Rule Breaker Portfolio

Fool Portfolio Report
Tuesday, December 23, 1997
by David Gardner (

CAPTIVA ISLAND, FL (Dec. 23, 1997) -- A rather inconsequential day for the Fool Portfolio, bobbing around with the market averages. Most of our stocks were down with the market, and there was little news of any account. The day was notable primarily for Iomega's 2-for-1 share split, which occurred as of market close yesterday (or, as of market open today). Those who don't check stock prices every day (and bravo to you and yours) may have been shocked to see ol' IOM tipping the scales at twelve pounds some.

If you're new to stock splits, have we got a great link for you: it's our Fool FAQ on stock splits, oft-read and very useful, there in the Foolish Help Desk. The FAQ section has info on everything from Liquidity and Margin to Spiders and SOES Bandits. It's a great place to bone up, whether you're new at all this or an old hand looking to broaden your investment knowledge.

This is a seriously abbreviated report today, because I'm supposedly on Christmas vacation (that's what my wife and children believe, anyway, and I hope to honor their belief). I can't write anything nearly meaningful enough in this short space to rival the great report yesterday from Jeff Fischer. It's an absolute must read, if you haven't already. In it, Jeff examines the primary mistakes we made in 1997. That's a great thing to do at the end of every year, prior to taking huge, deep breaths of fresh air as one embarks upon the wonderful adventure of a new year.

A few things of note: First, if you have AOL, join our Industry Fools tonight at 10 PM ET for a look at many of the companies we and the markets will be focusing on in 1998.

Second, our new book You Have More Than You Think is getting distributed nationwide as I write, and is already popping up in stores. It's also available for purchase at Amazon, on 24 hours shipping. Darn thing's already discounted 30%. Yikes! Anyway, we worked extremely hard on that sucker this year, and hope that we've penned a book about money that will be around a long time, that you can hand to anyone and have been instrumental in improving his or her life. That's the aim, anyway. The theme is in the title.

Needless to say, makes a great holiday gift! (Plug, plug, plug... glug, glug, glug.)

I want to close by linking to an e-mailed holiday card we received this week. Not only is it kinda fun on its own (animated and with tune) -- bringing with it some of that "gee-whiz" factor enabling you to show off your computer to the whole family -- but it also comes to us direct from Iceland. That's the fun, and the promise, of the Internet, that a Foolish fellow like Astvaldur Heidarsson can find Folly and log in regularly and learn and contribute. I hope one day to meet Astvaldur, but whether any of us do or no, we can all enjoy his card. It's sent to the Motley Fool, which (as anyone who reads this column regularly knows by now) is not those of us who work in Fool HQ each day, but rather ALL of us who come in and breathe life into the place, day in and day out.

I'm a Fool, you're a Fool, and guys like Astvaldur are Fools too, and I thank God that in 1997 we have found more Fools than ever before. The world becomes a better and better place to live, and the Fool Charity Fund's coffers bulge.

And the year ahead, 1998, will be a grand-slam smasheroo for ALL involved.

Fool on,

David Gardner, December 23, 1997

Industry Focus '98 Auditorium Event. As we roll out of 1997 and into 1998, many of you are looking for ideas on where to put your money for 1998. Join us on Tuesday night, December 23, at 10pm EST for a discussion of the year ahead in a number of industries including Electronic Contract Manufacturing, Semiconductor Capital Equipment and PC Manufacturers. Randy Befumo (TMF Templr), and company will be onstage taking your questions and talking about the year ahead, as well as discussing their stock choices for this year's Industry Focus research report.

Today's FoolWatch: all the latest in Fooldom.

Have You Given? The Fool Charity Fund

Stock Change Bid ---------------- AMZN - 13/16 55.50 AOL -1 13/16 88.06 T -2 1/4 61.69 CHV - 1/2 74.69 DJT --- 7.00 GM - 1/2 59.38 INVX - 9/16 20.44 IOM + 11/50 12.50 KLAC -2 15/16 36.88 LU + 1/4 77.19 MMM - 3/4 83.50 RTN.A -1 9/16 48.19 COMS + 9/16 33.31

Day Month Year History FOOL -0.89% -1.47% 22.26% 226.28% S&P: -1.53% -1.70% 26.78% 104.87% NASDAQ: -1.44% -5.66% 16.95% 109.66% Rec'd # Security In At Now Change 8/5/94 355 AmOnline 7.27 88.06 1110.84% 5/17/95 1960 Iomega Cor 1.28 12.50 876.25% 10/1/96 42 LucentTech 47.62 77.19 62.10% 8/12/96 130 AT&T 39.58 61.69 55.86% 8/11/95 125 Chevron 50.28 74.69 48.53% 9/9/97 290 38.22 55.50 45.21% 8/12/96 110 Minn M&M 65.68 83.50 27.14% 4/30/97 -1170 *Trump* 8.47 7.00 17.34% 8/12/96 280 Gen'l Moto 51.97 59.38 14.24% 12/19/97 17Raytheon 53.21 48.19 -9.44% 8/24/95 130 KLA-Tencor 44.71 36.88 -17.53% 6/26/97 325 Innovex 27.71 20.44 -26.24% 8/13/96 250 3Com Corp. 46.86 33.31 -28.92% Rec'd # Security In At Value Change 8/5/94 355 AmOnline 2581.87 31262.19 $28680.32 5/17/95 1960 Iomega Cor 2509.60 24500.00 $21990.40 9/9/97 290 11084.24 16095.00 $5010.76 8/11/95 125 Chevron 6285.61 9335.94 $3050.33 8/12/96 130 AT&T 5145.11 8019.38 $2874.27 8/12/96 280 Gen'l Moto 14552.49 16625.00 $2072.51 8/12/96 110 Minn M&M 7224.44 9185.00 $1960.56 4/30/97 -1170*Trump* -9908.50 -8190.00 $1718.50 10/1/96 42 LucentTech 1999.88 3241.88 $1242.00 12/19/97 17Raytheon 904.57 819.19 -$85.38 8/24/95 130 KLA-Tencor 5812.49 4793.75 -$1018.74 6/26/97 325 Innovex 9005.62 6642.19 -$2363.43 8/13/96 250 3Com Corp. 11715.99 8328.13 -$3387.87 CASH $32484.33 TOTAL $163141.96

The Fool Portfolio was launched on August 5, 1994, with $50,000. It was renamed the Rule Breaker Portfolio in October 1998. The investing strategy began with the first investments of the Fool Port and has evolved with time and experience. In July 2001, the portfolio began adding $12,500 each quarter (We missed Jan. 2002, so we added $25,000 in April 2002). We skip a quarter if we have enough uninvested cash or cash available in stocks we would prefer to sell to make new investments. All transactions are shared and explained publicly before being made, and returns are compared in each week's column to the S&P 500 (including dividends where noted) and the Nasdaq composite. For a history of all transactions, please click here.