The Annual Foolish Four Switch in the Rule Breaker Portfolio
February 22, 1999
** This trade is being made under the regular portfolio policy which states that once The Fool announces an intention to trade, that trade will be made within the next week. For more detail, please read the "New Trades" section of the Rule Breaker Portfolio.**
SELLING:
- AT&T (NYSE: T)
- Exxon (NYSE: XON)
- International Paper (NYSE: IP)
- Lucent Technologies (NYSE: LU)
- $14,000 Caterpillar (NYSE: CAT)
- $14,000 Chevron (NYSE: CHV)
- $14,000 Goodyear Tire (NYSE: GT)
- $2,700 DuPont (NYSE: DD) (to balance it)
Like all Foolish Four investors, every twelve months The Motley Fool's Rule Breaker Portfolio updates its Fool Four holdings by running the numbers, seeing which Dow heavies make the list and which don't, and then selling and buying accordingly. As highlighted above, at this time AT&T, Exxon and International Paper are no longer part of the Foolish Four, so we'll sell them. We'll be replacing them with Caterpillar, Chevron and Goodyear Tire. We're also selling Lucent Technologies because it was spun-off from Foolish Four holding AT&T, and was held as part of the Foolish Four strategy. It, in effect, falls off the list of holdings with AT&T.
This trade will be made Tuesday morning at the open. We normally make our trades within five days, but we'll make this trade on day one because the Foolish Four stocks can change on a daily basis. We'd rather avoid that confusion and buy the correct stocks as of tomorrow.
Please note that we'll also buy $2,700 more of DuPont (NYSE: DD) in order to balance the size of our four Foolish Four positions. We'll own about $14,000 of each.
To answer any and all questions you might have about the simple, market-beating, mutual-fund smashing Foolish Four approach and its variations, please see the Fool's Foolish Four area. For more information on this trade announcement, please see the February 22, 1999 Rule Breaker Port.
Rule Breaker Foolish Four Transaction Stats
On February 23, 1999, the Rule Breaker made its annual Foolish Four switch, selling the previous Fool Four stocks that are no longer on the list, and buying the new qualifiers. The Port sold AT&T (NYSE: T), Exxon (NYSE: XON), International Paper (NYSE: IP), and Lucent Technologies (NYSE: LU). It bought Caterpillar (NYSE: CAT), Chevron (NYSE: CHV), Goodyear Tire (NYSE: GT), and some additional DuPont (NYSE: DD) in order to balance the holding. The trade stats follow. Fool on!
Tot. Dollar Amt. Action Ticker Price Shares (incl.$8 commission) Sold XON $68.50 200 $13,692.00 Sold IP 43.13 270 11,635.75 Sold LU 108.18 84 9,079.75 Sold T 86.56 130 11,245.12 Bought CHV $79.13 180 $14,250.50 Bought CAT 46.94 300 14,089.25 Bought DD 53.97 45 2,435.18 (bought to balance) Bought GT 48.69 290 14,127.37
Fool on!