Tuesday, June 02, 1998
Cash-King Portfolio
Report
by Tom Gardner
([email protected])
Alexandria, VA (June 2, 1998) -- Today marks a new beginning for the Cash-King Portfolio -- the inauguration of a new brand of Foolishness. Sunlight in from the East. The cap-gun burst to start a new footrace. John Locke's tabula rasa. A white canvas awaiting our first brush stroke.
Hear ye, hear ye!
In selecting the 8th position for our Cash-King account, we'll be turning to you -- the community at large -- for guidance. This marks the first time that any financial company has sought the advantages of worldwide teamwork in building a market-beating portfolio. We don't want to overrate this action, but it does seem pretty cool to us. The Motley Fool -- Internet Enabled. The Motley Fool -- by the people, for the people. The Motley Fool -- this is not your father's Oldsmobile.
About a month ago, Al, Phil, Rob and I talked about the logistics of settling on our next investment by turning to you for assistance. Here's what we came up with:
Step 1. Beginning today, we'll be taking submissions for our next purchase in a new message folder entitled Cash-King Companies. Then, over the next seven days, we'll welcome all comers. So you think Cisco should be our next Cash-King selection? How about Dell? Or Berkshire Hathaway B shares? Or a foreign stock? Can you make a compelling case for a Cash-Prince -- Henry the 5th before taking the throne and France? Lay it on us, thick.
Step 2. Out of the slew of your recommendations, Team C-K will select the five most compelling nominations. Barring technical difficulties, we'll then open up an online poll late next week, and you can cast your vote for the winner. In keeping with the standards set by the People's Choice Awards (we had to give them some credit for all this), whichever of the five nominees receives the most votes will be added to the C-K Portfolio promptly. We'll be investing the remainder of our cash position, $2,037.63, into this 8th company -- making it the largest starting position in the portfolio.
Step 3. We'll watch the business that we partially own for a decade to come.
In order to keep things organized, we're going to ask that you stick to a basic format for your submissions. Here it is:
a. The name of the company and a short description of its business.
b. A listing of the basic Cash-King criteria the company does and does not meet.
c. A basic explanation of why the nominee doesn't meet certain criteria and a justification of why that isn't critically negative.
d. A few emotional words on your part -- sharing your love for the company's product or service and for its business model.
In the following three days, I'll conduct short interviews with Al, Phil, and Rob -- as they share what qualities we'll be looking for in the nominated businesses. Those interviews will be posted here.
Also, if you haven't read through our 11 Steps to Cash-King Investing, well geez, we've linked it enough. Get off your duff. It only takes 30 minutes. Click here: The Eleven Steps to Cash-King Investing. That will provide you with the context for the sort of nominations we'll be studying carefully (though we're willing to break any aspects of that mold if great ideas warrant it).
If you have any questions about this process, please drop us a note in the Cash-King Strategy Folder.
And then yes, please post your submissions in the new Cash-King Companies Folder.
We expect this real-world exercise to remind us of numerous Foolish principles -- 1) the importance of focusing on the quality of a business when investing; 2) the value of interactive Folly, with thousands of trained investors making contributions each day; 3) the benefits of managing a portfolio diversified into a dozen investments (and not too many more); and 4) our committment to having fun while we thump the market and build up our invested savings in the years ahead.
Fool on -- we look forward to you showin' us whatcha got in the week ahead.
Tom Gardner
TODAY'S
NUMBERS
Stock Change Bid ---------------- AXP - 7/16 103.38 CHV - 1/8 78.88 KO + 1/8 79.63 GPS + 5/8 55.13 EK -1 5/16 71.25 XON - 11/16 69.94 GM +1 7/8 73.00 INTC +1 1/8 69.13 MSFT +1 11/16 85.44 PFE - 7/16 103.38 TROW + 1/2 34.88 |
Day Month Year History
C-K +0.44% -0.08% 5.67% 5.67%
S&P: +0.19% 0.20% 9.16% 9.16%
NASDAQ: +0.86% -0.96% 6.59% 6.59%
Cash-King Stocks
Rec'd # Security In At Now Change
2/3/98 22 Pfizer 82.30 103.38 25.61%
2/27/98 27 Coca-Cola 69.11 79.63 15.22%
2/3/98 24 Microsoft 78.27 85.44 9.16%
5/1/98 37 Gap Inc. 51.09 55.13 7.90%
2/6/98 56 T. Rowe Pr 33.67 34.88 3.57%
5/26/98 18 American E 104.07 103.38 -0.66%
2/13/98 22 Intel 84.67 69.13 -18.36%
Foolish Four Stocks
Rec'd # Security In At Value Change
3/12/98 20 Eastman Ko 63.15 71.25 12.83%
3/12/98 20 Exxon 64.34 69.94 8.71%
3/12/98 17 General Mo 72.41 73.00 0.82%
3/12/98 15 Chevron 83.34 78.88 -5.36%
Cash-King Stocks
Rec'd # Security In At Value Change
2/3/98 22 Pfizer 1810.58 2274.25 $463.67
2/27/98 27 Coca-Cola 1865.89 2149.88 $283.99
2/3/98 24 Microsoft 1878.45 2050.50 $172.05
5/1/98 37 Gap Inc. 1890.33 2039.63 $149.30
2/6/98 56 T. Rowe Pr 1885.70 1953.00 $67.30
5/26/98 18 American E 1873.20 1860.75 -$12.45
2/13/98 22 Intel 1862.83 1520.75 -$342.08
Foolish Four Stocks
Rec'd # Security In At Value Change
3/12/98 20 Eastman Ko 1262.95 1425.00 $162.05
3/12/98 20 Exxon 1286.70 1398.75 $112.05
3/12/98 17 General Mo 1230.89 1241.00 $10.11
3/12/98 15 Chevron 1250.14 1183.13 -$67.02
CASH $2037.63
TOTAL $21134.26
*The year for the S&P and Nasdaq will be as of 02/03/98
