87-year-old financial consultant invests in himself for long run

March 16--James G. Connor Jr. has a strong belief in following the leaders: the leaders of strong, well-run American companies with a long track record.

Connor also has a long track record as an investment adviser, recently wrapping up a career that started in 1948 with Reading investment adviser and financier Jacob L. Hain, founder of Penn Square Mutual Fund.

"I liked to stay with the people who have been successful for a long time," Connor said.

He keeps company with names such as VF Corp., General Electric Co., AT&T Inc. and Wal-Mart Stores Inc.

"They're the ones who took us out of the debacle five years ago," said Connor, 87, of Greenfields, who plans to continue consulting as needed for Berkshire Investment Group, Wyomissing, where he most recently worked.

Connor said the reason the stock markets have reached new highs is because of the excellent leaders who manage the blue-chip companies, providing stability in the economy.

However, the banking industry has been disappointing to him, especially during the worst of the financial crisis.

"The banks went too far afield," Connor said. "They got into insurance, investments, auto financing, a lot of things that are not a true banker's focus. In the case of mortgages, they just failed miserably."

As for the numbers of households whose homes went into foreclosure, Connor said: "I think some people got themselves into these situations by fast talkers. Others thought they could handle the mortgages and overstated their ability to pay. Some were depending on two incomes, his and hers, and some lost their jobs."

Connor is a conservative value investor. He did not attend college. Rather, he learned from others and from visiting companies in which Hain wanted to invest.

At 17, Connor left Reading High School after his junior year to join the Marine Corps.

It was World War II, and he wanted to serve. In his two-year tour of duty, he was injured twice, in Peleliu in the Palau Islands and on Okinawa, Japan. He still has shrapnel in his body. He was awarded the Purple Heart.

Although he worked for Blair & Co., Fahnstock & Co., Butcher & Singer, Shearson Lehman and lastly Berkshire Investment Group, Connor learned the most from and looked up to Hain.

Connor described Hain, who also had an investment firm in addition to Penn Square Mutual Fund, as a brilliant man, ahead of his time. He died in 1972.

Connor said Hain later ran into problems with the Securities and Exchange Commission with his investment firm, although Connor added that no serious charges were ever brought against Hain.

Connor cited some of their investment achievements as taking Penn Square Mutual Fund, an early no-load fund, from a couple of hundred thousand dollars in seed money to $2 million.

In its day, it became one of the top mutual fund companies in America, Connor said.

"Hain took clients' money and invested in listed corporations on the New York Stock Exchange, and he'd take the excess working capital and buy into other companies," Connor said. "Jacob L. Hain was the forerunner of a lot of stuff that takes place now.

"We owned Hamilton Watch, General Cigar and A.G. Spalding."

As for people who follow tips and make uninformed investment choices, Connor said: "Those people, as far as I'm concerned, are in the minority. They are the gamblers. They really don't know what they've done; they don't know the company they're buying; they don't read the company information; they don't read the newspaper. With computers, you can get an awful lot of information worldwide, but for some people, that's too difficult."

Connor also called day traders gamblers.

"Some day traders can do it for a while, but not on a long-term basis," Connor said. "It doesn't take much to get in or out of a stock today. But it's just the mental approach you have toward your future: 'Do you want to try to make money in a slow progressive way or the overnight method?' "

Looking back on his life, Connor said: "I've been very fortunate in my life. My health is good, and I was an avid skier and tennis player. I loved Aspen, Colo. I skied in New England and Europe. I don't ski anymore, but I play golf twice a week.

"I didn't really want to retire, but with certain things happening in my life, I had to. I'm going out as a honest person; I'm not being forced to."

J. Randall Miller, managing partner at Berkshire Investment Group, said: "Something I'd like to add that has nothing to do with Jim's time in the business.

"It was what he did for us prior to entering the profession. Jim was a young Marine who fought on the beaches of the South Pacific during World War II. I've thanked him more than once for all Americans.

"Our plans call for my son, Kevin, to take Jim's office and, if I do the math correctly, he'll be there until 2078 if he practices as long as Jim. Imagine that.

"Jim was like a walking history book when it came to events related to the investment world."

Contact Business Editor Karen L. Miller: [email protected].

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