The Fribble
Tuesday, November 23, 1999

From Fool to fool Back to Fool

By Glen VanderKloot (

In 1985, we opened four DRIP accounts, one for each of our children to go toward their college expenses and one for us for retirement. We contributed $25 a month to each of our children's DRIPs and $50 a month to ours.

We invested the children in Kellogg, Quaker Oats, and Hershey. Each one grew fantastically to over $20,000, which was a big help toward tuition at private universities, room and board, books, etc. I was pretty good at this Foolishness!

For ourselves, I choose McDonald's since I am a fast-food junkie. We contributed monthly to this for four and a half years, accumulating 137 shares worth just over $4,000. At that time we bought a house (our first) and needed some extra money toward the down payment. We sold 37 shares, leaving us with 100 shares worth $2937.

We now had a huge mortgage payment and household repairs and improvements, so I felt I had to make some cutbacks. Being a fool, I stopped contributing to our McDonald's DRIP for our retirement, but at least did continue to fund and increased the monthly amount to our children's DRIPs for college.

Two of them now have their bachelor's degree. One is out working, one at law school and our youngest is a sophomore in college. It was time to take an inventory of our assets. Even though we have not contributed to our McDonald's DRIP for the last ten years it has continued to grow. Boy has it grown! Today we have (hold your hat) 470 shares worth over $20,000. Through regular growing dividends, stock splits, and increased valuation our investment has grown 683% over the last 10 years. Our net investment in those 470 shares is $1,841, which means since we began dripping we have seen a 1085% increase!

Seeing those numbers made me want to be a Fool once again. I could not do otherwise! So here we are back to DRIPs for our retirement: Intel, Johnson and Johnson, Coke, and Pfizer. I have rediscovered that being a Fool is pretty profitable and fantastic.

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