The Select Investor Buy & Hold Update October 12, 2000
---------------------------------------------------------------
The good news is that Wednesday was probably the technology
capitulation that we have been looking for, signaling an end
to the market free fall of the last month. There may be some
volatility in the next few days, as the bottom is formed, but
the free fall has almost certainly come to an end.
On to the purpose of this e-mail. We would like to introduce
you to our new Buy & Hold Portfolio.
The Buy & Hold portfolio is for those investors that would
like to put the power of sector investing to work in their
portfolios, but do not want to be watching the markets closely
and trading frequently.
The Buy & Hold portfolio buys just once a year in October and
these Select funds are held for three years. This leads to a portfolio
with three groups of three funds, with each group held for three years.
We opened the portfolio in January with three technology funds and,
while there has been great volatility, the portfolio has done very
well. As of Friday, the NASDAQ was down about - 15% while this portfolio
was up 11% year-to-date. We expect these three funds and the next group
to do very well in the coming years.
We will announce this year's three buys on Tuesday of next week, but
the short list includes Natural Gas and the new Networking & Infrastructure
fund. The third fund will provide greater diversification away from
technologies and will probably come from the health care or financial sectors.
We believe that this novel portfolio will continue to perform very well in
the years to come and will provide an opportunity for sector investing
for many investors that would otherwise find sector investing too challenging.
To open your new Buy & Hold portfolio, you can buy the three newly
recommended funds, buy all six of the current recommendations, or simply
choose three of the six funds that you like best.
Sincerely,
Russell Cox
selectinvestor.com
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Buy & Hold Portfolio
Trade : Wednesday, October 18, 2000 10:00 am
Portfolio 1999 Symbol Number Bought Price
Biotechnology FBIOX ( 042 ) 1/3/00 $ 65.74 *
Electronics FSELX ( 008 ) 1/3/00 $ 84.28 *
Technology FSPTX ( 064 ) 1/3/00 $ 149.01 *
( * ) Price Adjusted Hold these funds until April 2002
Portfolio 2000 Will buy three Select funds in October 2000
Portfolio 2001 Will buy three Select funds in October 2001
-----------------------------------------------------------------------
Buy & Hold Portfolio
This novel portfolio - structured like a three
year bond or CD ladder - allows you to put
the power of sector investing to work for
you, but only requires you to make one
buying decision each year.
In a three year CD ladder, you put 1/3 of
your desired total into a three year CD each
year, then after three years you will own
three, three year CDs and each year
thereafter one CD will come due, providing
you the opportunity to shop for the best
interest rate and add or remove money
from the CD ladder.
In our Buy & Hold portfolio, we will
recommend three Select funds each year
that are expected to be the strongest
sectors during the next three years. You will
then put 1/3 of your target total amount for
the portfolio into these three funds and hold
these positions for three years.
In this way, after three years you will have
three positions of three Select funds each.
After you have held a position for three
years you will sell the three Select funds in
that position and buy three new Select
funds that are expected to lead the way
during the next three years.
In this way you will build a diversified
portfolio of the most highly recommended
Select funds. |
