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Author: Kenoops Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75885  
Subject: Postscript Date: 12/16/1999 11:06 AM
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If a retiree wanted to play it safe, but only had a small amount to invest, what I would suggest in the way of a small portfolio would be a three stock "Giant Squid": one third of your money in SPY (mirrors the S&P Index), one third in QQQ (mirrors the Nasdaq 100 Index) and one third in DIA (mirrors the DJIA). (These are unit investment trusts available on the AMEX.) These three stocks will smooth out the differences between all three Indexes and give you a very well diversified large cap portfolio of both growth and value stocks. (You can use a money market fund to store three or four years of living expenses for riding out bear markets.)
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Author: DHatch Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16688 of 75885
Subject: Re: Postscript Date: 12/21/1999 5:00 AM
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Kenoops Date: 12/16/99 11:06 AM Number: 16411
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<<If a retiree wanted to play it safe, but only had a small amount to invest, what I would suggest in the way of a small portfolio would be a three stock "Giant Squid": one third of your money in SPY (mirrors the S&P Index), one third in QQQ (mirrors the Nasdaq 100 Index) and one third in DIA (mirrors the DJIA). (These are unit investment trusts available on the AMEX.) These three stocks will smooth out the differences between all three Indexes and give you a very well diversified large cap portfolio of both growth and value stocks. (You can use a money market fund to store three or four years of living expenses for riding out bear markets.)>>

Excellent thinking!

Such a four part portfolio, which need not be in equal dollar portions, could be appropriately "balanced" periodically in such a manner as to meet the needs of most investors with simplicity, effectiveness, tax efficiency, and relative comprehension and comfort over long periods of time.

Heck, it could even be done in way less than 15 minutes each year.

I believe that it should be given very serious consideration by everyone who has even a slightly open mind.

Unfortunately, I suspect that it may be rejected by those who believe that it is too good to be true and that everything has to be so complicated.

Fortunately, not everyone will listen to us and, if we just had the sense to shut up about it, it might almost remain our little "secret".

.02



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