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Investment Philosophy

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MAY
We continued to lighten-up on oil stocks. The proceeds were used to invest in Internet infra-structure companies, such as, T, USW/GBLX, GMH, LMT, and ASND/LU.

APRIL
During the month of April, we lightened up on oil stocks. Texaco was an easy one to sell... after we had heard that they sold oil to Serbia during the war. The proceeds from the sales were used to increase our positions in Ascend Communications (ASND), Infoseek (SEEK) and Compaq Computer (CPQ).

The "Tech Wreck" was also taken advantage of by our income fund (which we do not publish on the www.) Starting with Spyglass (SPYG), relatively large purchases of tech. stocks were purchased immediately after they suffered from large corrections. Spyglass nearly double in price during the first week.

Hundreds of shares of Infoseek (SEEK), Lycos (LCOS), Compaq (CPQ), and Ascend (ASND) were also hoarded while they could be "bought low."

On March 1, 1999 we became more aggressive in purchasing energy stocks. Included in our portfolio are stocks, such as, ARCO, Texaco, Shell and Occidental Petroleum. Besides being natural contrarian picks, these stocks also pay a healthy dividend. For instance, Occidental Petroleum is yielding 6.72%.

Coincidentally, on March 2nd the Senate concluded that Y2K may cause more extensive trouble in poorer countries. "The year 2000 computer bug may set off civil unrest in poor countries, undermine economic growth in Asia, Latin America and Africa, and disrupt global trade in oil and other commodities"

On January 16, 1999, we consolidated what had been 3 separate funds into one new stock portfolio. This move reduced our position to less than 20% in equities. Eventually, the position will be reduced to about 5%. The intent was to sell at market highs. Then, prepare for increased volatility and "rolling sector corrections". We anticipate this type of market strategy will be in place until the effects of y2k are known. Thought has been given to obtaining copies of all of our stock certificates (just in case our brokerage house experiences y2k failures).

As the turnover to cash process continues, we will be striving for three things:

  1. obtain the highest interest rate in a money market instrument (that offers the most liquidity and the best insurance)
  2. maintain a small, long term, stock portfolio by attempting to buy at the market lows
  3. accumulate a unique "real asset" portfolio by attempting to buy at the market lows

Definitions

highest interest rate, high liquidity, best insured method to save cash - 13 week Treasury Bills

real assets - silver, gold, platinum, oil, gas, real estate

rolling sector corrections - severe declines in particular stock market areas, such as, technology or financial services

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