STOCK TO STUDY: T. Rowe Price Group, Inc ... - BetterInvesting

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Editorial For Long-Term Investors, the Best Could Be Yet to Come Bonded to Stocks Vol. Not all the machinations of Wall Street are a mystery. As Ken Janke, Mr. NAIC, would remind us, stocks respond to the most basic laws of economics and move up and down relative to supply and demand. Arecent article in The Wall Street Journal makes this point. One week in early 2013 U.S. investors moved $18 billion into stock mutual funds and exchange-traded funds, the paper reported. That was the largest weekly total since June 2008. One doesn’t need to look very long before finding a likely reason. With interest rates so low, they’ll eventually have to go back up and hinder bond returns. Investors might be seeing the higher rates coming sooner rather than later, and since their money needs to go somewhere, they’re moving back into stocks and stock funds. Michael Hartnett, chief investment strategist at Bank of America, tells the WSJ the key developments to furthering the “great rotation” will be lower unemployment, falling returns for fixed-income investments and an increasing belief that the Federal Reserve will end its bond-buying program. There have been false starts to the rotation in previous years, and if there’s a pickup in inflation all bets are off. But if we see gains from the rotation from bonds to stocks, remember that this would be occurring off market gains over the past year. Indeed, in mid-January the Standard & Poor’s 500 index reached a five-year high. Once again, predictions for the death of stocks have been exaggerated, and if you had been following the principle of dollar-cost aver aging, you likely would have done very well during this period. We’re not in the practice of making market prognostications, but we’re always amazed that on Wall Street, what goes around always seems to come around. Patience with the market is often rewarded. Nominations Sought for Nicholson Award BetterInvesting’s board of directors is calling for nominations to honor indivi - duals who have furthered the association’s mission with the George A. Nicholson Jr. Distinguished Service Award in Investment Education. The new award, named after a co-founder of BetterInvesting and creator of its principles and Stock Selection Guide, recognizes those both inside and outside the BetterInvesting community who have introduced individuals to the ownership of business through stocks, and provided investment information and education that enables individuals to be successful lifetime in ves tors. Anybody who helps promote investment edu cation or creates educational programs, tools and resources that help individual investors apply commonsense investing practices is eligible for the Nicholson Award. The board of directors may present the award annually and to more than one person. To nominate someone for the Nicholson Award, email the name to: nicholsonaward@betterinvesting.org. Nominations need to include the nominee’s name and contact information as well as a letter of support explaining this person’s out standing contributions in promoting investment education or advancing the organization’s mission of empowering individual investors. The board of directors will present the inaugural Nicholson Award at the 2013 BetterInvesting National Convention next September in Pittsburgh. Nominations are due by March 1. 62, No. 6 Official Publication of the National Association of Investors Corporation US ISSN 0006-016X Toll Free: 1-877/275-6242 (1-877/ASK-NAIC) 248/583-NAIC (6242) Fax 248/583-4880 BetterInvesting website: www.betterinvesting.org Editorial e-mail: bi@betterinvesting.org NAIC/BETTERINVESTING BOARD OF DIRECTORS Gary Ball, Robert Brooker, John Gannon, Roger H. Ganser, Elizabeth N. Hamm, Bryce Klempner, Eve Lewis, Kenneth Michel, Shanna Rendon, Shawn Roberts, Stephen Sanborn, Stuart Schechter, Julie M. Werner, Robert L. Wynn II. NAIC OFFICERS Roger H. Ganser, Chair; Kamie Zaracki, CEO and President; Stephen Sanborn, Treasurer. BETTERINVESTING VOLUNTEER ADVISORY BOARD Directors: Gretchen Hurt, Chair; Allen Holdsworth, President; Joe Parks, Treasurer; Susan Maciolek, Secretary; Diane Amendt; Suzi Artzberger; Kim Butcher; Jim Crabill; Pat Donnelly; Len Douglass; Linda Glein; Ken Kavula; William Peterson; Shanna Rendon; Susan Tampasis; Carol Theine; Mike Torbenson; John Tufts. Associate Director: Christi Powell BETTERINVESTING MAGAZINE Editor: Adam Ritt Managing Editor: Jan Jeffres Graphic Designer: Jack Downs Online Editor: Mary Treppa Editorial Staff: Cindy Kelley, Brenda Gayle Editorial Advisory & Securities Review Committee: Robert M. Bilkie, Jr., CFA; Daniel J. Boyle, CFA; Donald E. Danko, CFA; Philip Dano, CFA; Maury Elvekrog, CFA; Walter J. Kirchberger, CFA; Paul McVey, CFA; Marisa Lenhard, CFA. BetterInvesting Magazine is published 10 times per year (January/February and June/July issues are combined) by NAIC’s BetterInvesting, 711 W. 13 Mile Road, Suite 900, Madison Heights, MI 48071. Subscriptions: Individual subscriptions are $31 a year or less; go to the store at the BetterInvesting website: www.betterinvesting.org/Public/Store/Store/ BetterInvesting+Magazine/default.htm Stocks and mutual funds mentioned in BetterInvesting Magazine articles are used as illustrations or suggestions for study and are presented for educational purposes only. They are not to be considered as endorsed or recommended for purchase by NAIC’s BetterInvesting. Advertisements in the magazine also do not constitute or imply endorsement of these companies or their products and services by the association. Investors should conduct their own review and analysis of any company of interest using the Stock Selection Guide before making an investment decision. Copyright © 2013 National Association of Investors Corporation. All rights reserved. Postmaster: Send change of address notices to National Association of Investors Corporation, 711 W. 13 Mile Road, Suite 900, Madison Heights, MI 48071. Canada Subscriptions: Canada Post Agreement Number 1736450. Send change of address info. and blocks of unde livered copies to P.O. Box 1051, Fort Erie, ON L2A 6C7. PRINTED IN USA 4 | BetterInvesting | March 2013
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Page 1 and 2: STOCK TO STUDY: T. Rowe Price Group
Page 4 and 5: CONTENTS | BetterInvesting | March
Page 8 and 9: From the CEO Kamie Zaracki Intervie
Page 10 and 11: PERSONAL FINANCE | Web Watch | Due
Page 12 and 13: PERSONAL FINANCE | Due Diligence |
Page 14 and 15: PERSONAL FINANCE | Financial Planne
Page 16 and 17: INVESTMENT CLUBS | Repair Shop ‘E
Page 18 and 19: INVESTMENT CLUBS | Repair Shop cent
Page 20 and 21: INVESTMENT CLUBS | The Clubhouse De
Page 22 and 23: INVESTMENT CLUBS | The Clubhouse Th
Page 24 and 25: STOCK TO STUDY | Featured Company I
Page 26 and 27: STOCK TO STUDY | Featured Company
Page 28 and 29: STOCK TO STUDY | The Stock Selectio
Page 30 and 31: STOCK TO STUDY | Featured Company 2
Page 32 and 33: UNDERVALUED | Featured Company Amer
Page 34 and 35: STOCKS | Growth Stocks Colgate Is S
Page 36 and 37: Empowering Investors Since 1951 tim
Page 38 and 39: DISCUSSION & ANALYSIS | Between the
Page 40 and 41: DISCUSSION & ANALYSIS | Random Walk
Page 42 and 43: FEATURE | Cover Story by Danielle L
Page 44 and 45: FEATURE | Cover Story Titles such a
Page 46 and 47: MUTUAL FUNDS | Mutual Fund Matters
Page 48 and 49: MEMBERSHIP | First Cut Fundamentals
Page 50 and 51: MEMBERSHIP | Chapter Contacts In th
Page 52 and 53: MEMBERSHIP | Chapter Contacts NEVAD
Page 54: MEMBERSHIP | Performance Review Big

STOCK TO STUDY: T. Rowe Price Group, Inc ... - BetterInvesting

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