Michael Steinberg

Historical Blog

     In 1988, I wrote and edited an investment newsletter,  The Eclectic Investor, which was published by Jake Bernstein.

Included in each issue were a number of sample portfolios.  The graphic pictured below is offered as an example of how the stock market is a living creature, constantly undergoing change.

The chart pictured is an exact reproduction of the portfolio as it appeared in the last issue of the newsletter.  It is reproduced not to tout the acumen of the stock selections, but rather the fact that not one of the companies listed remains a stand alone entity.    With the exception of Commodore, Dest Corporation, and Applied Magnetics which went bankrupt, each of the other stocks in the portfolio was acquired, taken private, or merged at a considerably higher price than the current price listed on December 28, 1988.  The portfolio was eclectic in that it had no particular theme except that each represented a special niche with unique valuation.

The market is a living creature, ever-changing, often growing by acquisition while decreasing the available number of shares available for purchase in the marketplace.  Which raises concerns at the concentration of holdings by ETFs and mutual funds.

       The simplest conclusion is to buy the future.

 

 

 

Michael14Steinberg March 27th, 2017

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