Fool Portfolio Report
Friday, February 14, 1997
by Jean Macaulay (MF Jeannie)

BOSTON, MA. (Feb. 14, 1997) -- Shakespeare abounds with romance and merriment, so why on this Cupid's Day does a quote from Macbeth come to mind?

"Here's a farmer, that hang'd himself on th' expectation of plenty."

Well, maybe it's because of the similarity between expectations of love and expectations of wealth. Spend some time in the various chatrooms and you'll find plenty of "expectations of plenty." Let's give a listen:

"Word is they're getting FDA approval next week and then this baby's gonna fly."

"Guy I know sez this little gem is good for a 3-bagger by May."

"Not sure what this company does, but the sector is hot, hot, hot."

"Buy 10k shares now, flip it tomorrow for 2 points easy."

Words of seduction. Heart-pounding excitement and adrenalin-pumping visions of life on the edge. Push that envelope and, of course, you'll come out a winner. Driving the Porche, babes at your feet, popping the Dom Perignon every night.

Beware the words of seduction. Financial growth, like love, rarely blossoms from a one night stand.

Valentine's Day is a good time to remind us of the principles of Foolish investing because it's not all that different from choosing a mate. First, find one that's personally attractive to you so it holds your interest. Examine the basic quality. Is there a track record of accomplishment, prospects for growth, the potential for improving your life into old age? Can you hold on through the inevitable ups and downs, and not get bored when things are ho-hum?

These tired old caveats drilled into us by our mothers about lasting love that brings us comfort in our golden years, begins to make sense only as we mature. It takes a lot of work in the beginning to see through the glamour and find the substance. Once the decision is made, we need to stick to it. With periodic attention and occasional periods of adjustment, your Foolish investment strategy will deliver the ultimate satisfaction down the road. Years from now, when you look at your portfolio, ah... that's when the romance begins.

Let's take a look at how Cupid treated our Foolish valentines today:

AMERICA ONLINE (NYSE: AOL) gave back $1/8 of its gains from yesterday, possibly reflecting continuing concern over the company's forecast of not hitting breakeven next quarter due to improvement expenses. Although some anticipate a flat share price for the next few months, others appear to be taking this uncertainty as an attractive buy-in point. AOL closed at $37 5/8.

3COM (Nasdaq: COMS) continues to stagger back from last week's body blow with a half-point gain today, closing at a bid of $41 5/8.

ATC COMMUNICATIONS (ATCT) also fighting back, posted a slight gain of 3/16, closing at 6 11/16 bid.

Long holders of KLA INSTRUMENTS (Nasdaq: KLAC) smiled indulgently as KLA took just a 50-cent breather off its awesome runup yesterday of $4 7/8. Still basking in the glow of last week's impressive earnings report, KLA closed at $48 1/8.

But ever-contrary IOMEGA (NYSE: IOM) forgot to call us the next morning. After a tantalizing peek yesterday over the $17 wall, it took back that closing one-eighth gain and then, adding insult to injury, docked us for another eighth. Iomega closed down $1/4 at $16 1/2.

Yesterday, roses were red and blue chips got bluer as the Dow crossed another milestone at 7000, so we don't feel too betrayed as the ones in our portfolio gave back a dollar here, a dollar there. All, that is, except for our funny valentine, NCR (NYSE: NCR), which remained unchanged. All eight shares of it.

This long term commitment we call the Fool's Portfolio ended Valentine's Day with a total value of $126,241.14 from a start of $50,000 just 30 months ago -- now those are numbers anyone can love.

(c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool.

TODAY'S NUMBERS


Stock Change Bid -------------------- AOL + 1/8 37.63 T --- 39.63 ATCT + 3/16 6.69 CHV - 1/2 68.38 GM - 5/8 58.63 IOM - 1/4 16.50 KLAC - 1/2 48.13 LU -1 1/8 57.63 MMM -1 1/8 85.13 NCR --- 35.00 COMS + 1/2 41.63
Day Month Year History FOOL -0.51% -7.20% -5.40% 152.48% S&P: -0.41% 2.84% 9.14% 76.37% NASDAQ: -0.26% -0.92% 5.90% 89.84% Rec'd # Security In At Now Change 5/17/95 2010 Iomega Cor 2.52 16.50 555.03% 8/5/94 680 AmOnline 7.27 37.63 417.33% 8/11/95 125 Chevron 50.28 68.38 35.98% 8/12/96 110 Minn M&M 65.68 85.13 29.61% 10/1/96 42 LucentTech 47.62 57.63 21.02% 8/12/96 280 Gen'l Moto 51.97 58.63 12.80% 8/24/95 130 KLA Instrm 44.71 48.13 7.63% 1/2/97 8 NCR 33.63 35.00 4.09% 8/12/96 130 AT&T 39.58 39.63 0.12% 8/13/96 250 3Com Corp. 46.86 41.63 -11.17% 10/22/96 600 ATC Comm. 22.94 6.69 -70.84% Rec'd # Security In At Value Change 5/17/95 2010 Iomega Cor 5063.13 33165.00 $28101.87 8/5/94 680 AmOnline 4945.56 25585.00 $20639.44 8/11/95 125 Chevron 6285.61 8546.88 $2261.27 8/12/96 110 Minn M&M 7224.44 9363.75 $2139.31 8/12/96 280 Gen'l Moto 14552.49 16415.00 $1862.51 8/24/95 130 KLA Instrm 5812.49 6256.25 $443.76 10/1/96 42 LucentTech 1999.88 2420.25 $420.37 1/2/97 8 NCR 269.00 280.00 $11.00 8/12/96 130 AT&T 5145.11 5151.25 $6.14 8/13/96 250 3Com Corp. 11714.99 10406.25 -$1308.74 10/22/96 600 ATC Comm. 13761.50 4012.50 -$9749.00 CASH $4639.01 TOTAL $126241.14