The Journal’s securities portfolio

Title

Language

English

Year

1936

Rights

In Copyright - Educational Use Permitted

Fulltext

February, 1936 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 The Journals Securities Portfolio When brokers became active in Manila in 1933 and trading on the New York exchange got to be quite extensive, the Journal opened a series of securities reviews written entirely independently, for the investor rather than the man willing to buy on margin. They were discontinued, the chairman of the publicity committee at that time believed that good counsel could not be given. The portfolio selected is now reprinted, and prices as of August 29, 1933, compared with those of February 1, this year. The portfolio imagined to have been bought in August 1933 shows a net gain of 73-5 8. Nine stocks lost 57 points, 7 stocks gained 130-5 8 points, and 1 bank stock, National City, stood unchanged. Be sides the accretion to capital value, the holder of such a portfolio would have had the dividends paid; thus while the rails are down with but one exception, A. T. & S. F., they have paid many dividends. On the whole the rails have soured. The portfolio was selected as the imaginary basis of a permanent investment; not however with the thought that it would not be revised from time to time; and had it been prudently revised, as events dictated, it could have been made much stronger from the market-worth and dividend earning viewpoints. It could have been foreseen 6 months ago, at least, that the rails were not winning their uphill fight. That division of the portfolio could have been li quidated, and something added Common Stocks Portfolio Selected August 1933 Total points gained.................................... Total points lost......................................... Total net gain, points............................... Railroads — Then A. T. and S. F.. . . 69 Canadian Pacific . 16-3 -1 Pennsylvania......... 38-1/2 Union Pacific........ 130 Baltimore and Ohio 35 Banks— ('base..................... 28 Umpire Trust........ 20 Irving Trust.......... 19-1/8 National City....... 36-7/8 SteelBethlehem.............. 41-5 8 U. S. Steel............ 57-1/4 Food Products— California Packing. 33 Corn Products. . . . 89-1 2 General Foods. . . . 37-3 8 Automobiles—........... Chrysler................. 46-3 '4 General Motors. . . 35-1/8 Miscellaneous— Wrigley Gum........ 53 Then was August 29, 1933; Now was February 1 except Wrigley, California Packing, Empire Trust, and Irving Trust, as of .January 2. 130-5/8 Now 74-1/2 12-5 '8 35-3/4 120-1 2 18 Up 5-1. 2 Down 4-1,8 2-3/4 9-1 2 17 41-1 4 13-1/4 33 13 17-1/2 1-1/2 36-7/8 36-7 8 4-3/4 50-3. 8 6-7/8 34 1 70-1/4 9-1/4 34-1/8 3-1/4 93-1 8 46-3 8 59-5.8 24-1/2 80 27 5‘) 71-5 8 1936 in the others. Bank of America could have been added; among banks various opportunities turned up, in fact, while more food companies would have been entirely safe, also some of the truck makers now rolling in profits. These truck makers have a future ahead of them. Some of the specialty steels have been stepping out attrac tively, but steel commons have, it is believed, unseen hurdles ahead of them; the portfolio could be improved by trading steels for less hazardous stocks—among which choice is now far wider than it was when the portfolio was chosen, 6 months after Roosevelt took office. If any reader has an actual port folio of American common shares, if he will reveal its make up other readers would surely be interested. In shares carried on margin the Journal has no interest; it has no interest in any form of gambling. A genuine investment port folio carried in the Philippines and revised from time to time would be of the greatest in terest. There is this fundamen tal, now well established, that was absent from the situa tion in 1933; namely, interest rates in the United States are definitely and permanently lower. Industry is thus accom modated with cheaper credit. It may not be said with the same assurance that brokers’ loans can be controlled and periods of wild speculation will not return in the stock market; but at any rate the field for the investor is much clearer now than it was 3 years ago. FOR PROTECTION AGAINST COMMERCIAL AND PERSONAL LOSSES we provide COMPLETE INSURANCE at competitive rates and liberal conditions FIRE — EARTHQUAKE — MARINE — AUTOMOBILE PERSONAL ACCIDENT — EMPLOYERS LIABILITY BAGGAGE — PLATE GLASS — ETC., ETC. CALEDONIAN INSURANCE COMPANY LEGAL & GENERAL ASSURANCE SOCIETY LTD. NORWICH UNION FIRE INSURANCE SOCIETY LTD. Over a Century of world wide experience with reputations and financial security second to none. Guttridge & Chambers Inc. GENERAL AGENTS \ TEL. 4-90-64 — OFFICE: 129 JUAN LUNA FO R QUALITY and DURABILITY WEAR HOSIERY SOLD fVfRYWHlRUgg IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER ,OF COMMERCE JOURNAL

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