The Daily Dow
Thursday, August 1, 1996
by Robert Sheard

LEXINGTON, KY. (August 1): The Dow posted a third straight solid gain today, and even though the model portfolio holdings were up, they couldn't keep pace with the 30-stock benchmark. Nevertheless, it's been a nice pop since the steep correction of the past few weeks.

Several people have asked questions about the new Dow variation I discussed in this write-up yesterday, most of them wanting to double-check whether they were picking the right stocks and how they could incorporate the approach into a larger Dow portfolio.

As of right now, the F2, or Dynamic Duo, or whatever we end up calling the approach, would include International Paper and General Motors. IP is the #1 stock in the Beating the Dow order, and because it's not also the highest yielder of the ten, it would be included in the pair. GM, of course, is the #2 stock and would join it.

Had IP been the highest yielder as well as the lowest-priced of the ten, it would be bypassed for the next two stocks in the Beating the Dow order.

Regarding how one might use the variation, one possibility is to continue buying four stocks, as we do here for the Foolish Four, but double the weighting of the Dynamic Duo. Using today's current stocks, for example, you would buy IP, GM, T, and CHV, with double weightings of IP and GM. That's just one possibility, of course. Use the information to fit in your own Foolish portfolio whatever way works the best for you. Fool on!

Transmitted: 8/1/96

      THE FOOLISH FOUR MODEL (8/1/96)  

          Day   Week   Quarter  Year   History
Fool-4   0.70%  1.74%  -0.92%  12.01%  12.01%
DJIA     1.19%  2.22%  -1.06%   9.33%   9.33%
S&P 500  1.57%  2.22%  -3.07%   5.53%   5.53%
NASDAQ   1.69%  1.80%  -7.27%   4.44%   4.44%


Bought  #    Stock     In At   Now    Change

1/2/96  142  DuPont    69.88  80.75   15.56%
1/2/96  148  E. Kodak  67.00  75.75   13.06%
1/2/96  380  Chevron   52.38  58.13   10.98%
1/2/96  149  3M        63.76  65.88    3.32%
7/16/96  14  Imation   26.16  22.75  -13.03%

Bought  #    Stock          Cost       Value      Change

1/2/96  142  DuPont      $9,922.25  $11,466.50  $1,544.25    
1/2/96  148  E. Kodak    $9,916.00  $11,211.00  $1,295.00    
1/2/96  380  Chevron    $19,902.50  $22,087.50  $2,185.00    
1/2/96  149  3M          $9,500.09   $9,815.38    $315.28   
7/16/96  14  Imation       $366.21     $318.50    $(47.71)  

      CASH      $1,106.15      
      TOTAL    $56,005.03      



Transmitted: 8/1/96

      
      

      
      

        

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