Foolish Four Portfolio
By
A Foolish Treasure Hunt!
Scavenging for fun and profit
BALTIMORE, MD (Sept. 29, 1999) -- My son had a birthday party this weekend, and it got me thinking about the parties I used to have when growing up. Some of my fondest memories of birthdays past involved those party games where my friends had to scavenge around the neighborhood, looking for "treasures," such as a red leaf or a piece of string. Usually, the team that collected the most of these treasures won a prize, maybe a yo-yo or a kazoo. Ah, when life was simple and carefree!
Fools, it's time for another treasure hunt of sorts. This one's got prizes too, so pay attention! Today we're going to go scavenging for nuggets of information. Many Fools may not realize the wealth of data available to investors around these parts. We'd like to help you get better acquainted with this information, and have a little fun to boot.
Here's the deal. There are seven questions that follow, pertaining to all kinds of facts that can be found in our little neighborhood. Usually, the answers are just a few mouse clicks away, starting with some of the headings just to the right of or below this column.
Once you've answered a question, simply write down the letter or letters to the left of the correct answer. Once you've collected all seven answers, mix the letters around and find the winning phrase -- which just happens to contain some of the most Foolish advice ever given. Remember that the letter combinations to the left of each answer are linked; that is, if the answer to a question is "AB," keep those letters together when doing the unscrambling.
Oh, yes -- the prizes! Ten contestants with the winning phrase will be selected at random to receive either the terrific book The Foolish Four or that stylish Fool ballcap. Just list your preference along with your entry. The remaining winning entries will receive free, actual paper copies of the new Motley Fool Monthly's next edition featuring (what else?) the Foolish Four. (Losers can get their free copy at FoolMart: Motley Fool Monthly.)
The deadline is midnight on Monday, October 4. Please follow these instructions for your entry:
1. Address your e-mail to [email protected].
2. Put the unscrambled phrase in the SUBJECT LINE (very important).
3. Include your mailing address in the body of the e-mail. Specify either Foolish Four Book or Fool ballcap, and let us know how you want to be publicly identified (name/city or e-mail address) in the event that you are one of the 10 BIG winners.
4. One entry per person, please (yes, we will check).
Now, get crackin'. It's almost time to blow out the candles and cut the cake!
1. As of the beginning of this year, which Dow stock was ranked second by RP ratio?
PO DuPont <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DD)") else Response.Write("(NYSE: DD)") end if %>
SO Sears <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: S)") else Response.Write("(NYSE: S)") end if %>
NO Eastman Kodak <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EK)") else Response.Write("(NYSE: EK)") end if %>
LO Caterpillar <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CAT)") else Response.Write("(NYSE: CAT)") end if %>
2. In 1998, which of the following strategies gave the highest return?
RM S&P 500
RT Dow Jones Industrial Average
RE Foolish Four (F4.2)
RS RP2
3. Which stock of all the Beating the S&P 30 stocks currently has the highest RP ratio?
PH Ford Motor <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: F)") else Response.Write("(NYSE: F)") end if %>
CH Pepsico <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: PEP)") else Response.Write("(NYSE: PEP)") end if %>
TH Bank One <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ONE)") else Response.Write("(NYSE: ONE)") end if %>
SH Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %>
4. In this decade, which Foolish Four stock (of those chosen at the beginning of the calendar year and officially followed) gave the best return during the year it was held?
SE Merck <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MRK)") else Response.Write("(NYSE: MRK)") end if %>
RE IBM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBM)") else Response.Write("(NYSE: IBM)") end if %>
ME Union Carbide <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UK)") else Response.Write("(NYSE: UK)") end if %>
TE Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %>
5. What was the title of the Foolish Four report that ran on June 2, 1999?
EG Introduction to IP
OG Retirement Needs, Part 3
NG Investing With Rube
RG In Deo Speramus
6. As of yesterday, how much has the Beating the S&P portfolio outperformed the S&P 500, measured by annual growth rate, since 1987?
E 1.3%
A 3.3%
O 5.3%
I 7.3%
7. From 1994 to 1998, $10,000 invested in a hypothetical portfolio would have earned the most if invested in which of the following?
NK S&P 500
SK Dow Jones Industrial Average
LK Foolish Four
RK Ear Wax Futures
Beating the S&P year-to-date returns (as of 09-28-99):
Schlumberger <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %> +27.6%
Kimberly-Clark <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KMB)") else Response.Write("(NYSE: KMB)") end if %> +0.6%
Campbell Soup <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPB)") else Response.Write("(NYSE: CPB)") end if %> -24.6%
Ford Motor Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: F)") else Response.Write("(NYSE: F)") end if %> -12.6%
Bank of America <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAC)") else Response.Write("(NYSE: BAC)") end if %> -4.4%
Beating the S&P -2.7%
Standard & Poor's 500 Index +4.3%
Compound Annual Growth Rate from 1-2-87:
Beating the S&P +24.4%
S&P 500 +17.1%
$10,000 invested on 1-2-87 now equals:
Beating the S&P $159,700
S&P 500 $74,200