Rule Breaker Portfolio

Rule Breaker Portfolio
Obliterati
The e-Mensa Patient Proclamation

By Rick Aristotle Munarriz (TMF Edible)

MIAMI, FL (Nov. 12, 1999) -- Obliterati I propose. Death to the Intelligentsia! I'm not gunning for the radical, really. Only the logical. Only the natural. Brains have been tiered for way too long. It's not as if I mind minds. Grey matter matters. But isn't it amazing how the Internet has finally given the masses carte blanche in the Information Age?

The Internet has made us all smarter. Yet, by crashing the gates of access, it has also made us all the more curious. With information now suddenly attainable, we have become addicted to the privilege rather than lay woefully content with the milestone. That is good. That is real good.

Fairer trade. You see it in how effectively priced online merchandise has become. E-merchants respect the patron and recognize that the competition is a click away. You see it in the eyes of the Wise, too. Nothing short of the Internet could have brought the great full-service brokerage houses down to their $29.95 online commission knees.

We are not all online of course. But since we have evolved from a have and have not society into a dotcom and dotcom not community, the solution to social leveling is considerably easier. Introduce access. Open up the world of possibilities.

More information. Faster delivery of that information. Many of us found out that Iomega (NYSE: IOM) hired a new President and COO just as the board made it official last night -- not in the paper this morning. Bruce Albertson came out of retirement to assume the posts, which will probably expand to the CEO title as well after the company closes out its fiscal year.

Albertson was a General Electric (NYSE: GE) executive. He knows how to bring good things to life. More than that, he is also an alumnus of my alma mater, the University of Miami. Albertson was a Hurricane. He is going to have be one again. His expertise comes in the global marketing of appliances. While a Zip serves up lousy toast, Albertson's ability to set a brand name apart from similar commoditized peers is the key here. Iomega needs a whirlwind of flair. Iomega needs a Hurricane.

This change in the corporate climate looks like a strong move for Iomega. Beleaguered investors seem to agree since the stock was treated to a 12% pop today.

Then again, with the Nasdaq closing at yet another new high -- this time a 0.7% climb -- the winners were contagious. All of our Internet-based holdings had returns that more than tripled the Nasdaq gains. The S&P 500 was also strong, ticking 1.1% higher. But, today, the Fool rose the highest -- up an impressive 3.37%.

The Fool rose the highest? Yikes, that almost sounds elitist. Am I a miscast caste basher? No. The Rule Breaker's great returns have always been available, for free, since inception. Empowering the masses. Rewarding the classes.

It's time for an eMensa Patient Proclamation. Every click makes a smarter Fool. Every clicker makes a smarter Fool community. The literati is dead. It's Zip-tossed toast. Obliterati baby. Obliterati!

What do you think?
Please post your thoughts about tonight's report on our Rule Breaker Strategy board. Alternatively, if you have ideas, analysis, or questions about a particular Rule Breaker company, pull up a chair at the roundtable discussion on our Rule Breaker Companies board.






Rule Breaker Portfolio

11/12/99 Closing Numbers
Ticker Company Dly Pr Chg Price
AMGNAMGEN INC7/16$91.94
AMZNAMAZON.COM15/16$74.94
AOLAMERICA ONLINE1/2$148.75
ATHMAT HOME CORP CL A7/8$44.56
CATCATERPILLAR INCUnch.$55.00
CHVCHEVRON CORP7/8$91.38
DDDU PONT (EI) DE NEMOURS7/16$61.56
EBAYEBAY INC3/4$136.88
GTGOODYEAR TIRE & RUBBER CO9/16$36.81
IOMIOMEGA CORP7/16$4.00
SBUXSTARBUCKS CORP-1/16$28.25
TDFX3DFX INTERACTIVE1/4$9.75

  Day Week Month Year
To Date
Since
8/5/94
Annualized
Rule Breaker 3.37% 6.50% 10.03% 49.39% 1,402.23% 67.17%
S&P 500 1.06% 1.89% 2.43% 13.57% 204.55% 23.52%
S&P 500(DA) 1.06% 1.89% 2.43% 14.15% 218.81% 24.59%
NASDAQ .75% 3.83% 8.59% 46.90% 347.27% 32.85%

Trade Date # Shares Ticker Cost/Share Price LT % Val Chg
8/5/942200AOL0.917$148.7516,119.60%
9/9/972640AMZN3.188$74.942,250.97%
5/17/951960IOM1.280$4.00212.40%
12/16/98580AMGN42.889$91.94114.36%
12/4/98900ATHM28.040$44.5658.92%
2/26/99300EBAY100.527$136.8836.16%
2/23/99300CAT46.964$55.0017.11%
2/23/99180CHV79.169$91.3815.42%
2/20/98260DD58.844$61.564.62%
7/2/98470SBUX27.955$28.251.06%
2/23/99290GT48.715$36.81-24.43%
1/8/98425TDFX25.667$9.75-62.01%

Trade Date # Shares Ticker Cost Value LT $ Val Ch
8/5/942200AOL$2,017.62$327,250.00$325,232.40
9/9/972640AMZN$8,415.03$197,835.00$189,420.00
12/16/98580AMGN$24,875.50$53,323.75$28,448.25
12/4/98900ATHM$25,236.13$40,106.25$14,870.13
2/26/99300EBAY$30,158.00$41,062.50$10,904.50
5/17/951960IOM$2,509.63$7,840.00$5,330.37
2/23/99300CAT$14,089.25$16,500.00$2,410.75
2/23/99180CHV$14,250.50$16,447.50$2,197.00
2/20/98260DD$15,299.44$16,006.25$706.81
7/2/98470SBUX$13,138.63$13,277.50$138.88
2/23/99290GT$14,127.38$10,675.63($3,451.75)
1/8/98425TDFX$10,908.63$4,143.75($6,764.88)
  Cash: $6,381.51  
  Total: $750,849.60  



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.