Beating the Street (50 page)

Mexico, telephone company of,
258
–259,
260

Michigan Public Service Commission,
253
,
254
–55,
297
,
314

Middle South Utilities,
245

Miller, Paul,
295

MLPs,
see
master limited partnerships

Money Game, The
(Smith),
78

money-market accounts,
307

money-market funds,
56

Montedison,
127
,
128

Montgomery Securities,
269
,
282

Moore, Bobbie and Jeff,
101

Morris County (N.J.) Savings Bank,
199

Morrissey, Joan,
26
–30,
32

mortgage-backed securities,
265
–74

mortgage industry,
263
–74,
296

     and loans in default,
161

     new accounting rules for,
271
–72

     in Texas,
268
,
269
,
270
,
271

mortuary industry,
178

municipal bonds,
277
–78

Murray, Alec,
200

mutual funds,
48
–81,
275
–78

     
Forbes
Honor Roll and,
68
–69

     Great Correction and,
62
,
275

     interest rates and,
276

     portfolio mix and,
49
–56,
64
–67

     research of,
64

     stock market vs.,
13
,
23
,
48
,
307

     stockpicking and,
64
–69,
80
–81,
133

     stocks and,
13
,
62
,
307

     strategies summarized for,
80
–81

     switching,
307

mutual savings banks,
215
–20

     
see also
S&Ls

mutual thrift IPOs,
216
–20

Nagle, Reid,
200

National Association of Home Builders,
161
,
199

National Association of Investors Corporation (NAIC),
12
,
33
–35

     address of,
35

     Great Correction and,
33

     home study course of,
35

     investors manual and,
34
,
35

     maxims of,
34
–35

     and Rule of Five,
34

National Delinquency Survey,
272

National Pizza,
30

Nature Company,
154

NBD Bancorp,
95
,
98

Neff, John,
37
,
38
,
39

New Germany Fund,
75
–76

Nippon Telephone,
79
–80

Noble, George,
104
,
124
,
128

no-load investments,
58
,
69

nonperforming assets,
202

Norsk Data,
125

Norsk Hydro,
125
–26,
128

Norwest,
95
,
97

note-taking, as research,
103
,
106

nuclear plants,
245
–55

     and conversion to gas,
253
,
254

Nucor,
190
–91,
293

O'Brien, Jack,
130

oil futures,
301

oil industry,
161

open-ended funds,
8
,
74

operating cost per seat mile,
185

Operation Desert Storm,
30
,
43
–44,
273

options vs. stocks,
307

overpriced stocks,
60
,
65
,
142
–49,
157

Overseas Fund,
105

Over-the-Counter Fund,
105

Oyster, Bob,
183
,
298

Paquin, Paul,
268

partially paid shares,
257
–58

past performance,
67
–69,
81

patience and time,
307

Payne, Karen,
227

Pentech International,
28

People's Savings Financial,
204
,
211
–212,
214
,
294
,
321

p/e (price-earnings) ratio,
201
–2,
233
–234,
308
,
309
,
319

Perkins, Marc,
37
,
38

Perold, Jacques,
82

Peter's Principles:

     1 (work/leisure ratio),
7

     2 (stocks vs. bonds),
16

     3 (simple concepts),
27

     4 (rearview mirror),
41

     5 (no-load funds),
58

     6 (good picks),
59

     7 (extravagant home offices),
86

     8 (bond/S&P 500 yield),
110

     9 (common stocks),
117

     10 (never look back),
127

     11 (stocks already owned),
129

     12 (drops in price),
131

     13 (comebacks),
138

     14 (store or product research),
152

     15 (insider buys),
169

     16 (industry domination),
182

     17 (simple annual reports),
190

     18 (S&L research),
200

     19 (comeback of depressed cyclicals),
234

     20 (name changes),
245
–46

     21 (privatization),
257

Peugeot,
128

phantom earnings,
230

Phelps Dodge,
149
,
234
–39,
244
,
302
,
314

Philip Morris,
65
,
133
,
135
,
142
–43

Phoenix Growth Fund,
69

Pier 1 Imports,
163
–65,
166
,
167
,
176
,
291
–92,
302
,
314

Point, Janet,
301

Polaroid,
120

portfolios:

     containing losses in,
137
–39

     designing of,
49
–56

     growth needed in,
50

     mutual funds in,
64
–67

     regular checkups of,
284

     of St. Agnes School,
26
–32

Price, Michael,
37
,
39
,
63
,
70

price-earnings (p/e) ratio,
201
–2,
233
–234,
308
,
309
,
319

price of median house,
161

privatization,
79
,
259
–62

     of Fannie Mae,
264

     of Freddie Mac,
265

Public Service of New Hampshire,
245

Putnam Dividend Growth,
50

quality growth funds,
62
–63,
64

quant, defined,
52

Quotron,
102
,
141

Randall, Carter,
113

Raytheon,
30

real estate market,
160
–63,
199
,
211
,
270
,
272
–73,
311
–12,
318

real estate owned (REO),
202
,
212
,
213
,
270

recessions:

     bargains and,
142

     cyclicals and,
234

recovery, utilities and,
247

refinancing,
269

regulators, utilities and,
248
,
254
–55

Reilly, Tom,
25

REO (real estate owned),
202
,
212
,
213
,
270

research:

     amusement parks and,
225
–26,
300

     by analysts,
104
,
106
–7

     country funds and,
77

     doing one's own,
92
,
104
,
123

     in Europe,
77
,
122
–28

     by fund managers,
104

     haircut as,
177

     by investment clubs,
34

     investor relations department and,
226

     in Japan,
77

     
lunch and,
92
–94,
103

     of mutual funds,
64

     note-taking and,
103
,
106

     on-site,
89
,
223
,
225

     at St. Agnes School,
27
–28,
32

     on S&Ls,
203
,
205
–6

     sharing of,
103
–7

     six-month checkup and,
284

     stockpicking and,
116
,
140
–41,
147
,
305
–6,
307

     travel and,
122
–28

Resolution Trust Corporation,
260
,
261
–62,
302
,
313

restaurants,
108
,
279
–83

     competition of,
281

     potential for,
279
–82,
283

retail sector:

     expansion in,
159
,
180

     inventories in,
164

     investments in,
108
,
138
,
150
–59,
188
–89

     same-store sales in,
159

     shopping malls and,
150
–59,
223
–24

Retirement Growth Fund,
105

return of capital, in MLPs,
222

Reynolds, Dan,
293

risks,
306

Rockne, Knute,
225

Roddick, Anita,
155

Rogers, Jimmy,
38
,
40
,
41

Rogers Communications Inc.,
136

roller coasters,
225
,
226
,
300

Roundtable,
19
,
36
–44,
142
,
147

     Great Correction and,
41
,
43

     procedures of,
37
–39

     worrying by,
39
–47

Rukeyser, Louis,
113
–14,
304

Rule of Five,
34
,
142

Rule of
72
,
108

Russell 2000 index,
65

Saddam Sell-off,
163
,
187
,
223
,
274

St. Agnes School:

     maxims of,
31
–32

     portfolio of,
26
–32

     research techniques at,
27
–28,
32

     student tapes of,
30
–31

Salem Fund,
99

same-store sales,
160

Sandler, Herb and Marion,
197
–98

S&Ls,
see
savings and loan institutions

S&P 500 index,
59
–61,
64
–67

     Magellan Fund vs.,
88
,
89
,
99
,
128
,
148

savings and loan institutions (S&Ls): bad guys in,
195
–96

     bailout of,
194
,
262
,
313

     dividends of,
201

     equity-to-assets (E/A) ratio of,
201

     investment in,
130
–31,
149
,
194
–218,
311
–12,
321

     Jimmy Stewart types of,
194
,
196
–199,
203
,
216
,
296

     mutual thrift IPOs in,
217
–19

     ownership of,
215
–20

     public stock offering of,
215
–20,
321

     rating of,
199
–202

     REO of,
202
,
212
,
213
,
270

     research on,
203
,
205
–6

     six-month checkup of,
294
–97

     Texas mortgages of,
268

     twenty-four-month checkup of,
320
–321

Schafer, Oscar,
37
,
38
,
39

Schneider, Elliot,
107
,
265

Scoon, Davey,
277
–78,
295

Sears, Roebuck & Company,
284
,
286

sector funds,
70
–72

Security Federal,
208

Service Edge, The
,
227

Shapiro, George,
107

Shaw, J. C.,
192

Shaw, Robert,
192
–93