Thursday, December 04, 1997
The Daily Workshop
Report
by Robert Sheard
(TMF Sheard)
Scroll to the bottom for year-to-date Growth and Value Screen results.
I discovered last night that I had one more year's worth of data for the Keystone Approach than I originally believed. So let me lay out the results for 1986 today -- a good, but not spectacular year.
Here are the top ten Keystone stocks for 1986 and their returns for the year:
Anheuser-Busch <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BUD)") else Response.Write("(NYSE: BUD)") end if %> 25.8%
Westinghouse <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WX)") else Response.Write("(NYSE: WX)") end if %> 28.4%
Eli Lilly <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LLY)") else Response.Write("(NYSE: LLY)") end if %> 36.6%
Chrysler <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: C)") else Response.Write("(NYSE: C)") end if %> 22.8%
Int'l Business Mach. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBM)") else Response.Write("(NYSE: IBM)") end if %> -20.4%
J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JPM)") else Response.Write("(NYSE: JPM)") end if %> 32.6%
Coca-Cola <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KO)") else Response.Write("(NYSE: KO)") end if %> 37.9%
Merck <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MRK)") else Response.Write("(NYSE: MRK)") end if %> 84.5%
PepsiCo <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PEP)") else Response.Write("(NYSE: PEP)") end if %> 9.6%
Abbott Labs <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ABT)") else Response.Write("(NYSE: ABT)") end if %> 36.0%
The top five returned 18.6% thanks to the loss in IBM. The top ten fared much better, returning 29.4%, another example of the merits of spreading one's capital out a little bit. The S&P 500 returned 18.5% for the year. Eight of the ten stocks fared better than the index, a nice batting average
We now have a twelve-year history (at the end of this month) for Keystone, and here are the annualized returns from January 1, 1986 through November 25, 1997:
29.0% Keystone 5 25.6% Keystone 10 19.0% Beating the Dow 5 19.0% Beating the Dow 10 16.9% S&P 500 Index
A $10,000 investment in 1986 would have grown (excluding taxes) to:
$206,555 Keystone 5 $151,539 Keystone 10 $ 79,216 Beating the Dow 5 $ 79,045 Beating the Dow 10 $ 64,396 S&P 500 Index
If you'd like a complete explanation of the Keystone model procedure, please visit my Workshop column for December 2. And check back in tomorrow when I'll post new rankings for all of the screens we're going to be following in 1998. Fool on!
1997 Workshop Screens Year-to-Date Returns Monthly Growth Screens 70.61% Relative Strength 30.09% S&P 500 Index 27.48% Investing for Growth 22.91% EPS Plus RS 13.14% Formula 90 8.31% Unemotional Growth 7.49% YPEG Potential 4.36% Low Price/Sales Year-to-Date Returns Annual Value Screens 28.08% Beating the S&P 27.63% Foolish Four 24.84% Dow Jones Ind Avg 24.55% Dow Combo 23.09% Dogs of the Dow 22.61% Unemotional Value 22.61% Beating the Dow
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