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Tuesday,  March 25, 1997
The Daily Dow FOOL GLOBAL WIRE by Robert Sheard LEXINGTON, KY. (Mar. 25, 1997) -- Yesterday I mentioned in this column that I'm changing the accounting process to make the area more readable and easier to follow for our new readers. I was surprised how many readers wrote me, expressing concern that I was somehow "dumbing down" the area. I want to assure you it's not the case at all. All I've done was re-set the portfolio value for the new calendar year and started a new accounting for the Foolish Four model. The same stocks are included, the same principles carried through, and the same weightings are being observed (doubling the #2 stock along with positions in numbers 3, 4, and 5). For the new readers to our area, who don't yet have experience with the Dow approaches and the way the system works, this makes the accounting system easier to figure out. For veteran readers, who are familiar with the idea of carrying some stocks over for a second year, there's very little difference. (Don't forget that the Dow Statistics Center still carries the entire model's history since 1971.) The year-to-date accounting, however, remains the same. Starting with today's report, I reset the opening value for the model at the beginning of 1997 at $50,000 (a completely arbitrary number) and adjusted the share amounts using the prices from the beginning of the year we originally used. I've accounted for commissions as we've been doing, at $20 per trade, and I've included the dividends paid so far this year by the model components. One reader asked that we consider reporting the returns like the mutual fund industry does, over 1, 3, 5, and 10-year periods, etc. While doing that daily would be a bit of an accounting nightmare, I can certainly report on those numbers as we finish each year (since we don't archive quarterly or monthly sub-totals). Using the closing numbers for 1996, for example, here are the returns (excluding fees and taxes) for the Foolish Four model: 1 Year 30.47% 3 Years 18.76% 5 Years 24.34% 10 Years 19.83% 15 Years 23.34% One clear pattern that emerges here is that in some stretches the model works better than others, but over the long haul (a decade or two), it's hard to scoff at such returns as a result of such little effort or trading. Every once in a while, it does me good to have the simple beauty of this amazing track record forced to the front of my awareness again. Simply amazing. Fool on. (c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.	The Current BTD 10 1. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> 2. *International Paper <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> 3. *Goodyear Tire <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GT)") else Response.Write("(NYSE:GT)") end if %> 4. *General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> 5. *Chevron <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> 6. Eastman Kodak <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:EK)") else Response.Write("(NYSE:EK)") end if %> 7. Minnesota Mining <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> 8. Exxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 9. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %> 10. Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> ***NOTE: FOOLISH FOUR STOCKS ARE PRECEDED BY AN ASTERISK AND ARE ITALICISED Updated Daily
Today's Dow Numbers Stock Change Last -------------------- T +1 1/8 36.13 GM - 7/8 57.00 CHV +1 1/8 71.63 MMM + 1/8 88.75 Day Month Year FOOL-4 +1.17% -2.47% -1.22% DJIA -0.42% -0.02% 6.64% S&P 500 -0.23% -0.22% 6.52% NASDAQ +0.44% -4.66% -3.33% Rec'd # Security In At Now Change 1/2/97 153 Chevron 65.00 71.63 10.19% 1/2/97 120 3M 83.00 88.75 6.93% 1/2/97 179 Gen. Motor 55.75 57.00 2.24% 1/2/97 479 AT&T 41.75 36.13 -13.47% Rec'd # Security In At Value Change 1/2/97 153 Chevron 9979.25 10958.63 $1013.63 1/2/97 120 3M 9960.00 10650.00 $690.00 1/2/97 179 Gen. Motor 9979.25 10203.00 $223.75 1/2/97 479 AT&T 19998.25 17303.88 -$2694.38 CASH $273.22 TOTAL $49388.72

Main Page Fool Wire Hall of Portfolios Fool's School Daily News Fool Mart Foolish Games Copyright©1997, The Motley Fool, All Rights Reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool, Inc. Legal Disclaimer, in fine print of course! Questions or Comments? Please contact Ted Verrill at [email protected]