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RETIREMENT 101

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Criteria
Stocks

Stocks

The following are stocks that should fit well into almost anyone's long term portfolio. This list will change with time, but not rapidly.

Last update, as of December 31, 1999

Feb 29, 2000
I currently do not recommend new investments in Coca-Cola nor PepsiCo.
I also have reservations about Walgreen.

Industry Group Stock 1 yr %
return
3 yr %
return
5 yr %
return
10 yr %
return

Technology:
Software Microsoft (MSFT) 68 78 73 58
Semiconductors Intel (INTC) 39 36 60 44
Computers Compaq (CPQ) -35 22 28 26
  Dell (DELL) 39 148 140 97
Communications
telephone
Lucent (LU) 37 87 na na
Communications
Internet
Cisco (CSCO) 131 96 94 na

Consumer non-cylic:
Beverages Coca-Cola (KO) -12 4 19 21
  PepsiCo (PEP) -13 11 18 15
Pharmaceuticals Merck (MRK) -8 21 31 21
  Pfizer (PFE) -22 34 40 30
  Eli Lilly (LLY) -24 24 35 18
Medical Supplies Abbott Labs (ABT) -25 15 20 18
  Johnson & Johnson (JNJ) 13 25 30 22
Non-durables Procter & Gamble (PG) 22 29 31 23

Financial:

Financial-diversified Citigroup (C) 73 42 53 35
Banks-money center Chase Manhattan (CMB) 12 23 37 23
Broker Charles Schwab (SCH) 36 76 72 57

Conglomerate, Industrial, and Energy:

Conglomerate General Electric (GE) 56 48 46 28
Energy Exxon Mobil (XOM) 13 21 25 17

Consumer, cyclic:

Retail-broadline Wal-mart (WMT) 70 84 46 29
Retail-speciality Gap (GAP) 23 74 60 39
Retail-other Home Depot (HD) 69 84 47 44
Retail-drugs Walgreen (WAG) 0 44 41 28

Utility:

Telephone-long dist. MCI WorldCom (WCOM) 22 29 31 23
  AT&T (T) 2 26 20 12
Telephone-regional Bell Atlantic (BEL) 17 28 25 13
  Bell South (BLS) -5 35 32 17
  GTE Corp (GTE) 12 20 23 12

The above stocks should offer an above average return on your investment over the long term. Pick and chose,but remember to diversify. Start with at least five stocks, each in a different industrial group. Increase your number of stocks over time, finally ending up with about 20. That is enough to give you the protection that diversity offers, but not too many to keep track up. Best of luck!!! This is the bottom.
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