The Motley Fool: The Boring Portfolio

ANN ARBOR, MI, April 12, 1996 -- The Borefolio managed to end the week on a positive note, thanks to Green Tree Financial and Border's Group.

Green Tree grew $1 3/8 today. For the past few days, "investors" feared the nation would soon suffer waves of inflation and hence any companies that were sensitive to changing interest rates would surely drown. Today, apparently, they decided otherwise. And next week -- who knows? One thing we do know, however, is that whether the interest rate tides are in or out, Green Tree flourishes.

In that regard, an article in today's Wall Street Journal extended a line pursued in last night's Borefolio update. The WSJ article noted (yet again) that Green Tree's CEO, Lawrence Coss, received a $65.1 million bonus this past year as a result of a compensation plan that is tied to the company's performance. That bonus works out to $0.26 *per share* of GNT stock. In other words, over the course of a year, the Borefolio in effect would have paid Mr. Coss a $52 bonus (200 shares X $.26) for nurturing Green Tree's financial health.

Perhaps that a fair deal, perhaps not. What is undeniable is that the company -- and, by extension, the stock -- has performed powerfully well over the past five years. At the end of 1996, Coss's bonus plan expires, and that $0.26 per share (or whatever) will thereafter revert to the Borefolio and other shareholders.

As for Border's, three new superstores opened today in Dallas (yippy-ki-yay!), Evanston (Go Wildcats!), and Bangor (ay-yuh). The stock celebrated by hitting another new high and cracking into $30 territory, closing at $30 3/8 (bid). Border's has booked a 35.5% gain, figured Foolishly, in the six weeks since it was acquired by the Borefolio.

The last item for tonight is a warm welcome for Lousiana-based Shaw Group, pipe bender par excellance. I added 300 shares of SHAW to the Borefolio this morning, paying $18.75 per share plus the broker's commish. SHAW closed up $1/2 today, but the bid/ask spread and transaction charge starts us off a bit in the red.

Earlier today, I expanded and polished up slightly the review of Shaw Group that I posted in the Boring Portfolio section last night. I invite you to click on over to check out that review.

TODAY'S NUMBERS

BGP +1 ...GNT +1  3/8 ...LRCX -   1/8 ...LCSI ---
...PMSI -   1/4 ...SHAW -   1/4 * ...TXI -   5/8 ...
*change reflects purchase price, not yesterday's closing price
Scroll down or expand screen for full portfolio accounting
                   Day   Month    Year  History
        BORING   +0.41%  -0.54%  -2.07%  -2.07%
        S&P 500  +0.87%  -1.36%   2.43%   2.43%
        NASDAQ   +0.34%  -0.04%   5.76%   5.76%
    Rec'd  #   Security     In At       Now    Change
  2/28/96 200 Borders Gro    22.51     30.50    35.50%
   3/8/96 400 Prime Medic    10.07     13.00    29.10%
  1/29/96 100 Texas Indus    54.52     63.25    16.00%
   2/2/96 200 Green Tree     30.39     32.25     6.13%
  4/12/96 300 The Shaw Gr    18.84     18.50    -1.80%
  3/25/96 200 LCS Industr    26.14     21.75   -16.79%
  2/23/96 100 Lam Researc    48.02     35.25   -26.59%
    Rec'd  #   Security      Cost     Value    Change
  2/28/96 200 Borders Gro  4502.49   6100.00  $1597.51
   3/8/96 400 Prime Medic  4027.49   5200.00  $1172.51
   2/2/96 200 Green Tree   6077.49   6450.00   $372.51
  4/12/96 300 The Shaw Gr  5652.49   5550.00  -$102.49
  3/25/96 200 LCS Industr  5227.49   4350.00  -$877.49
  2/23/96 100 Lam Researc  4802.49   3525.00 -$1277.49
  1/29/96 100 Texas Indus  5449.99   6325.00   $875.01
                             CASH  $11465.11
                            TOTAL  $48965.11