Workshop Portfolio

<FOOLISH WORKSHOP>

Testing, Testing      

by Ethan Haskel (Cormend@aol.com)

Baltimore, MD (April 28, 1999) -- Pop Quiz.

1. The stock market is an example of an institution within our economy that exists to help people achieve their economic goals. The existence of this institution:

A. Results in an increase in the price of stocks.
B. Brings people who want to buy stocks together with those who want to sell stocks.
C. Helps predict stock earnings.

2. If the price of beef doubled and the price of poultry stayed the same, people would most likely buy:

A. More poultry and less beef.
B. Less poultry and more beef.
C. The same amount of poultry and beef.

A recent Harris poll found that only 52% of American adults knew the correct answer to the first question was B. Even fewer high school students, 38%, got it right. Only 58% of adults knew the correct answer to the second question was A.

The poll, consisting of 20 questions on basic economics topics like these, documents America's economic ignorance. Only 31% of adults received a score of C or better. Forty nine percent of adults and 66% of high school students flunked outright.

What does all this have to do with our Workshop corner here in Fooldom? More than you might expect. Here are just a few examples:

1. The same citizens who take these polls elect our country's politicians, the representatives who write the laws that determine our nation's economic health. How can we even begin to tackle complex financial issues like the national debt when many of us don't understand the principle of supply and demand? A healthy national economy is a prerequisite for healthy corporations and, thus, healthy stock prices.

2. Given our economic illiteracy, it shouldn't be surprising to hear that thousands of us are fleeced daily by financial schemes, hypesters, and others who prey on our ignorance. How can one discern the truly worthy Workshop screens from those doomed to failure, or worse, those ruses promulgated by the Wade Cooks of the world? Too many of us are poorly equipped to fight back.

3. Often the Workshop screens can develop a life of their own. We get caught up in jargon terms like dividend yield, relative strength, PEG, or RP ratio. A certain detachment can develop if we forget that the real reason stock prices increase (or decrease) usually has little to do with these indicators. Rather they depend on basic financial principles like inflation or productivity. Understanding what makes economies run keeps us tethered to reality.

Ahh, it feels better getting that off my chest! Time to come off the soapbox now. If you'd like to take the full economics test to see how you or your children rate, or learn more about how to better teach our students these vital topics, check out the website sponsored by the National Council on Economic Education.

******
Beating the S&P year-to-date returns (as of 04-17-99):

Schlumberger (NYSE: SLB)   +29.5%
Kimberly-Clark (NYSE: KMB) +12.5%
Campbell Soup (NYSE: CPB)  -22.7%
Ford Motor Co.  (NYSE: F)   +9.9%
BankAmerica  (NYSE: BAC)   +24.7%

Beating the S&P            +10.8%
S&P 500                    +11.2%

Compound Annual Growth Rate from 1-2-87:
Beating the S&P            +21.2%
S&P 500                    +18.3%

$10,000 invested on 1-2-87 now equals:
Beating the S&P              $105,700
S&P 500                       $78,700


Check out the latest file updates for the Workshop:
New Rankings | Workshop Returns


Workshop Portfolio


9/28/01 as of ~5:30:00 PM EDT

Ticker Company Price
Change
Daily Price
% Change
Price
AETAETNA INC NEW0.943.36%28.94
BABOEING CO(1.04)(3.02%)33.36
CATCATERPILLAR INC1.112.53%44.91
COGCABOT OIL & GAS 'A'0.693.59%19.90
DDDU PONT (EI) DE NEMOURS0.992.74%37.14
DGXQUEST DIAGNOSTICS(0.45)(0.73%)61.42
EKEASTMAN KODAK0.421.31%32.49
GMGENERAL MOTORS1.393.38%42.55
LHLABORATORY CORP AMER HLDG(NEW)1.141.42%81.21
MOPHILIP MORRIS COS(0.76)(1.55%)48.24
NEWPNEWPORT CORP0.261.90%13.97
NVRNVR INC(0.54)(0.38%)140.41
PKXPOHANG IRON & STEEL ADS1.097.51%15.61
PVNPROVIDIAN FINANCIAL1.075.64%20.04
QCOMQUALCOMM INC(0.40)(0.84%)47.16
RJRRJ REYNOLDS TOBACCO HLDGS(0.69)(1.19%)57.31
SLESARA LEE CORPUnchg.Unchg.21.09
UNFIUNITED NATURAL FOODS0.563.18%18.15
WMIWASTE MANAGEMENT(0.01)(0.04%)26.74

Overall Return -- total % Gained (Lost)
  Day Week Month Year
To Date
Since
Inception
(12/24/1998)
Workshop1.30%7.32%(12.02%)(20.66%)(18.91%)
Comparable S&P 500n/an/an/an/a(19.07%)
S&P 500 (DA)1.95%7.48%(8.33%)(21.22%)(14.88%)
NASDAQ2.02%4.71%(17.46%)(39.68%)(31.41%)
DJIA (DA)1.68%7.07%(11.07%)(17.86%)(2.22%)

Internal Rate of Return -- Annualized Rate of % Gained (Lost)
  Since Inception (12/24/1998)
Workshop(17.62%)
vs. S&P 500(17.63%)

Trade Date # Shares Ticker Cost/Share Price Total % Ret
1/8/0126MO40.9448.2417.82%
1/8/0122RJR50.1057.3114.39%
1/8/0167UNFI16.4518.1510.34%
12/24/9824CAT43.0844.914.24%
1/8/018NVR136.63140.412.77%
1/8/0140WMI27.4426.74(2.54%)
1/8/0150SLE22.5421.09(6.42%)
1/8/0161PKX17.8315.61(12.46%)
1/8/0115DD48.8337.14(23.95%)
1/8/0129AET38.1728.94(24.19%)
1/8/0139COG28.7519.90(30.79%)
1/8/0114QCOM75.5447.16(37.57%)
1/8/018LH134.6981.21(39.70%)
12/27/9918GM73.2642.55(41.92%)
1/8/0118BA59.5333.36(43.96%)
1/8/019DGX114.4961.42(46.35%)
12/27/9920EK65.0932.49(50.08%)
1/8/0120PVN55.5020.04(63.89%)
1/8/0115NEWP74.9613.97(81.36%)

Trade Date # Shares Ticker Total Cost Current Value Total Gain
1/8/0126MO$1,064.50$1,254.24$189.74
1/8/0122RJR$1,102.25$1,260.82$158.57
1/8/0167UNFI$1,102.12$1,216.05$113.93
12/24/9824CAT$1,034.00$1,077.84$43.84
1/8/018NVR$1,093.00$1,123.28$30.28
1/8/0140WMI$1,097.50$1,069.60($27.90)
1/8/0150SLE$1,126.88$1,054.50($72.38)
1/8/0161PKX$1,087.75$952.21($135.54)
1/8/0115DD$732.50$557.10($175.40)
1/8/0129AET$1,107.00$839.26($267.74)
1/8/0139COG$1,121.37$776.10($345.28)
1/8/0114QCOM$1,057.62$660.24($397.39)
1/8/018LH$1,077.50$649.68($427.82)
1/8/0118BA$1,071.50$600.48($471.02)
1/8/019DGX$1,030.44$552.78($477.66)
12/27/9918GM$1,318.62$765.90($552.73)
12/27/9920EK$1,301.75$649.80($651.95)
1/8/0120PVN$1,110.00$400.80($709.20)
1/8/0115NEWP$1,124.37$209.55($914.83)
 
Cash: 
Total: 
$10.80
$15,681.03
 

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

Note
Note: The Workshop Portfolio was launched on December 24, 1998, with $4,000 which was invested in the Foolish Four strategy. Approximately $15,000 was added on January 8, 2001, to support five additional mechanical strategies. At that time approximately $1000 was transfered out of the Foolish Four strategy to bring the Foolish Four into balance with the other strategies. (That's why the Foolish Four's overall return is not consistent with stock values.) Such rebalancing will take place each year among the strategies so that each will start out with approximately the same value at the begining of the year. No more cash additions are planned. The first four tables above show the overall performance of the portfolio. Below that we also track the performance of each component strategy. All transactions are announced publicly before being made, and returns are compared daily to the S&P 500 and the Dow. (Dividends are included in the yearly, historic and annualized returns.) Stocks are chosen using strategies developed by the Workshop community.