(MONEY Magazine) – Mark Holowesko's famed mentor, Sir John Templeton, had already retired from day-to-day fund management when Templeton was interviewed for this column just before the outbreak of the Persian Gulf war in January 1991. Still, he strongly urged MONEY readers, in the event of war, to invest in then depressed stocks, particularly laggard small-company and financial shares. Bingo! Since the war's eve, the Russell 2000 index of small stocks has soared 110%, double the Dow's 52% rise, while financial stocks as a group have gained 98%. Among his favorite financials was Merrill Lynch, which amazingly has quadrupled to a recent $41. Sir John also hinted in the interview that the London-traded stock of his own company, Templeton Galbraith & Hansberger, was a great buy at $3.40. Fund sponsor Franklin Resources agreed, offering up to $6 a share (a 76% profit) to acquire Templeton in July 1992.