MainBanner JavaFiller
quote.fool.comToday's FeaturesQuotes, News, Charts, Data

Lots of folk confuse destiny with bad management. -- Kin Hubbard

The Motley Fool
Announces a New Portfolio

by Jeff Fischer

ALEXANDRIA, VA (July 24, 1997) -- The Fool is very proud to announce that a new Portfolio is launching on Monday, July 28th! You, dear Fool, are invited to join this historic event from the very beginning.

The first real-money online portfolio of its kind has a goal of building $500 and an additional $100 per month into $150,000 within twenty years.

The Motley Fool's DRIP Portfolio (yes, we're looking for a better name!) will launch mere days from now, on Monday -- but don't fret! We will not make the first stock purchase for at least two weeks, so there's plenty of time to learn the process of buying stocks directly from companies, without paying commissions. That's what a Foolish DRIP portfolio does: it buys stocks in small increments each month, directly from leading public companies, and side steps brokers completely. You can't get much more Foolish than that!

And the new Portfolio will be even more Foolish than the other Fool portfolios in one sense: we're going to discuss possible buys in the daily columns well before we announce the buy. We're going to dissect why we would want to invest for twenty years in each company that we consider -- or why we might not want to invest.

The decision-making process will be done in full view, each day, with a daily recap. Before too long, the portfolio will hold approximately five stocks and eventually grow to hold eight to ten stocks -- and we'll keep investing in these each month with regular payments.

Hey, what about your expenses? Will you show them?

Yes! Of course all expenses will be accounted for and deducted from the portfolio, and all stock returns will be measured against the S&P 500. (Don't worry, good Fools, we'll show you how to Foolishly track your stocks against the S&P, even while buying more stock each month through the direct investment plans.)

If you've wanted to start building a "direct investment" portfolio for yourself or for your children beginning with as little as $100, now is the perfect Foolish opportunity! Or if your savings account is growing... well, maybe you should put that money to work for you in stocks of great companies.

Hey? Aren't you guys worried that the market is too high?

Not at all. With this portfolio, we'll invest regularly each month -- so when our stocks go down, we'll be buying more. When the stocks are higher, we'll buy less. In fact, we kind of hope stocks come down for us over the next few years.

How are you starting the portfolio?

The Fool will be using the services of The Moneypaper. By opening an account with The Moneypaper, we avoid the hassle of having to buy each initial share of stock from a broker and having it mailed (and having to pay for that!) -- and we save money in the process. The Moneypaper also offers several additional services for investors that we will discuss.

The new DRIP Portfolio is being launched and run by Jeff Fischer (TMF Jeff) and Randy Befumo (TMF Templr), who also work on the Fool Portfolio and the Fool's Lunchtime News and Evening News.

Aside from the Foolishness of watching wealth grow over the years from virtually nothing, lessons will be learned by all as these two Fools debate in public which stocks belong in the portfolio. We could even see some brawls! Following the decisions, Randy and Jeff will break down the businesses invested in and teach investment valuation methods and a multitude of other such investing Foolery each business day. Five days a week, that is!

If you have any questions, comments, or suggestions, please send them along to the Fool!

Fool on!

© Copyright 1995-2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. The Motley Fool is a registered trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us