Tips on whether you should purchase single stocks or funds
April 11, 1999. Independent investors are getting a little more skeptical of mutual funds. The
returns on many funds are not beating the averages. So, what they are doing is buying and maintaining their own
portfolio’s. Like I wrote in back issues, funds are getting anywhere between 3% to 7% year to date. However, single
issues, because of tech stocks, are earning a whooping 30% to 70% returns year to date. That is a big difference!
Will it continue is anybody’s guess. From where I stand, tech is going to be the new game in
town for the next 10 years. But of course, many investors do not want to put their money into these high voltage
stocks that may tank at anytime. High risk is not their nature. So what do you do? You want to hold good stocks
and not get into a mutual fund, yet have the fun of doing everything yourself? And be totally diversified?
Salomon Smith Barney offers these suggestions, and I concur that this is a good group of companies:
BankAmerica Corp (BAC); Cisco Systems Inc. (CSCO); Compaq Computer (CPQ); LM Ericsson AB (ERICY);
Fluor (FLR); Intel (INTC); Masco Corp (MAS), McDonald’s (MCD), Pfizer Inc. (PFE); Philip Morris Cos (MO), Promus
Hotel Corp (PRH); Raytheon Co (RTN/A); Schlumberger Ltd (SLB); Temple-Inland Inc (TIN).