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The Daily Dow LEXINGTON, KY. (December 31) -- Blow the horns, pop the corks, kiss someone good-looking, 1996 was a pretty sweet year for the Dow Approaches. With the closing bell on Wall Street today, the Foolish Four variation we've been tracking all year in this section of Fooldom racked up a tidy 29.29% return, including trading costs and dividends, even after today's 2% plunge. Not bad considering we haven't done anything but watch the portfolio for twelve months after spending all of 30 minutes setting it up.
Let's look ahead to next year's edition of the Foolish Four. With the final rankings in the books, we know what the 1997 portfolio will look like. The top ten yielding Dow stocks going into 1997 are:
But sorted by ascending stock price, the new Beating the Dow order is:
Where to from here? Well, the tough question about where AT&T will be after the spin-off of NCR today is now out of the way. The stock (with NCR) closed at $43 3/8 today. And without NCR, it closed at $41 3/4. Either price places AT&T in the #2 position in the Beating the Dow order.
That means the Foolish Four for 1997 are AT&T (the doubled stock), General Motors, Chevron, and 3M. Based on today's closing prices, we'll be "selling" Imation, DuPont and Eastman Kodak, re-balancing our current positions in 3M and Chevron, and then "buying" AT&T (without NCR) and General Motors. (Keep in mind, this is just a paper model, not a real-money portfolio like the Fool Portfolio and Boring Portfolio.) The new weighting will have 40% of the portfolio in AT&T, and 20% each in the remaining three stocks.
If you're following the Unemotional Value approach, the top four stocks are International Paper, AT&T, General Motors and Chevron. If you double the weighting of anything with this approach, you would double both International Paper and AT&T.
So there you have it. All set for another year of market-beating performance. Fool on! And don't forget, these are the final days to sign up for January's Thoroughbred Stock Challenge. I stop taking entries with the opening bell Thursday morning. Today's Dow Numbers Stock Change Bid ------------------- DD -1 5/8 94.13 CHV -1 1/2 65.00 MMM -1 7/8 83.00 EK -2 1/8 80.25 IMN -1 1/4 28.13
Day Month Year History
FOOL-4 -2.14% 2.20% 29.29% 29.29%
DJIA -1.54% -1.13% 26.01% 26.01%
S&P 500 -1.74% -2.31% 20.26% 20.26%
NASDAQ +0.25% -0.12% 22.71% 22.71%
Rec'd # Security In At Now Change
1/2/96 142 DuPont 69.88 94.13 34.70%
1/2/96 149 3M 63.76 83.00 30.18%
1/2/96 380 Chevron 52.38 65.00 24.11%
1/2/96 148 E. Kodak 67.00 80.25 19.78%
7/16/96 14 Imation 26.16 28.13 7.52%
Rec'd # Security In At Value Change
1/2/96 380 Chevron 19902.50 24700.00 $4797.50
1/2/96 142 DuPont 9922.25 13365.75 $3443.50
1/2/96 149 3M 9500.09 12367.00 $2866.91
1/2/96 148 E. Kodak 9916.00 11877.00 $1961.00
7/16/96 14 Imation 366.21 393.75 $27.54
CASH $1942.85
TOTAL $64646.35
Transmitted: 12/31/96
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