Boring Portfolio

Boring Portfolio
Boring Portfolio Takes a Holiday


By Brian Bauer (TMF Hoops) (TMF Hoops)

Alexandria, VA (Oct. 25, 1999) -- What the heck is going to happen to the Boring Portfolio now that Dale has left as manager? This question has been bandied about here at Fool HQ and on the Boring Stocks message board since Dale announced his decision to take on new challenges outside the Fool. (In case you missed the scoop on what Dale is up to now, check out his Fool on the Hill column from Oct. 14.)

So, here is what's up: The Boring Portfolio is going to take a short "vacation" while we look for a new portfolio manager and evaluate the portfolio as to how it fits with our other real-money portfolios and editorial features. During this period we'll continue to track the Portfolio and its current holdings with no intention of changing the portfolio until a new manager is on board.

Dale and Alex constructed this as a long-term portfolio and selected these holdings as businesses to own for many years, and we're in no hurry to change things. Until a new manager takes over the portfolio, the Boring lineup will remain American Power Conversion (Nasdaq: APCC), Berkshire Hathaway (NYSE: BRK.B), Carlisle Companies (NYSE: CSL), Costco Wholesale (Nasdaq: COST), and Gateway (NYSE: GTW).

During this period, we will reduce the frequency of Port reports from three times a week to a single weekly report on Mondays. Fool writers and members of the community will contribute columns covering subjects related to the portfolio, Boring companies, value investing, fundamental analysis and valuation, and other related investing topics.

The Boring Portfolio's value-oriented approach both contrasts with and complements the approaches of our other real-money portfolios. As Dale has pointed out many times, the traditional concept of "value" investing is so broad and vague that it is essentially meaningless. For Dale's thoughts on this and his portfolio "report card," be sure to read Friday's portfolio report.

As the portfolio undergoes some changes in the months ahead, we encourage you to participate in its evolution by sharing your comments, ideas, and suggestions on the Boring Stocks message board, or if you prefer, drop me a note at brianb@fool.com. One of the major successes of this portfolio has been the insightful and helpful community that has developed on the Boring message board. Just recently a discussion has started regarding the criteria that define a "Boring company."

And finally...
Boring Port holding Berkshire Hathaway announced that it will take a majority stake in electricity and natural gas utility company MidAmerican Energy Holdings (NYSE: MEC). For more on the deal, see our news coverage from this morning.

Have a great week -- and good luck, Dale!


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Boring Portfolio

10/25/99 Closing Numbers
Ticker Company Dly Pr Chg Price
APCCAMER POWER CONVERSION-11/16$20.13
BRK.BBERKSHIRE HATHAWAY'B'25$1,834.00
COSTCOSTCO WHOLESALE CORP-9/16$74.00
CSLCARLISLE COSUnch.$32.38
GTWGATEWAY INC-1 7/16$62.63

  Day Week Month Year
To Date
Since
10/1/98
Annualized
Boring -.53% -.53% 4.19% 2.18% 27.97% 25.99%
S&P 500 -.62% -.62% .85% 5.24% 27.19% 25.27%
S&P 500(DA) -.62% -.62% .85% 5.82% 28.90% 26.84%
NASDAQ -.02% -.02% 2.54% 28.42% 66.25% 60.97%

Trade Date # Shares Ticker Cost/Share Price LT % Val Chg
2/9/99200GTW36.278$62.6372.63%
4/20/99460APCC14.477$20.1339.02%
8/13/96200CSL26.325$32.3822.98%
9/13/99110COST69.101$74.007.09%
12/31/9812BRK.B2,278.333$1,834.00-19.50%

Trade Date # Shares Ticker Cost Value LT $ Val Ch
2/9/99200GTW$7,255.50$12,525.00$5,269.50
4/20/99460APCC$6,659.25$9,257.50$2,598.25
8/13/96200CSL$5,264.99$6,475.00$1,210.01
9/13/99110COST$7,601.13$8,140.00$538.88
12/31/9812BRK.B$27,340.00$22,008.00($5,332.00)
  Cash: $10,490.52  
  Total: $68,896.02  

Key
• S&P 500 (DA) = dividend adjusted. Dividends have been added to the total return of the index.