Fool.com: A (Non-)Financial Health Screen (Workshop) December 23, 1998

<FOOLISH WORKSHOP>

A (Non-)Financial Health Screen

Baltimore, MD (Dec. 23, 1998) -- It's the end of another year. A good time for assessments and reassessments, especially when we're considering our financial health. All too often, in dogged pursuit of our financial health, we neglect our non-financial health.

As a practicing cardiologist, I'm all too aware of the consequences of neglecting our non-financial health. The issue has become more acute now that it's not uncommon for me to care for a heart attack victim who's younger than myself, a wizened 41 years of age. One unrelenting theme of caring for these young cardiac patients is that their risk for developing coronary disease is not only predictable, but to some extent avoidable.

For this new year, let's turn our usual investment rankings inward and take stock in ourselves. Using ourselves as a personal database, let's see how we would rank if we were investing in our cardiac health. Would we pass our non-financial health screen?

Similar to the ground rules for choosing a stock screening strategy, we need some rules to evaluate if we're a sound "ongoing concern" that will thrive in the coming year. Would each of us make a good investment?

For each screening criterion below that is answered "yes," add the points.

Is the investment a male or post-menopausal female? (4 points)
Is the investment over 65 years old? (5)
Does the investment smoke cigarettes? (7)
Does the investment weigh more than 20 pounds over ideal body weight? (4)
Does the investment have blood pressure more than 140/90? (6)
Does the investment have a cholesterol level over 240? (6) Don't know? (3)
Does the investment have diabetes? (7)
Does the investment do less than 30 minutes of exercise 3 days a week? (4)
Does the investment have any parents or siblings that developed coronary disease before age 55? (4)

Now for the backtesting! Total up your points:

0-6 points >>>Low Risk
7-10 points >>>Low to Moderate Risk
11-16 points >>>Moderate Risk
17 points or more >>>High Risk

Well, how'd we do? Certainly for most of us, there's probably room for improvement. Many of these risk factors are modifiable and will make a significant difference in your chances of having a heart attack down the road. What's the use of earning oodles of money from our investments, if we can't enjoy these fruits in good health?

One advantage of the Workshop strategies is that they are mechanical and, for the most part, they require only a few hours a year to implement. Let's all use that time Foolishly, get some exercise, and take care of ourselves. And may 1999 be a splendid one for you, wherever you are.

For more information about your cardiac health, and to take a slightly more detailed risk assessment quiz, check out the website for the American Heart Association.

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A correction from last week's column. Contrary to what I had written, Goodyear Tire <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GT)") else Response.Write("(NYSE: GT)") end if %>, with its 182% return, was not an RP4 stock in 1991.

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Beating the S&P year-to-date returns (as of 12-22-98):

Anheuser Busch    +49.1%
Emerson Electric   +7.1%
Ford              +62.9%
Kimberly-Clark    +10.0%
Texaco             -2.9%

Beating the S&P   +25.3%
S&P 500           +24.0%

Compound Annual Growth Rate from 1-2-87:

Beating the S&P   +20.5%
S&P 500           +17.5%

$10,000 invested on 1-2-87 now equals:

Beating the S&P  $92,700   
S&P 500          $58,500

Check out the latest file updates for the Workshop:
New Rankings | 1998 Returns | New Database