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

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From the CEO Kamie Zaracki Interviews Offer Chance to Explain Time-Tested Principles What’s the Buzz These Days? BetterInvesting by Kamie Zaracki, CEO, BetterInvesting and ICLUBcentral This was a week for interviews, first by The Wall Street Journal and then by Deutsche Bank. In both cases the interviews concerned the trend of individual investors leaving the stock market and how participating in an investment club can help individual investors persevere and thrive during difficult economic times. 6 | BetterInvesting | March 2013 The WSJ article is second in a series of articles on this topic. The first article, “Despite the Gains, Many Flee the Stock Market” (Oct. 23, 2012), details the extent to which average individual investors are leaving the market. The causes are all the issues we as BetterInvesting investors are familiar with: the disso - lution that came after the tech stock crash, financial markets collapse and sundry other highly publicized cor porate scandals. The main focus of this second WSJ article is investment clubs. Although the reporter said the article wasn’t about BetterInvesting, he had many questions about our history, the organization’s problems in the mid-2000s and the declining attendance at both our national and local events.We discussed all these issues, and as is appropriate for nonprofits such as BetterInvesting and to reinforce principles of transparent reporting, our membership num bers and strategic plan are posted on the public website. So the reporter was aware of the magnitude of the membership decline and what our strategy is to help BetterInvesting thrive as we move into the future. The reporter also asked about our position regarding people who don’t follow our principles exactly, such as investing in dividend stocks versus growth stocks. This was a surprise, as the Stock Selection Guide def initely allows for analysis of dividend stocks! He also asked about investing in options and using stop orders. Of course, we know that people can be successful longterm investors without using options or stop orders. But if people are curious about them, they should learn more from reputable industry experts, do their own analysis and decide for themselves. Regarding event participation, since 2009 attendance at the BetterInvesting National Convention has been growing and we’re beginning to see more prospective members attend our sessions that are open to the public as a way to learn more about the organization. We also see robust attendance at our live webinar-based program - ming, sometimes reaching up to 800 attendees depending on the topic. People really like the convenience of attending these interactive investment education sessions from home. BetterInvesting is successfully evolving the venues used to deliver our educational programs to meet the needs of the online society we live in. To be truthful, I felt as if I were explaining the past during the WSJ interview. That wasn’t the case with the Deutsche Bank interview. The Deutsche Bank researchers are preparing a white paper for their corporate investor relations clients that will explain the value individual investors and investment clubs bring to the market. Those indi vidual fundamental investors are a loyal, stable base of informed shareholders who evaluate company stocks for investment based on their current and projected performance. Deutsche Bank was eager for information about BetterInvesting clubs and members and why publicly traded companies should be interested in cultivating individual investors. BetterInvesting has many clubs that have been in operation for 40, 50 and 60 years. Longtime clubs and members have experienced both bull and bear markets and know that wealth is made in bear markets — and realized in bull markets. Investment clubs provide the en vironment that gives individual investors the con - fidence to select quality stocks and manage their portfolio to build wealth over the long term. This is really a testament to the value of clubs. Clubs create an environment conducive to learning about investing and to sharing the work assoc iated with stock analysis, tracking and portfolio management. The proof of investing success is in the BetterInvesting 100 index (aka BIXX), which tracks the performance of the top 100 stocks held by Better Investing clubs. Over the last five years, BIXX has outperformed the Standard & Poor’s 500 index by an impressive 25 percent. The BetterInvesting principles of common-sense investing rock! At the time this BetterInvesting Magazine is going to print, the WSJ article and the Deutsche Bank white paper were not yet published. So I really don’t know how BetterInvesting and investment clubs will be portrayed. Regardless, I love talking about BetterInvesting and the patience and determination of our investment clubs and members when it comes to successful longterm investing. All in all, it was a good week for making others aware of the value of BetterInvesting. Wishing you better investing,
Performance Parameter At 12/31/2012 Performance Perspective 5-Year Change Annualized Vanguard Total Stock Market (MSCI US Broad Market Index) 35.64 2.0 Dow Jones Industrial Average (DJIA) 13,104.14 (0.2) Nasdaq Composite 3,019.51 2.6 S&P 500 (Large-Cap Stocks) 1,426.19 (0.6) S&P MidCap 400 Index 1,020.43 3.5 Russell 2000 (Small-Cap Index) 849.35 2.1 Value Line Arithmetic Composite 3,131.88 7.2 MSCI EAFE (Europe, Australasia, Far East) Index 1,604.01 (6.6) MSCI Emerging Markets Index 1,055.20 (3.3) Consumer Price Index (October) 230.22 1.8 S&P 500 Operating Earnings (2012 Estimate) 98.99 2.8 Sources: Yahoo! Finance, Value Line, Bureau of Labor Statistics, Thomson Financial, Morgan Stanley Capital International Most Active List Here are the companies attracting the interest of the BetterInvesting community, according to about 5,400 transactions by users of myICLUB.com club accounting for the trailing eight weeks ended Jan. 8. Company (Ticker) Buys-Sells 1. Apple (AAPL) 179-109 2. Caterpillar (CAT) 43-32 3. Intel (INTC) 29-44 4. McDonald’s (MCD) 33-30 5. Stryker (SYK) 8-57 6. Microsoft (MSFT) 27-34 7. Ford (F) 18-37 8. Coach (COH) 44-8 9. General Electric (GE) 11-41 10. Teva Pharma. (TEVA) 6-46 11. Aflac (AFL) 25-22 12. Exxon Mobil (XOM) 16-26 This list is presented as a source of stock study ideas. No investment recommendation is intended. Our thanks to ICLUBcentral for this information. We maintain a Most Active List at the website’s homepage. Please submit investment transactions online at: www.betterinvesting.org/members/ investing/stocks/mostactive/default.html by e-mail to bi@betterinvesting.org or by letter to: BetterInvesting Magazine Box 220, Royal Oak, MI 48068 Most Active List: Bubbling Under Most Active, Nos. 13-40 Transactions for the trailing eight weeks ended Jan. 8. Company Ticker Buys Sells Total Bio-Reference Labs BRLI 36 5 41 Qualcomm QCOM 30 8 38 Costco COST 23 8 31 Disney DIS 22 8 30 Home Depot HD 22 8 30 Starbucks SBUX 20 10 30 Cognizant Tech. Sol. CTSH 19 7 26 3D Systems DDD 16 3 19 American Tower AMT 14 5 19 ResMed RMD 13 4 17 Schlumberger SLB 12 5 17 Bed Bath & Beyond BBBY 11 5 16 Celgene CELG 11 4 15 FedEx FDX 11 4 15 Chevron CVX 10 5 15 IBM IBM 10 5 15 National-Oilwell Varco NOV 11 3 14 Philip Morris PM 11 3 14 FactSet Research FDS 9 3 12 Clean Energy Fuels CLNE 9 2 11 Echo Global Logistics ECHO 9 1 10 Cirrus Logic CRUS 7 3 10 EMC EMC 7 3 10 SPDR Gold Trust GLD 7 2 9 Zagg ZAGG 7 2 9 3M MMM 6 3 9 Kinder Morgan KMP 6 3 9 IPC the Hospitalist IPCM 8 0 8 Source: myICLUB.com Home Depot makes a return to BetterInvesting clubs’ portfolios, as seen in this month’s Bubbling Under list, with 22 buys against eight sells for the past eight weeks. With Lowe’s being featured as the Stock to Study for January, could home-improvement retailers be attractive opportunities once again for growth-oriented investors? The key question is when to invest in growth companies that have seen trends reverse. The answer, based on comments from members of the magazine’s Securities Review Committee, is to wait until these companies prove that they’ve resumed a growth path. In other words, look for proof of a turnaround before betting on one. Though you might miss out on some of the gains as others jump in earlier, many stocks in this situation have been beaten down so much that there’s still plenty of upside remaining. Stocks in the tables are mentioned only for educational purposes. No investment recommendations are intended. March 2013 | BetterInvesting | 7
Page 1 and 2: STOCK TO STUDY: T. Rowe Price Group
Page 4 and 5: CONTENTS | BetterInvesting | March
Page 6 and 7: Editorial For Long-Term Investors,
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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