Re: Asset Allocation , part 2

From: "Steve Foulks" <steve_foulks@up.bresnan.net>
Subject: Re: Asset Allocation , part 2
Date: Wed, 19 Aug 1998 11:17:47 -0400

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From: jeff@scrooge.csd.sdl.usu.edu (Jeff Salisbury)

Jeff Salisbury wrote:
>Steve,
>I too, am a buy and hold advocate. However, being a CFP, what do you do
for,
>or recommend for your clients? Mutual funds? Or, a portfolio of stocks? How
>do you choose a mutual fund or stock since you indicate that you don't do
much
>research?
For beginners with little money I urge them to buy cheap index funds (like
the Vanguard S & P 500 fund, CREF Equity index fund) and hold them and also
to acquire stock in top quality companies and to hold them forever, using
dividend reinvestment plan and additional stock purchase plans.  In picking
a stock I use the following philosophy:  Does the company make a good
product and will people still want it 50 years from now? On that basis I
pick companies like Coca cola, WalMart, Exxon, etc.

As wealth increases, I urge people to drop mutual funds and create their own
diversified portfolio of stock and bonds, thus cutting out the middle man
(mutual funds) altogether.

Steven M. Foulks, CPA, CFP, PhD
<http://www-instruct.nmu.edu/business/sfoulks/>

Northern Michigan University <http://www.nmu.edu/home.shtml>





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