Cedar Rapids Gazette, July 16, 1974, Page 24

Cedar Rapids Gazette

July 16, 1974

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Issue date: Tuesday, July 16, 1974

Pages available: 48

Previous edition: Monday, July 15, 1974

Next edition: Wednesday, July 17, 1974

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Publication name: Cedar Rapids Gazette

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Cedar Rapids Gazette (Newspaper) - July 16, 1974, Cedar Rapids, Iowa 12 The Cedar Rapids Gazette: Tues.. July Iii. 1971Trends Should Be Watched To Pick Growth Stocks Editor s Note: The following is adapted from the book, "How To Make Money in Wall Street" by Louis Rukeyser Rukeyser, formerly a foreign correspondent for the Baltimore Sun and economics editor for ABC-TV News, currently hosts “Wall Street Week", a popular program on public television. The book is published by Doubleday and Co. By Louis Rukeyser Newspaper Enterprise Assn You can get a lively argument going on Wall Street over the question of whether it is now easier or harder than it used to be for the average investor to pick the right stocks. On the one hand, the average man has many advantages that were not available to him in times past. The flow of investment information has never been greater. New laws and regulations protect him against some of the more blatant forms of manipulation that pocked the market's past. On th(> other hand, the search for truly exceptional results may have become more difficult. Perhaps most important. (Third of a series) there is simply much more competition at every level of investing. as the stock market has changed from the private battleground of a comparative few to an authentic marketplace of ♦he millions. Faith in Future often comes simply from keeping your eyes open iii everyday life. Brilliant investing stories have been written by ordinary people who just liked the early Polaroid cameras and decided that a lot of other people might like them too Practically any kind of business or profession offers opportunities for insights into potentially growing fields. The best way to begin is by taking your mind as far as possible from the daily hysteria at Broad Street aud Wall Think big about this country, when* it is going in the world and at home, what changes are affecting its people and the kind of lives they want to live What will life be like iii America five or ll) years from now, what trails will the pursuit of happiness have taken? In the IMHBs. for instance, overwhelming profits were taken in the areas of electronics and military technology. Will the '70s truly become a more peaceful period, in which America c an beal at least some of its swords into plowshares? lf that is your conclusion, it may make you think twice about investing in swordmakers. Similarly, can anyone believe that in the coming decade* any administration is really going to crac k down permanently on the soaring wage rates of the American workman? Not only does this suggest a pressure toward continued price inflation, it also requires that while the growth-minded investor will favor companies whose enlightened labor policies promote internal harmony and stability, he will try to find them in areas where labor is a relatively small portion of the company's total costs. Questionable Category Companies whose labor costs cannot easily be offset or passed on in the form of higher prices often overlap into another questionable category for the years ahead. Mature industries with a high degree of government regulation. Particularly in an era of aroused consumerism, companies in these industries are unlikely to be permitted to grow exceptionally fast. The searc h for growth is also unlikely to take you into Industrie's that are especially vulnerable to foreign competition A similarly jaundiced eye ought to be* cast on any industries whose profits rely heavily on their own activities abroad, especially when these take place iii areas of probably political volatility. But enough of this surly negativism. What are the trends that are more likely to lead us to more positive* investment conclusions? The records can tell us which fields are already growing faster than the* overall economy, but what further projection can you make based on your vision of what America will become over the next decade? Young Adults What is the significance of the fact that the* 25-to-35 years age group will be increasing four times faster than the general population? Will the purchasing power of these young adults go less for the glamor automobiles of the past and more for the intangible satisfactions such as travel? Which industries are poised to benefit from the heightened concern about pollution and ecology? What is the significance of the rising sales of do-it-yourself equipment such as power tools and one-coat latex paint? Will changing lifestyles put more emphasis on such labor-saving devices? Is the liberated woman going to have a smaller c lothing bill? Will she buy as many cosmetics? What kind of recreation will these growing numbers of young Americans be seeking? Don’t be paralyzed by the notion that such broad-gauge assessments can be made only by trained professionals, or that the competition is too intense for an amateur like yourself There is room in the market for all sorts of images of America's future, and there is no guarantee that those that come with the most imposing imprint will necessarily be more accurate than your own. (Next: Analyzing Financial Reports) 'N A generation ago, all you really needed was faith in the future of American industry. You could invest in the major corporations — the so-called blue chips — and. more often than not your results would be excellent. By the 1960s. however, such “buy-the-blue-chips-and-forget-’em” techniques no longer supplied the magic answer for the average investor In I MBB, no chip could have been bluer than US Steel. But the investor who bought its stock that year at the high of $103.50 would have found his stock selling for less than a quarter of that amount by 1971. Contrast that with the performance of investors who were shrewd (or fortunate) enough in 19Hti to invest $1 .(HH) each in Avon Products, International Business Mac hines and Xerox, three stoc ks whose greatness lay not in their past eminence lint in their future potential. What did these stocks have in common? One characteristic was their consistency of earnings increases. Another is that they were leaders iii fast-growing industries. Their sales and earnings grew not only consistently, but faster than the economy at large. This suggests that the* alert individual investor may not be at as great a disadvantage as is sometimes assumed iii locating these supergrowth situations. Some aspects, such as the company’s financial position, may not be immediately apparent. (Solid growth companies tend to be aggressive in sales, but conservative in finance, without excessive long-term debt.) Keeping Eyes Open The initial interest in a potentially great stock, however. Statue of Black Leader Unveiled In Washington WASHINGTON (CPI) -Some 20,000 persons attended the unveiling of a bronze statue commemorating Mary McLeod Bethune, a pioneer black educator and human rights advocate. The 17-foot high statue was erected in Lincoln park, several hundred yards from a statue of Abraham Lincoln emancipating a slave. The unveiling on the 99th anniversary of her birth capped a 13-year fund-raising drive by the National Council of Negro Women to raise nearly $500,000 for the project. Born the first free daughter of former slaves. Mrs Bethune founded Bethune-Cookman college in Daytona Beach, Fla., in 1899, later serving as an adviser on racial relations to President Franklin D. Roosevelt. The unveiling ceremonies were attended by Mayor Walter Washington, actress Cicely Tyson, Mrs. Coretta Scott King, and Interior Secretary Morton. The statue was designed by sculptor Robert Berks, w ho has done busts of Lincoln. Martin Luther King and John and Robert Kennedy. They'll Do It Every Time Now You Know Bv United Press Internotionol The South American shrub that produces cashew nuts is closely related to poison ivy, and just as irritating. ON THIS DATE in 1882. David Farragut became the first admiral in the U.S. navy. More stories . . . and more of a story. That s what The Gazette offers you every day. Sports to finance; politics to Hollywood gossip; police news to Home Ec features — our job is to keep you informed and entertained. Where else can you turn for all these stories and features? Only here. The place you always turn . . . when you want to know the whole story . . . about Eastern Iowa and the world. CEDAR RAPIDS ANSWERS TO QUIZ: WORlDSCOPE I returned to power, 2 c, 3 Salyut 3, 4 Henry Jackson; 5 Northern Ireland NEWSNAME Kakuei Tanaka WATCHWORDS l b, 2 e, 3 d, 4-c; 5-a NEWSPtCTURE Montreal SPORTtlGHT I Chris Evert; 2 Jimmy Connors, 3-a, 4 c, 5-World Football teogue Mrs. Richard Keilholtz 1024 18th St. IMW. Mrs. H.L. White 2387 Rompot Street S E. Mrs. Charles Beck Hiawatha, Iowa /WANT AD OFFICE OPEN 8 TO 5 MONDAY THRU FRIDAY. . . UNTIL NOON SATURDAY It doesn't take a whole lot to write an ad. lf you have a pencil and a piece of paper you can jot down the essentials of anything you might have for sale. Then give us a call and let us put it into words that will encourage other people to inquire about what you are advertising. This small start . . . your pencil and paper . . . will turn into something big for you! The calls you will receive should turn into profitable results for you! Decide today about the items you have in your home which could be turned into cash . . . then dial the number listed below to place your ad! It's the start of something big! Gazette Classified Ads Phone 398-8234 JUKE BOX SOLD! AIR CONDITIONER SOLD! MOBILE HOME SOLD! JUM DO* tor SOM* ulus lur or* St lec lion ut records, kl/*) or best otter io?« lath st tr A We hove never hod a problem selling items thru the Gazette want ads. ’’ rn STlNCiMOUSE KiUO Btu air ion droner I veor old SISO HSJ 0>'.6 Gone within an hour after the Gazette came out. Always have good luck.” f-OR SALE IVOV 12*60 J bedroom tarnished, skirted and air Si HSU IV I 1861 fantastic! I v® bad good results, and I mean good results with Gazette want ads.” ;