Beginning this month, the Investment Guide will be printed in color. We hope that this change will make the Guide generally more readable and the details of our charts more distinguishable. In coming months we will be making further improvements.
We have also added our corporate logo to the front page. Our clients have often asked about our “stylized castle” and why we chose it. Our offices have been located on the campus of our parent organization, the American Institute for Economic Research, since 1978. The campus includes a stone “cottage” that was completed in 1932. Though it is not technically a castle we nonetheless refer to it as such, and it inspired us to adopt it for our logo.
The three crenellations atop the image represent the three investment principles to which we adhere: Discipline, Diversification, and Low Cost.
Sell Rio Tinto
In an article last month we removed Rio Tinto PLC (ticker RTP) from our list of recommended gold mining stocks. The proceeds of any sale should be reinvested in accordance with your portfolio’s target allocations. Investors’ circumstances differ, particularly with regard to unrealized taxable gains so any sales should be considered carefully.
By holding gold mining stocks, investors gain ownership of “gold in the ground.” Our intention is to maintain a portfolio of stocks that will reflect changes in the gold price. RTP is among the world’s largest gold producers. It ranked thirteenth worldwide in gold production in 2007 among firms that mine gold.
However, RTP also engages in the mining and processing of at least 21 other mineral resources. As a result, changes in RTP’s share price are far less correlated to the gold price than those of our other recommended shares. RTP is not included in either the FTSE Gold Miners Index or the Amex Gold Miners Index.
Historically, RTP has paid a generous dividend and it has provided strong total returns. RTP’s recent price run-up reflects rapidly expanding worldwide demand for copper, iron and other industrial metals, and has been further fueled by a takeover bid from BHP Billiton.
Also in This Issue:
Five Simple Ways to Help Children and Grandchildren Financially
“How Much Money Will I Make?”
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow-Jones Industrials Ranked by Yield
Asset Class Investment Vehicles
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