept a journal. After his death six journal volumes were made available to the T. Rowe Price Group and quotes were used for a private corporate history written for the firm's fiftieth anniversary in 1987 but they were never published. They were also made available for an article, “The Diaries of T. Rowe Price,” published in the August 1987 issue of the now‐defunct Warfield's magazine, a semi‐monthly Maryland business periodical published from 1986 to 1991.All six journal volumes were lost over the intervening years. Recently, however, one of the journals, covering the years 1943–1950, was discovered, viewed by the author for this book, and is now privately held by T. Rowe Price Group.

A second important source for this book was The History of T. Rowe Price Associates, Inc. The author, Edmund L. Andrews, was a professional writer who later became an economics correspondent for the New York Times. He had access not only to Mr. Price's journals, but also to two of the founders, Charlie Schaeffer and Walter Kidd, as well as to all of their records and notes, which have also vanished over the years. The book was intended for the company's fiftieth anniversary in 1987, but was never published. Its 144 pages nevertheless contain a wealth of information about the firm's history.

Also important to this book were the more than twenty years the author spent at the firm, ten of these in close contact with Mr. Price. His positions included analyst; member of the investment committee of the Growth Stock Fund, the New Horizons Fund, and the New Era Fund; president of the Growth Stock Fund; and chief financial officer. Committees chaired were the Long‐Range Planning Committee and the Compensation Committee. After leaving T. Rowe Price, the author became a general partner of New Enterprise Associates, a venture capital partnership in which T. Rowe Price was an original limited partner. He held this position for twelve years before retiring.

PRIVATE CORPORATE PAPERS: Mr. Price was a prolific writer over the course of his investment career, including investment advisories for his clients and papers for his employees. Having spent twenty‐two years at the firm, the author has copies of a number of these papers. Copies of these client advisories and internal memos and papers are privately held by T. Rowe Price Group and were made available to the author.

ECONOMIC: General economic statistics are based on the author's research from outside sources, some of which are listed below in the sources for specific chapters, and a T. Rowe Price economist, Richard Wagreich, who is mentioned in the acknowledgments. All referenced in‐house T. Rowe Price information, data, and analysis have been kindly furnished to the author by various internal sources, or from the author's position as a former T. Rowe Price executive, fund president, and CFO. External T. Rowe Price data was obtained from their annual reports, their Form 10‐K reports, mutual fund reports, and recent analyst reports that give a comprehensive summary of a company's financial performance. Information was also drawn from the Investment Company Institute's 2016 Investment Company Fact Book (https://www.ici.org/pdf/2016_factbook.pdf) and from Nikki Ross, Lessons from the Legends of Wall Street: How Warren Buffet, Benjamin Graham, Phil Fisher, T. Rowe Price and John Templeton Can Help You Grow Rich (Chicago: Dearborn Publishing, 2000).

QUOTES AND INTERVIEWS: Quotes by Mr. Price that are not attributed to a source (e.g. Barron's, Forbes, his private journal, or an individual) came from private, in‐house T. Rowe Price Group files that are not available to the public, and through interviews conducted by the author with the following past or present executives with T. Rowe Price: Preston G. Athey, Grace W. Beehler, Edward C. Bernard, Andrew Brooks, Howard P. Colhoun, George J. Collins, M. Jenkins Cromwell Jr., Austin H. George, Robert E. Hall, Curran W. Harvey Jr., Henry H. Hopkins, Hal B. Howard Jr., James A.C. Kennedy, Dorothy B. Krug, Alan D. Levenson, Edward J. Mathias, Steven E. Norwitz, Francis C. Rienhoff, James S. Riepe, George A. Roche, Brian C. Rogers, William J. Stromberg, William B. Thompson, Susan G. Troll, Richard B. Wagreich, and Clive M. Williams.

Interviews with family members, friends, and others consisted of the following: James D. Hardesty, James Harvey, Martha Healy, Ann D. Hopkins, Ann Shaeffer Mackenzie, Rose Mooney, Margaret Herrera Moore, Ann B. O'Neill, Thomas R. Price III, Dr. Peter V. Rabins, Truman T. Semans, Charles W. Shaeffer, Jr., and Eleanor Healy Taylor.

Note: The use of some of the above‐named sources particularly applies to quoted material in Chapters 12, 13, 15, 16, and 17.

Foreword

Mutual fund information came from Arthur Wiesenberger, Investment Companies (New York: Arthur Wiesenberger & Co., 1958).

Chapter 1

In addition to interviewing Mr. Price's son Thomas Rowe Price III regarding details of the early family history, standard methods of genealogical research were employed to produce genealogical reports and pedigree charts for T. Rowe Price, Jr.'s paternal and maternal ancestors and family. Using Family Tree Maker and Ancestry.com, a family tree was created and appropriate records (e.g. census, birth, marriage, death) were attached as sources and as the creation of source citations. Searches of newspaper archives included Newspapers.com and in particular the Baltimore Sun and the New York Times.

Information about the family home and Mr. Price's early years in Glyndon, Maryland, came from Maryland property records, as well as Glyndon: The Story of a Victorian Village Historic Glyndon (Glyndon Community Association, 2010). Information about Mr. Price's high school and college years were obtained from his Franklin High, Reisterstown, Maryland, 1914 yearbook and the Phoenix and the Halcyon, Swarthmore's college newspaper and yearbook, respectively.

Ann O'Neill and sisters Martha Healy and Eleanor Healy Taylor from Historic Glyndon, Inc. were interviewed and provided valuable insight into the early life of T. Rowe Price, Jr. and family. Additionally, Margaret Herrera Moore, the widow of Mr. Price's nephew Rowe Price Moore, shared her late husband's recollections and collection of photographs of the Price family.

Chapter 2

Richard Phalon's 2001 book Forbes Greatest Investing Stories (Hoboken, NJ: Wiley, 2004, Chapter 3) provided additional background information for this period of Mr. Price's life. Historical information about DuPont and General Motors came from the DuPont company website history section. Additionally, articles from 1923 and 1924 in the New York Times and the Washington Post provided details of the criminal case against Smith, Lockhart & Company.

Chapter 3

Facts regarding Mr. Price's early years at Mackubin, Goodrich & Company came from the unpublished private corporate history of T. Rowe Price Group and a July 25, 1999, article by Bill Atkinson in the Baltimore Sun, “Legg Mason Reaches 100.” Information on George Clement Goodrich (G. Clem Goodrich) was obtained in part from Baltimore: Its History and Its People by Clayton Colman Hall (1912).

Eleanor Gherky's engagement to Mr. Price was reported in the Baltimore Sun on December 27, 1925 (“Goucher College Senior Who is Engaged to Wed”).

Extensive biographical research on Eleanor Gherky's father, William D. Gherky (also known as William D. Gharky) included the following sources: Who's Who in Engineering: A Biographical Dictionary of Contemporaries 1922–1923 by John William Leonard (John William Leonard Corporation, 1922); American Electrician, volume 11 (1929); The Electrical World and Engineer, volume 24, (November 10, 1894); and his obituary published in the New York Times, January 18, 1937. Details of Mr. Gherky's extensive inventions and patents were obtained from various editions of the Official Gazette of the United States Patent Office; Electricity: A Popular Electrical Journal, and American Electrician. Finally, the sources of the value of William D. Gherky's estate were his will and other probate documents provided by the City of Philadelphia, Register of Wills.

The author interviewed Mr. Price's son Thomas Rowe Price III, and reviewed interviews conducted by the firm of him and his son, Thomas Rowe Price IV, who had shared their memories of Mr. Price and their mother, Eleanor Gherky Price.

Chapter 4

A key source for this chapter was John Kenneth Galbraith's book The Great Crash 1929 (New York: Mariner Books, Houghton Mifflin Harcourt, 2009; first published 1955), which provides an economic history leading up to the 1929 stock market crash. Another important source was David E. Kyvig's book Daily Life in the United States, 1920–1940: How Americans Lived Through the Roaring Twenties and the Great Depression (New York: Ivan R. Dee, Rowman & Littlefield Publishing Group, 2002). Facts concerning both national and local Baltimore events beginning with Black Thursday, October 24, 1929, through the end of that October were obtained from the issues of the Baltimore Sun published on those dates.

The discussion of Mackubin, Legg is based on the Baltimore Sun, “Legg Mason Reaches 100,” July 25, 1999; interviews with Truman Semans, who has spent his career in management positions at Baltimore financial firms and is currently vice chairman of Brown Investment Advisory & Trust Company; and interviews with Jim Hardesty, former executive vice president of Mercantile Bank, founder of Hardesty Capital, and known as a student of the history of Baltimore financial scene.

In addition to an interview with Mr. Price's son Thomas Rowe Price III, standard genealogical and biographical research was conducted for Marie Walper, Isabella Craig, Walter Kidd, and Charles Shaeffer who formed Mr. Price's first team at Mackubin, Legg & Company and who spent nearly fifty years with him. Finally, details of the amount bequeathed to Eleanor Gherky Price were obtained from William D. Gherky's estate documents from the City of Philadelphia, Register of Wills.

Chapter 6

Details of the 1937 birth of T. Rowe Price & Associates came primarily from the unpublished company history written for the fiftieth anniversary in 1987 and private papers belonging to both Mr. Price and the firm. Biographical research conducted for Charles W. Shaeffer included sources such as the December 21, 2004, obituary in the Baltimore Sun; his 1927 William Penn High School (York, Pennsylvania) yearbook; the 1932 yearbook for Penn State college; and interviews of Mr. Schaeffer's son, Charles W. “Pete” Shaeffer Jr., conducted by the author.

Chapter 7

The author's privately held copy of Mr. Price's first article, “Change: The Investor's Only Certainty,” written in February, 1937, served as the primary source for this chapter.

Chapter 8

Mr. Price wrote a number of client advisories during the firm's early years and in World War II. Sources of information in this chapter were the following privately held client advisories: “State Capitalism” (February 17, 1938); “Why We Advocate Greater Liquidity at the Present Time” (October 1939); “War on Capitalism and the Investor's Battle for Survival” (May 15, 1940); “Why Buy Stocks Now?” (May 22, 1941); “The Investor Faces War, Peace and Inflation (1942), and “Looking Toward a Post War Economy” (June 1942).

The famous series of Barron's articles from 1939 mentioned in this chapter are completely cited in the source notes for Chapter 9, where they are discussed in detail. Mr. Price did author a January 6, 1942, article in Barron's entitled “Growth Stocks in War Time Markets.”

Chapter 9

A series of five articles fully defining Mr. Price's Growth Stock Theory of Investment were written by Mr. Price, published in Barron's in 1939, and form the core of this chapter. These articles were “Picking ‘Growth' Stocks: Corporations, Like People, Have Life Cycles; Risks Increase when Maturity is Reached” (May 15, 1939); “Picking ‘Growth' Stocks: Measuring Industrial Life Cycles; The Fallacy of Investing for High Current Income” (May 22, 1939); “Picking ‘Growth' Stocks: Procedure of Selection Applied in Three Fields; Factors to Consider” (June 5, 1939); “Picking ‘Growth' Stocks: How to Detect the Change from Growth to Maturity, Chrysler vs. General Motors” (June 12, 1939); and “Using ‘Growth' Stocks: ‘Stable' and ‘Cyclical' Types Permit Flexibility in Portfolio Management” (June 19, 1939).

An additional source was Mr. Price's April 1973 brochure, “A Successful Investment Philosophy Based on the Growth Stock Theory of Investment.”

Chapter 10

Two privately held client advisories penned by Mr. Price were referenced for this chapter: “Follow Up of 1945 Forecast,” written just days before the first atomic bomb was dropped in August 1945, and the second advisory in May 1946, “Opportunity Versus Accomplishments.”

Biographical and genealogical sources were studied for information on John B. Ramsay Jr. and family, including the 1922 Princeton University Bric‐a‐Brac yearbook and a 1988 obituary from the Baltimore Sun.

Chapter 11

Peter F. Drucker's The Pension Fund Revolution (1976; republished by Transaction Publishers, 1995), provided information on General Motor's pension plan changes spearheaded by Charles E. Wilson in 1950.

Barron's invited Mr. Price to update his 1930 articles on Growth Stocks. He published two articles with the same title, “Picking Growth Stocks for the 1950s,” on February 6 and February 20, 1950. He followed that up with two additional articles in Barron's: “Picking Growth Stocks for the 1950s” (June 18, 1951), and “Fifty Growth Stocks for the 1950s: 1953 Revision” (October 1953).

The author referenced the following publications for statistics regarding the amount of pension assets managed and the percentage of equities invested in those pension plans: “Private Pension Plans, 1950–1974” by Alfred M. Skolnik (Social Security Bulletin 39, no. 6, June 1, 1976); “Private and Public Pension Plans in the United States” (National Bureau of Economic Research, 1963); “The Pension and Retirement Markets: Composition and Growth of U.S. Pension Assets” (U.S. Department of Labor); “Private Pension Plan Bulletin Historical Tables and Graphs 1975–2015” (U.S. Department of Labor, February 2018); “Employee Benefit. Plans, 1950–1967,” by Walter W. Kolodrubetz (Social Security Bulletin 32, April 1969); and “Historic Study of Private and Public Pension Plans 1968‐89” (Goldman Sachs, 1989).

Biographical and genealogical research was undertaken for background on E. Kirkbride Miller and John Hannon.

Chapter 12

Historical information came from Martin Walker's The Cold War: A History (New York: Henry Holt &Co., 1994).

Chapter 14

Remarks by Ben S. Bernanke on October 24, 2003, at the Federal Reserve Bank of Dallas Conference on the Legacy of Milton and Rose Friedman's Free to Choose, Dallas, Texas (www.federalreserve.gov/boarddocs/speeches/2003/20031024/default.htm).

Chapter 16

The following sources were consulted for this chapter: “The Government Takeover of Student Lending” (Forbes, May 11, 2010); “Net Neutrality a Go for Internet Providers” (US News & World Report, February 26, 2015); “A Political Opening for Universal Health Care?” (Atlantic, February 14, 2017); and Nassim Nicholas Taleb, The Black Swan: The Impact of the Highly Improbable (New York: Random House, 2007).