Rule Breaker Portfolio

<THE RULE BREAKER PORTFOLIO>

Foolishness Supersedes Greenspan
Plus, deliberate deliberations on 3dfx

By Jeff Fischer (TMF Jeff)

ALEXANDRIA, VA (August 24, 1999) -- The stock market once again demonstrated its usual antics, moving up, down, sideways, up -- shaking about all day, while the drones who are made drones by watching it, watched it. It has been said for months that today was important. The Federal Reserve met today regarding interest rates. So, let's discuss the result of the Fed's meeting.

First, they gathered around a table with pitchers of cold water and... wait. You know what? We're long-term investors. Who cares what happened?

You can read any other finance-related article to get the vanilla news coverage. Just be certain to read the Wisdom-heavy words with your Foolish long-term view. In three years or less, you won't likely remember any of the articles that you read today anyway. Nor would you likely remember any details from this day if you spend all of it reading financial gibberish. (Nobody knows what will happen next anyhow.)

Perhaps what you'll remember most in the years ahead, actually, is this paragraph -- simply because it is different. Perhaps, rather than reading all of the busy news about the day, you'll create a lasting memory by being Foolish right now. Turn off the computer, rise from the chair, and do something completely different -- something truly Foolish and worthwhile.

Fool on!

P.S. If you really want to continue reading something, see today's Fribble.

P.P.S. 3dfx (Nasdaq: TDFX) got whacked. We have to digest the news and we will certainly discuss it here soon, of course. We have never been reactionaries. Some may say that we're deliberate. We are. We're long term. The message board is digesting the news post by post, and Fools there have summarized the conference call.






Rule Breaker Portfolio

8/24/99 Closing Numbers
 Ticker   Company   Dly Pr Chg   Price 
AMGN   AMGEN INC                     -2 13/16    $80.88
AMZN   AMAZON.COM                    11/16    $120.06
AOL   AMERICA ONLINE                -1/4    $98.75
ATHM   AT HOME CORP CL A             3/4    $41.69
CAT   CATERPILLAR INC               1/16    $63.00
CHV   CHEVRON CORP                  Unch.    $95.94
DD   DU PONT (EI) DE NEMOURS       Unch.    $71.88
DJT   TRUMP HOTELS & CASINO RES    -1/16    $4.56
EBAY   EBAY INC                      -5 9/16    $118.88
GT   GOODYEAR TIRE & RUBBER CO    -1/4    $57.00
IOM   IOMEGA CORP                   -1/16    $3.63
SBUX   STARBUCKS CORP                1/4    $21.75
TDFX   3DFX INTERACTIVE              -3 7/8    $10.50

  Day Week Month Year
To Date
Since
7/5/94
Annualized
Rule Breaker -.28% 3.27% 6.39% 18.45% 1,093.49% 62.05%
S&P 500 .24% 2.01% 2.62% 10.92% 205.46% 24.29%
S&P 500(DA) .23% 1.92% 2.49% 10.98% 220.11% 25.42%
NASDAQ 1.21% 3.93% 4.32% 25.52% 291.19% 30.42%
DJIA -.15% 1.65% 5.90% 22.89% 208.92% 24.56%

 Trade Date   # Shares   Ticker   Cost/Share   Price   LT % Val Chg 
  8/5/94   2200 AOL     0.917   $98.75   10,667.64%
  9/9/97   1320 AMZN     6.375   $120.06   1,783.33%
  5/17/95   1960 IOM     1.280   $3.63   183.11%
  12/16/98   580 AMGN     42.889   $80.88   88.57%
  12/4/98   900 ATHM     28.040   $41.69   48.67%
  4/30/97   -1170 DJT     8.469   $4.56   46.12%
  2/23/99   300 CAT     46.964   $63.00   34.14%
  2/20/98   260 DD     58.844   $71.88   22.15%
  2/23/99   180 CHV     79.169   $95.94   21.18%
  2/26/99   300 EBAY     100.527   $118.88   18.25%
  2/23/99   290 GT     48.715   $57.00   17.01%
  7/2/98   470 SBUX     27.955   $21.75   -22.20%
  1/8/98   425 TDFX     25.667   $10.50   -59.09%

 Trade Date   # Shares   Ticker   Cost   Value   LT $ Val Ch 
  8/5/94   2200 AOL     $2,017.62   $217,250.00   $215,232.40
  9/9/97   1320 AMZN     $8,415.03   $158,482.50   $150,067.50
  12/16/98   580 AMGN     $24,875.50   $46,907.50   $22,032.00
  12/4/98   900 ATHM     $25,236.13   $37,518.75   $12,282.63
  2/26/99   300 EBAY     $30,158.00   $35,662.50   $5,504.50
  2/23/99   300 CAT     $14,089.25   $18,900.00   $4,810.75
  5/17/95   1960 IOM     $2,509.63   $7,105.00   $4,595.37
  4/30/97   -1170 DJT     ($9,908.16)   ($5,338.13)   $4,570.04
  2/20/98   260 DD     $15,299.44   $18,687.50   $3,388.06
  2/23/99   180 CHV     $14,250.50   $17,268.75   $3,018.25
  2/23/99   290 GT     $14,127.38   $16,530.00   $2,402.63
  7/2/98   470 SBUX     $13,138.63   $10,222.50   ($2,916.13)
  1/8/98   425 TDFX     $10,908.63   $4,462.50   ($6,446.13)
  Cash: $11,675.98  
  Total: $595,335.40  



Note
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.