Drip Portfolio Report
Wednesday, October 22, 1997
by Jeff Fischer (JeffF@fool.com)
ALEXANDRIA, VA (Oct. 22, 1997) -- As fate would have it, Monday I wrote that we were calling Harris Trust to get our Intel DRIP account number, and yesterday when I went home, that very information was sitting in my mailbox. We've since received email from many people stating that they've been getting their INTEL (Nasdaq: INTC) account statements from Harris Trust over the past few days. Hopefully, then, not too many of us called them up and bothered them for the information, which was already on its way through the trusty old mail system.
So, many of us that sent in our checks by the first week of September are now receiving the handsome Intel statements from Harris. A few questions have arisen following this and I'll answer some of them right now.
The DRIP statements show each of us as having one share of Intel stock, but doesn't give the price that it was bought at. That information should have come from the Moneypaper or from whatever service or broker you used to buy your first share of Intel. If Moneypaper never sent you confirmation, we have word that they're working on it. It isn't very often that a few thousand new subscribers fall into your lap, lick your face, and send you a check. Moneypaper has done their best to keep up with all the paperwork, and if you didn't receive a buy confirmation and your refund check for the "cushion" that you sent in, you should receive that very soon. The company states that they sent out a large batch of checks and transaction reports just last week. We paid $94.69 for our first share of Intel. Most of the stock was bought together, so you likely paid $93 to $95 as well.
Now, some people have questions regarding the (once again: handsome) statement that is Intel's DRIP account form. On the top right of the form, it says:
Next Investment: 11/03/1997
Maximum per month: $15,000.00
In an ideal world, we'd all be sending Intel $15,000 this month, but that's not quite the case for us, at least. We'll send them 2% of that -- 300 smackers in American dollars, not in pesos, as Randy suggested. Some people read the top three lines reprinted above and wrote us, "So I MUST send in at least $25.00 per month?"
Nope. Below those three lines listed above, the statement says:
Voluntary Contribution U.S.$: ____________
It's voluntary. Those numbers are merely the required minimum and maximum amount that you must send when you do invest. Now, the money is invested as close to the first day of each month as possible, and for November that means the Third. We'll be sending our check tomorrow just to make sure we don't miss the plane. If you're unclear why we're sending $300, please see the end of Monday's recap for a brief explanation. Whatever amount you personally send in, write that amount on the statement's line that looks like the one reprinted above, tear off the top portion of your statement, be certain to put your account number on your check, and write "INTC DRIP" just to help further. Also, on the memo part of you check, after all that other info write a little "Hello!" and be sure to put a smiley face. We want Harris Trust to be either unbearably happy or terminally insane after we're done sending them regular checks for twenty years. So please do drop them a little hello on your check.
Send the top portion of your statement and your check in the grey envelope provided by Harris Trust. Stamp it, put your return address on it, perhaps title yourself "Fool," and put another "Hello!" there (we might be overdoing this, but excessive Foolery in a world of business suits and formality is actually good), and send off the envelope. Within a week or two you'll receive back from Harris Trust a statement stating that your check was received as well as confirmation on the amount received, along with another envelope for your next investment. Then, before the end of the month -- so in another two weeks or so, after this -- you'll receive your more complete monthly statement that shows how many shares you own, what your last purchase price was, and anything else. Save these monthly statements. File them away. Keep organized. You'll be glad you did come tax time.
I wanted to get to the recent earnings and news from COCA-COLA (NYSE: KO) today, too, but we'll have to save that for next time. Coke isn't going anywhere, anyway, and it works out for the best this way right now, actually, as I don't care to start breaking down the numbers like some heartless beast so soon after the CEO's passing.
Mr. Goizueta, the CEO of Coca-Cola since 1981, came to America from Cuba in 1961 with $40 in his pocket and 100 shares of Coca-Cola stock. In the seventeen years that he was CEO, the value of Coca-Cola's business rose from $4 billion to $150 billion -- unprecedented growth. Mr. Goizueta was largely responsible for Diet Coke, and for New Coke (which increased total sales, too, anyway), and for leading the company through one of the most prosperous times its ever seen.
No, we don't think Coca-Cola is in trouble now that he's gone. It's a sad passing -- the end of an era -- but the company has one of the best managements that it has had in its history. Management has learned a great deal from Mr. Goizueta, and his lessons will surely be passed down through the generations of management to come.
Stock Close Change Intel $83 15/16 -1 3/16 Day Month Year History Drip: +0.00% 0.00% 0.00% 0.00% S&P: +0.00% 0.00% 0.00% 0.00% NASDAQ: +0.00% 0.00% 0.00% 0.00% Rec'd # Security In At 9/8/97 1 Intel $94.69 Base: $800.00 Expenses: $ 55.50 (Moneypaper) Purchases: See above Cash: $649.10 Total Value: $735.00 apprx.
The portfolio began with $500 on July 28, 1997, adds $100 on the 15th of every month, and the goal is to have $150,000 by August of the year 2017.