<THE RULE BREAKER PORTFOLIO>
Amgen's Drug & Starbucks' Joe
Plus, register Fool!
by Jeff Fischer ([email protected])
ALEXANDRIA, VA (Feb. 8, 1999) -- A whipsaw roller coaster ride ended with the S&P 500 ahead 0.3% and the Nasdaq up 1.4%. The Nasdaq actually rose 2.4% from its low point of the day. Now that's volatility.
Sudden Question: What is the point of this daily column?
This column doesn't serve to recite the performance of the stock market every day, or even the results of this portfolio. (Incidentally, the portfolio declined 2.9% to begin the week, as all of our New World companies sank like lead weights to a bed of catfish.) Instead, this column is meant to inform you about relevant news, educate Fools on our investing philosophy and its evolution, amuse, point to other interesting areas of Fooldom and the Web, keep us all on our toes, incite discussion, and, in the end, we hope to learn as much from you -- or more -- as you could possibly learn from us.
One of the best aspects of the Rule Breaker Portfolio is its relatively new Rule Breaker message board, where Fools gather daily to discuss this portfolio, to constructively argue issues, and to toss around the names of possible Rule Breaker stocks -- among other things.
So, related to the message boards, what is the purpose of this daily column? To tie everything together. We want to share this portfolio's results (especially long-term results), the news for the day, an ongoing education, throw on a dash of amusement, and mix it all together with the glue that makes the Fool interesting: you. The Fool's community on the message boards is what makes me click to fool.com everyday. The message boards are one of the most interesting places in Fooldom -- best to ask questions and learn from, but also (very much so) to develop friendships with other Fools while helping others, too.
If you're not using the message boards (or the Fool's portfolios), you should register to do so. It's absolutely free and there are absolutely no strings attached. If you've considered registering but you're overwhelmed by all of the message boards, sweat not. Simply register and then click on your favorite message boards and those will be the ones that you can automatically read each day or week. So take two minutes (that's all that it requires) to become a registered Fool. Registering is worth it for the Foolish password alone -- that is, the amusing password that you're given when you register on the Fool.
If you find that registering to become a Fool proves more awkward than your first kiss, or if it takes more than two minutes, simply e-mail me with your thoughts. It should be very easy, but I'll gladly talk it over with you if not. Incidentally, I'm registered as "TMF Jeff" on the Fool website. So take my advice: try to have a catchy or Foolish name in mind when you register your Foolish title -- I obviously didn't, and I now pay the price daily.
To register, click here: Become a Fool.
In two minutes, you'll have free message board access that you can customize for yourself, free portfolio tracking, a customized "My Fool" page, FoolMart discounts and special offers, and more. What you don't get is any hassle at all in your online life.
That was a long and unplanned way of saying that this column (and the Fool) is primarily about you and your participation. You gave the Fool it's only life in 1994 when it began (although Tom, David and TMF Fletch probably would have hung out online anyway, for months, talking to themselves even if you never began to show up), and you -- the community -- is what gives this site so much possibility in the future, too. In fact, this portfolio is largely because of and thanks to you. Many of its stocks came from ideas shared in our community.
This portfolio is also about kicking the market's behind -- and hard -- though we didn't do that today. Let's consider the good news, though. There actually was nothing but good news.
News Flash: Redefine Yourself or Stagnate
Rule Breakers are always striving to redefine and enlarge their markets and businesses. Amgen (Nasdaq: AMGN) and Starbucks (Nasdaq: SBUX) are doing just that.
Amgen's partner, Guilford Pharmaceuticals, shared today that it'll soon begin testing (on humans) its drug to treat Parkinson's disease. The drug is Giliadel, and Guilford is developing it with Amgen. It can regenerate nerve cells in people suffering from spinal injury, Parkinson's, Alzheimer's and other disorders. The drug has billion-dollar-plus potential for Amgen (and obviously for Guilford, too). Warning, though: it's far from certain to succeed and it should be a few years, optimally, before it's approved for sale -- if it is approved.
Starbucks announced its own new invention: a magazine called Joe. Starbucks has partnered with Time Warner (NYSE: TWX) to create a high-quality periodical that will first be offered in its 1,800 North American Starbucks locations in June. The magazine already has a substantial advertiser, General Motors (NYSE: GM). Joe will educate consumers on all things coffee -- but that's far from all. A coffeehouse is a place of culture, correct? So Joe will also cover art, music, travel, books, film, opinion, and run an article covering the Motley Fool (hey, it should). We first heard about this potential magazine several months ago on our Starbucks message board.
To close...
Have your Foolish name in mind and then register to be a Fool, if you haven't already. Then visit us on the Rule Breaker message board. The latest stock under discussion for being a potential Rule Breaker is CheckFree (Nasdaq: CKFR). Is it a Rule Breaker?
Finally, the new managers in the Bore Port announced a new buy and a sell tonight. Check those out. Also, check out Tom and David: Seattle tonight, Denver tomorrow, St. Louis on Wednesday. Details here.
Fool on!
--Jeff Fischer
What's up with Harry Jones today? Check out his portfolio now.
Stock Change Bid ---------------- AMZN -6 1/8 109.13 AMGN +1 5/8 121.25 AOL -5 7/8 159.00 T +2 1/2 91.00 ATHM -4 13/16100.31 DJT + 1/16 4.31 DD + 13/16 55.94 XON + 7/8 72.69 IP -1 1/2 43.19 IOM + 1/16 6.94 LU + 13/16100.69 SBUX + 3/16 50.06 TDFX - 3/16 11.56 |
Day Month Year History Annualized
R-BREAKER -2.95% -7.22% 4.08% 944.65% 68.20%
S&P: +0.35% -2.80% 1.50% 184.89% 26.12%
NASDAQ: +1.32% -4.03% 9.68% 233.93% 30.64%
Note: Yearly, historical and annualized returns for the
S&P include dividends
Rec'd # Security In At Now Change
8/5/94 1100 AmOnline 1.82 159.00 8647.32%
9/9/97 1320 Amazon.com 6.58 109.13 1558.63%
5/17/95 1960 Iomega Cor 1.28 6.94 441.82%
10/1/96 84 LucentTech 23.81 100.69 322.91%
8/12/96 130 AT&T 39.58 91.00 129.93%
12/4/98 450 @Home Corp 56.08 100.31 78.87%
4/30/97 -1170*Trump* 8.47 4.31 49.08%
12/16/98 290 Amgen 85.75 121.25 41.40%
2/20/98 200 Exxon 64.09 72.69 13.41%
2/20/98 215 DuPont 59.83 55.94 -6.51%
2/20/98 270 Int'l Pape 47.69 43.19 -9.44%
7/2/98 235 Starbucks 55.91 50.06 -10.46%
1/8/98 425 3Dfx 25.67 11.56 -54.95%
Rec'd # Security In At Value Change
8/5/94 1100 AmOnline 1999.47 174900.00 $172900.53
9/9/97 1320 Amazon.com 8684.60 144045.00 $135360.40
12/4/98 450 @Home Corp 25236.13 45140.63 $19904.50
5/17/95 1960 Iomega Cor 2509.60 13597.50 $11087.90
12/16/98 290 Amgen 24867.50 35162.50 $10295.00
8/12/96 130 AT&T 5145.11 11830.00 $6684.89
10/1/96 84 LucentTech 1999.88 8457.75 $6457.87
4/30/97 -1170*Trump* -9908.50 -5045.63 $4862.88
2/20/98 200 Exxon 12818.00 14537.50 $1719.50
2/20/98 215 DuPont 12864.25 12026.56 -$837.69
2/20/98 270 Int'l Pape 12876.75 11660.63 -$1216.13
7/2/98 235 Starbucks 13138.63 11764.69 -$1373.94
1/8/98 425 3Dfx 10908.63 4914.06 -$5994.56
CASH $39332.55
TOTAL $522323.74
Note: The Rule Breaker Portfolio was launched on August 5, 1994, with $50,000. Additional cash is never added, all transactions are shared and explained publicly before being made, and returns are compared daily to the S&P 500 (including dividends). For a history of all transactions, please click here.
</THE RULE BREAKER PORTFOLIO>
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