Thursday, July 09, 1998

An Investment You Can Sleep With (Literally)
by Brad Parker [email protected]

Whew, am I ever relieved!

For a while I thought I would actually have to continue down the 13 Steps of Foolishness. Having been a fan of the Motley Fool approach to investing, I had bravely faced the 13 Steps with determination. I gained an understanding of Foolishness, settled my personal finances, started an Index Fund, got in on Jeff and Randy's DRiP portfolio, and now I'm mulling over which of the Dow Dividend Approaches to use.

Should I use the High Yield 10, which has compounded at an annual rate of 17.36% over the last 26 years, the Beating the Dow 5, which has compounded at an annual rate of 19.67% over the same time frame, or the Foolish Four which has grown during that time at an annualized rate of 21.96%?

But now I don't have to worry because of two words -- Beanie Babies.

That's right, Beanie Babies. At a recent Arizona Diamondbacks game, collectors lined up for over seven hours before the game to get "Hissy the Snake" as part of a promotion. Collectors flew in from Michigan and drove in from California to get the little toys. Some of the stuffed animals were being peddled for $100 on the streets outside of the ballpark by the end of the game.

Collector Kelly Heimbecker was quoted in a local paper saying the toy had "investment possibilities." She said, "I'm hoping it will eventually pay for [my son's] education someday." Burt Fisher, 53, had the same idea. He was first in line at 5:30 a.m. to add to his collection, which he estimates is worth more than $5,500. "College fund, that's what they're for," Fisher told a reporter.

Isn't that great? Now I can just fly around the country snapping up these stuffed animals, eating at every fast-food restaurant offering them for promotions, and I'll grow rich. Sorry, Mr. Sheard, but all that "unemotional investing" is boring. Plus, who can beat the market anyway?

Now, investing in Beanie Babies - that's something different. They are a sure thing, a good investment for my kids. Just think how rich I can be. Wouldn't you love to be able to cash in on "investments" like the Black Tulip bulb craze in the 1600s, the gold and silver market in the '70s, Oriental rugs and Cabbage Patch dolls in the '80s, or baseball cards in the '90s? Hmmm. I wonder if the cost of all those kid's meals to complete my collection is tax deductible?

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