Personal Snapshots
Forecasts & Strategies
May 2002

DO YOU NEED HELP MANAGING YOUR MONEY?

"Anyone can buy a stock; it takes a real genius to make money at it."

— Warren Buffett

I have an exciting announcement to make. Fund Advisors of America, based in Maitland, Florida, is unveiling two managed accounts based on my free market principles and many of the investment recommendations I make in Forecasts & Strategies. I have wanted to do this for some time, and many subscribers have asked about such a possibility. Now it is a reality. You can have a capable professional money manager invest according to my philosophy and recommendations.

One portfolio is dedicated to growth, the other to high income. And they will be run in collaboration with my longtime friend and colleague C.A. Green, the investment director of The Oxford Club, who has the time, ability and experience to monitor the investments full-time.

The Income Portfolio will seek to maximize income by investing in a variety of high-income vehicles including closed-end funds, bonds, preferred shares, utilities, real estate investment trusts and other high-dividend-paying shares, such as those referred to in my newsletter.

The Growth Portfolio will seek to maximize returns by using a combination of well-managed funds and individual stocks that have better-than-average potential for appreciation.

The accounts will be asset-allocated so that your money will be at work in whatever sectors have the best prospects. In addition, the money managers will seek to protect your profits in individual securities by using a trailing stop policy. A trailing stop allows you to keep holding a stock that is trending up but sell it automatically when it begins to pull back. It’s a disciplined way of cutting losses and letting your profits run.

The individual stock picks of C.A. Green will be based on one of the best indicators of future stock performance—what the insiders are doing. They are required to file buying and selling of company shares with the Securities and Exchange Commission (SEC). Are they buying? Are they selling? If the company officials who run a firm are buying significant amounts of their company’s stock with their own money at current market prices, that’s a very strong signal that the company is making the right moves. And if they are selling regularly, it suggests just the opposite. Information on insider buying and selling must be disclosed every quarter, but such information is often difficult to access properly. Green has considerable experience in this area.

The minimum for our managed accounts is $50,000. The growth portfolio has an annual fee of 2% or less, depending how much you invest. The annual fee for the high-income account is 1% or less. Both accounts charge less for larger investments. Because these portfolios are based on my recommendations, I will be paid a referral fee for this service.

The accounts are managed through Ameritrade so the costs of buying or selling the securities in the accounts is negligible. (Ameritrade generally charges $8 per trade.)

For more information on these managed accounts, or to receive an application and transfer form, contact Greg Galloway at Fund Advisors of America, 800/438-3040 or 407/667-4729. Address: 101 Southhall, Suite 400, Maitland, Florida 32751.

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