Boeing Best Dow Performer Over Last 20 Years
Boeing Co. stock, of the 30 included in the Dow Jones industrial average, made the biggest return by far to investors who plunked their money down 20 years ago, according to the Pioneer Group of investment funds.
Between Dec. 31, 1974 and Dec. 31, 1994, $10,000 invested in the aircraft maker returned $868,586 to those who took a flyer on the stock.
By comparison, No. 2 Coca Cola Co. returned $487,340 and Bethlehem Steel Corp., the worst of the bunch, was worth just $13,680.
The cost of living, meanwhile, would have demanded the $10,000 grow to $28,844 just to keep an investor’s buying power from eroding.
The second worst investment over that time period, by the way, was IBM.
Tuition need not be nightmare
Scary thought for parents whose child enters kindergarten this fall:
The cost of a four-year college education could reach $88,916 by the time he or she graduates from high school.
To help keep the family out of the poor house while junior frolics in a dormitory, the Mutual Fund Education Alliance has made a free brochure available.
“What You Should Know About Investing For College” contains information on projected college costs, worksheets, sample portfolios and how to fund them.
To request a copy, write to: College Brochure; Mutual Fund Education Alliance; 1900 Erie Street, Suite 120; Kansas City, MO. 64116.
Bond rally overextended
Don’t let this tempt you to take the high-risk route of selling short in the interest rate futures market.
But some market-watchers, including Ray Dalio of Bridgewater Associates, believe long-term interest rates are falling too far, too fast. He says, “We think that this U.S. bond move is way overdone.”
The market sees the economy slowing sharply, but it’s a decent bet that inflation will rear its ugly head. If so, rates will rise, and bond prices fall.
Tips on winning stocks
“The Astute Investor” has these tips for buying winning stocks:
Buy issues recommended by security analysts.
Look for recent insider buying.
Buy on signs of bottoming out after a price drop.
Balance your portfolio evenly among 15 stocks.
Be ready to sell stocks that have risen 50 percent - or sell after two years if they haven’t gone up at least 50 percent.