Cedar Rapids Gazette, March 22, 1974, Page 9

Publication: Cedar Rapids Gazette March 22, 1974

Cedar Rapids Gazette (Newspaper) - March 22, 1974, Cedar Rapids, Iowa Carpet Warehouse Sale (located at I st Street and 5th Avenue S E. next to Central Fire Station) 6 Hours Only Saturday 10:00 AM TO 4:00 PM • Part Rolls—Full Rolls-—Remnants at a Savings of 50% • Room Size—Over Size—Minisize—Remnants selling from 38.00 to 108.00. ALL SALES FINAL! I -V The Investor s Guide By Sum Shulsky Q — I’m a 20-year*old student who accumulated $1,500 through summer jobs. I began trading stocks in 1969. By 1973 I was down to about $800. I’ve now put this money into an A-rated utility stock: yielding 6.7 percent, and hope that an annual market appreciation of 3 percent wil give me a better than 9 percent total improvement every year. Would you say that a dividend reinvestment plan is a good, safe alternative to more aggres sive growth stock investing? A — On average, it certainly has been over the last few years, although I hesitate to endorse it as the best policy for young investors for generations to come. Utility stocks — almost by definition — are not the most aggressive of growth stocks, as recent history bears out only too well. And even taking the longer view, you can see that a regu lated industry can’t very well double its earnings overnight. All we know for certain is that utility dividend yields recently have been just about the highest on record. Since you are most likely not subject to heavy income taxes we can assume that pretty much all that 6.7 percent dividend is available for re-investment — which is not a bad deal. For a person in a high income tax bracket, this route might not be too rewarding. Let’s just say that you are erring on the side of caution — which, for a 20-year-old, is rather refreshing. By all means continue with this dividend re-in vestment, pro gram. It is an excellent way to accumulate any stock on a dollar averaging basis — another cautious approach. However, don’t make this program the be-all and end-all of your investment career. It’s okay to keep building this utility holding via dividend re-investment, but you still have to come to grips with a more aggressive approach in securities far more speculative than the one you now own. Every young man who intends to invest in equities must take some chances in the stock market — even though they may cost him money — if only for their character-building value. Your experiences have evidently pushed you too far right, into the conservative ranks. Come back toward the center a bit. Finally, let’s put that 9 percent annual improvement figure in its proper perspective. It’s true that 9 percent is about the average rate at which common share investors improved their portfolio over a 50-60 years )eriod (adding annual dividends t o annual average capital gains). However, a young man juilding his fortune is not in the same position as a power boat contender in a measured course contest. You are not trying to achieve any fixed, average rate of progress. In a sense, you’re going for broke — at least while you’re still young enough to take losses in stride. By Oswald & James Jacoby In spite of all the violent crime we read about today, the holdup at the bridge table is not only perfectly legal, but it has the approval of all successful players. vSouth analyzes the opening lead and notes that West has led the danger suit. Any other opening would have given South time NORTH    2: 4 Q 7 ♦ 842 ♦ Q1072 ♦ A K IO 4 WEST    EAST 4 A94    4    106532 ♦ Q J IO 9 7    *65 ♦ 853    ♦    A 9 ♦ 76    +    Q832 SOUTH (D) 4 K J 8 ♦ AK3 ♦ K J64 ♦ J 95 Neither vulnerable West North    East South INT. Pass 3N.T.    Pass Pass Pass Opening lead—VQ TORO Time enough to think of 9 percent a year when you are 30-40 years older. * * * Q — I’m 36, with about $200 a month    to    invest,    but    feel    I haven’t the time to study    securi ties. Should I go into a mutual? A — You’ve answered your own question. If you don’t have time to cultivate your garden, hire a gardener. * * * Q — Is it true that when an exchange-listed corporation splits its stock, the price drops automatically? A — Any stock (listed, or over the counter) will automatically drop sufficiently to compensate for a stock split. If a $50 stock is split 2 for I, the stock will trade around $25 after the split. If a $90 stock is split 3 for I, the stock will trade for $30 after the split becomes effective. ♦ * * Q — I’ve just sold some real estate. At 53, am I too old to invest in common stocks? And if I should, in what stocks? A — Anyone still at work, "i’m nn—BBEgaBi with years to go to retirement and interested in building capital .should consider common share investment. Naturally, at 53 you shouldn’t take the wild chances you would have taken at age 35. So — stick to established, quality situations, unless you have information you trust IOO percent on more speculative ventures. I’m sending you a list of established growth stocks. * * * Q — I own shares of Bristol-Myers for which I paid $48 a share. Should I sell and take a loss? It doesn’t pay much. I’m a widow Jiving on social security. A — There Isn’t much loss, but that doesn’t have much to do with the case. The stock, top quality (A plus), yields less than 3 percent. It is a model growth stock, but I can’t see that it fits into the portfolio of an elderly woman who needs-maximum income. * * * Mr. Shvlsky welcomes written questions, but he will be able lo provide answers only Ihroueh the column. For Infor motion on retirement and preretirement planning, please Include a self addressed, stamped envelope. Address your requests to Sam Shulsky, care of The Gazette. IO YEARS AGO — Russia stressed that it would never help pay for the U. N. Congo and Middle East forces and hinted than any challenge to its General Assembly vote on that account might break up the U. N. Garden Shop Opens Saturday, March 23rd! LAWN-BOY MOWERS #7023 Quick and quiet Lawn-Boy engine. Fingertip starting. Lightweight Magnalite deck for easy handling. Quiet under-the-deck muffler. Snapon grass bag. Patented safety features. Year warranty. 21” size. 114.95 # 8229 Same famous patented safety features as mentioned above. Self-propelled 21” mower. 149.95 to knock out both enemy aces and make sure of scoring at least nine tricks. As it is the defense can set up heart winners against him. South can knock out the diamond ace and come to nine tricks with a successful club finesse, but he sees a much better play. He can make his contract if hearts break 4-3 in which case he will lose just two hearts and two aces or he can make it against any heart division unless both aces are in the hand with the long hearts. Therefore, South should let West hold that first trick. West can do no better than continue the suit. South wins and then goes after diamonds. East takes his ace and can’t find a heart to lead back and South has time to knock out the ace of spades. Eventually South tries tile club finesse in an effort to score an overtrick. *4CflRD<fc/&*4* St WHIRLWIND” MOWERS This specially priced "Whirlwind” mower has 3.5 horsepower. Available only while inventories last! It has all the engineering and safety features that make this a special Toro! # 16273 21” size. RID TAG SPEICAL Regularly 159 95 139.95 I 6073 is the 19 Toro' Whirlwind'' that s hand push style. Has fingertip starting, 109.95 # 16173 is the Toro “Whirlwind” that's 21 in size. Hand push mower wjth fingertip starting.    I    29.95 'Safety Shield’ helps protect toes Wind-Tunnel* housing vacuums lawns The Cedar Rapids Gazette: Tri., Mar. 22, 1974 Model 1627J The bidding has been: West North East .South U Pass 26 Pass 2f Pass 34 Pass 3? Pass SNT. Pass ? You, South, hold: 108654 ? A K Q 8 3 4A J 5 4-What do you do now? Take sour choice between pass ut four diamonds. Either actu may turn out to be the win- T. TODAY’S QUESTION You elect to hid lour diamonds d your partner bids four hearts, hat do you do now? Ammer Sunday Wnq&t* For the Finest* in Points RAKE-O-MATIC Converts your rotary lawnmower in minutes to a power rake and thatcher. Removes dead grasses, lets lawn breathe. Mulches leaves . . . saves back breaking labor. Eliminates costly power rake rentals. 1.99 Scotts Special thru April 16th SCOTTS TURF BUILDER , , the favorite fertilizer for developing thick, green lawns. It feeds lawn slowly. •Covers 15,000 square feet. Was 15.95 ......................................Now less 2.00 •Covers 10,000 square feet. Was 10.95 ..................................... Now less 1.00 SCOTTS NEW SUPER TURF BUILDER ... better than' ever for quick greening. This fertilizer is long lasting. • Covers 5,000 square feet per box . . Regularly 6.95. • I Box, 75c Off • 2 Boxes, 1.50 Off *3 boxes 2.50 Off SCOTTS HALTS PLUS EARLY BIRD SPECIAL Receive a 2.50 refund on this crabgrass preventative! Now thru May 15 mail in the product name to Scotts. • 5,000 square foot coverage .................16.95 SUNBEAM CORDLESS GRASS SHEARS Heavy duty but lightweight cordless shear gets the job done with little effortl No-stick coated blades. Safety lock feature. Hangs on wall. Complete with recharging unit. Model #GT33 14.88 • ZGT3 Handle and Wheels ................. 6.99 Downstairs Store and Lindale Plata Z SSOHMMMBRS ;

  • Sam Shulsky

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

Issue Date: March 22, 1974

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