The Birmingham age-herald., 1917-02-05
BARUCH GIVES INSIGHT Calmly Tells How He Made Nearly Half Million Dollars 13 Days During December-Says He Never Pays Any
 Attention to Wall Street Rumors

illustration of the diractness with which his mind works.
 Everybody in the world had been talking war" he said, and here, unex- l pectedly, came declaration of peace 1 from Germany. I saw what it meant from an economic, from the general bust ness point of view, from the viewpoint of the stock market To me it meant that I should sell stocks and keep on selling"
 Baruch never has any pride of opinion. That was shown by the fact that as Iquickly as orders could be executed he | switched from the long to the short side of the stock market. When he heard the news from Berlin on December F, he was not handicapped by any preconceived | ideas of what England or Germany would or should do. At any time on moments notice, if convincing evidence appears, Bafuch would just as soon be a bear as a bull. When he gets the evil dence he quickly makes up his mind and then acts, never stopping second to | qualify or to argue with himself or anybody else i No one in Wall street is better judge of news than Baruch and what is more, no one in the whole financial district is surer of himself. He has a wonderful belief in Barney Baruch. He did not hesitate a second to state out in the
 
 the stock market He believes firmly that if anybody wants to take advantage of his frankness, he can take care of himself He has confidence in his own brains and he asks no favors. All that he ever wants is a chance to use his own head.
 why did you sell United States Steel short" he was asked His reply as fol- lows is worth recalling: Having once made up my mind to go short of the market, I picked out a stock which was largely held by the public, and one which had extensively joined in the advance in prices based on the unnatural war order business this country has been doing for the past two and a half years. I picked out Steel because if I had afterward found I was wrong that stock would have permitted me to back out in a hurry"
 As the average speculator does not go short of the market his next re- mark will prove more interesting:
 And on the other hand when I de- eide to go long of the market, I pick out a stock which I think has intrinsic value, one which is selling compar- atively low. I never try to get the top or the bottom"
 While he did not so declare himself or the stand it can be stated that Raruch never speculates on borrowed money. He believes that is how most traders get in trouble. They get over extended buying stocks on a margin, that is on borrowed money, and when the banks begin to call loans and the market then begins to go down, there is nothing to do but throw their hold ings overheard.
 Then, too. Baruch never tries to make a market. That is why James R. Keene, D. G. Reid. F. H. Hartman, William Rockefeller, H. H. Rogers and other well known leaders have at various times been heavy losers.
 Baruch waits patiently, frequently for months, until the stock market be- comes overbought or oversold Then when call money suddenly jumps to 15 per cent. as it recently did or some other important news comes out to start the market in the direction it is plainly headed he takes his stand. That happens half dozen times or more year. after which he invar- isbly makes quick cleanup and then leaves for Georgetown, s. C., his coun- try place, to get rest and get back nerve for his next move. He is there now. Any man who follows the fore going rules in the stock market can make money in keeping with his cap ita, and intelligence. R,L B.