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While Ann Coleman still believes in the Foolish Four as a long-term model, she is diligently researching alternative pools from which to draw in order to expand to a larger universe of stocks than simply the Dow, which is shifting its emphasis to lower-dividend companies. These changes, like the earthquakes and hurricanes that transform our landscapes, will naturally reduce the number of available value companies from which to pick.
Our Rule Maker portfolio has decided to discontinue the Foolish Four strategy. While this change emanates from a decision to more rigorously adhere to Rule Maker principals, which dictate holding stocks for 10 years or longer, it's still one arm of our Foolish family bidding adieu to an honorable Foolish tradition.
In Hawaii, the family, or "ohana," is a revered institution mentored by the elder and wise "kupunas," and serves as the foundation from which all questing generations can return for nurturing and healing. Since most of us have no investing traditions from our ancestors upon which to draw, the Foolish community creates an investing ohana where we can be supported and educated. But even the most time-honored traditions are subject to evolution, especially when the institutions themselves undergo changes to keep up with contemporary culture, as the Dow just recently experienced.
Still, no matter what investing path one chooses to take, Foolish investors must remember to honor the traditions of Aloha, which sets them apart from other investors in our current financial climate.
Aloha, traditionally familiar as a greeting or farewell, is known on the island of Kauai as an acronym for the traditional Hawaiian spirit that guides the behavior and attitude one extends to the world. True Foolishness captures the spirit of Aloha, the acronym.
A (Akahai) -- Kindness to be expressed with tenderness.
Ideally, this principle manifests on our message boards, where Fools assist each other daily in learning about the investing process. Nowhere is it more evident than on our Ask A Foolish Question, Foolish Four, and Foolish Workshop message boards, where no question is too trivial to be diligently answered. Investors helping investors for no other reward than the satisfaction derived from service is the Hawaiian tradition of Akaha personified.
L (Lokahi) --- Unity, to be expressed with harmony.
Fools are united in the belief that individual investors can successfully manage their own portfolios with moderate doses of education, time, and a little help from their Foolish friends. By following the goals to educate, enrich and amuse, we create harmony and accord, an atmosphere where investors can develop a tradition of inner calm while pursuing their goals in a manic environment (more familiarly known as the stock market).
O ('Olu'olu) -- Agreeable, to be expressed with pleasantness.
To be agreeable doesn't necessarily mean to agree. 'Olu'olu is practiced through discourse and analysis. Every Fool is on an individual investing path, and must decide which style is personally satisfying and doable. While it would be unfair for any individual to impose his investing style on another, it's certainly in the spirit of 'olu'olu to discuss the reasons and methodology that one pursues, with the hope of empowering other individuals with the best information necessary to make their own decisions. The more pleasant we make our sharing, the more easily it can be accepted and understood by others.
H (Ha'aha'a) -- Humility to be expressed with modesty.
Ah... when our investing pursuit thrusts us into the proud world of success, Fools are appropriately humbled and grateful for the rewards of our efforts. And if we ever become too big for our britches, we need only visit MSNBC's "Coulda, shoulda, woulda" chart for 1999, which will bring us back to earth as we marvel at how much we might have made had we invested in 1999's top 10 performing stocks. To spare you the pain of kicking yourself, $5,000 invested in Qualcomm would have returned $134,433.50 in 1999. As a matter of fact, had you invested $36,772.18 in Qualcomm on January 4, 1999, you would've made a million by year's end. That's a lot of leis, no matter how expensive the orchid!
For those investors riding the meteoric waves of 1999, we say congratulations. As Foolish Four investors, however, we don't expect that kind of return -- just the satisfaction of beating the Dow. Even though we didn't quite do that this year, we were close enough to deserve a pat on the back.
A (Ahonui) -- Patience to be expressed with perseverance.
If you thought I was pushing the envelope in pointing out the analogy between Aloha and Foolish investing, the principle of Ahonui, the guiding principle for ALL Foolish investing styles, should put any doubts to rest.
I may no longer be bathing in the Pacific's glorious waves, or drinking mai tai's until I forget where I put my room key, but I will always keep with me the spirit of Aloha as I pursue my investing endeavors. Won't you join me?