The Rice Thresher (Houston, Tex.), Vol. 72, No. 10, Ed. 1 Friday, October 26, 1984 Page: 5 of 28
twenty eight pages : ill. ; page 20 x 14 in.View a full description of this newspaper.
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Investment manager advises on how to play the stock market
by Cathy Shin
Kenneth Fisher, investment manager and
founder of Fisher Investments in California
was in Houston last week to promote his
book Super Stocks. The main focus of the
book is a new method for choosing stocks to
invest in.
Fisher advocates using a stock price to
sales per share ratio (PSR) rather than the
currently favored price to earnings per share
ratio (P/E) method of valuation. This tool
helps investors locate companies out of
favor with Wall Street, that is, those whose
stock prices have fallen following a drop in
company profits.
Fisher researches these businesses further
to determine shich are undeservedly
unpopular and will rebound from these
crises (glitches). If the company is sound in
its ideas, management and marketing, is
young and growing, it qualifies as a Super
Company whose stock is Super Stock and
can be expected to skyrocket to three or
more times its original price within five
years. The trick, according to Fisher, is to
catch a good, expanding company in a glitch
Computer news
Although nothing earthshaking enough
for a separate article seems to have
happened in the Rice computing community
this week, / am including these little tidbits,
just so the academs who don't work for the
Thresher will have something to hitch about.
—phh, ed
• 1CSA, the It EE Computer Society, and
the Rice Campus Store are sponsoring a
microcomputer software fair on Tuesday,
November 6, from 12 to 6 p.m. in the Grand
Hall of the RMC. Demonstrations of Apple
Macintosh and IBM PC software will be
given. Twenty to thirty vendors are
expected; while no sales will be allowed
during the fair, many of the items will be
available in the campus store.
• 1CSA has announced the implementa-
tion of Columbia University's Kermit
protocol lor file transfer on the AS 9000.
This will enable users to move files between
1BV1 microcomputers and the 1CSA
mainframe; Macintosh support is expected
to be available soon.
•The 50 Macintosh computers and 14
Imagewriter printers continue to be
available for use by students, faculty, and
staff who have obtained a MacCard from
the Computer Science department office.
Applications are available outside 105
Mudd; the cards cost $1 and preparation
takes about a week. Comp 220 and 100
students still have priority on the use of these
machines, however.
•For those whose computational, word
processing, or graphic needs are not met by
microcomputers, NOTS accounts are still
available on the AS 9000. These are free
computer accounts for undergraduate and
graduate students, the use of which is limited
to coursework for which computing
resources are not already provided.
Applications are available in the user
services room in Mudd lab.
§
0
* a^erico0 ^
Nov. 15 %
AMERICAN
4? CANCER
* SOCIETY
while avoiding the popular stocks and fields
like the plague.
When asked his opinion of college-age
students investing in the stock market,
Fisher expressed great caution. "The way
most people end up with a million dollars in
the market," he said, "is to start with two
million." The key, he added, is to be
informed. The person who is unwilling to
spend at least two hours of research a month
would be much better off investing in more
stable financial concerns.
However, students do have a few
advantages, according to Fisher. Although
they may have smaller sums of money to
invest, they have the time and the resources
to research stock backgrounds readily
available. Mr. Fisher recommends three
classic books on stock market investment to
read before tackling his book: Lewis Engel's
How to Buy Stocks, Andrew Tobias'
Everything You'll ever Need to Know About
Doonesbury
the Stock Market, and Ben Graham's The
Intelligent Investor. Unfortunately for Rice
students, Fondren does not own any of these
books but should be able to obtain them
through an interlibrary loan with the
Houston Public Library. With the solid
background provided by these three, the
potential investor can better understand
Fisher's innovative concept of using PSRs.
Superstocks is the sole published work on
this theory, though its author does not claim
to be its only practitioner. Properly used in
the context of in-depth research of each
company's financial status, the PSR tool has
helped Fisher earn over 27 percent yearly for
his clients during the past five years.
A sidelight that Fisher pointed out in the
course of the interview should be of interest
to all ambitious Rice students. He said,
"People make an investment in their life
when they choose a job." Whether they are
successful in that choice or not largely
determines their success in life. Fisher thinks
that many of the same attributes that make a
company a good bet to invest in also will
make it a good place to work. "Ninety
percent of the issues are the same," he
speculated. The young, growing company
with a future offers more to the ambitious
than the popular, established business. The
same glitches "that offer opportunities for
investors to buy at bargain prices and cash in
on recovery afford individuals opportunities
to advance following a managerial
shakedown. The first appendix in
Superstocks offers 35 questions to ask in
interviewing and evaluating the
management of a company. These are the
same questions prospective management-
level employees should be asking, notes
Fisher.
Students interested in this method of
stock analysis should see the issues of Forbes
magazine for February 13, 1984, and March
12, 1984. as well as Fisher's book. Fondren
Library also maintains a collection of
Standard and Poor's reference publications.
BY GARRY TRUDEAU
HE/, MARK! BIG BREAK,
BUDDY. GUESS WHO'S
BEEN CHOSEN TO ASK
THE HELICOPTER QUES-
TION TODAY? V
OKAY, HERE'S HOW TTWORKS. WHEN
THE CHOPPER TOUCHES DOWN, REAGAN
IS HUSHED ACROSS THE LAWN. YOU
I THEN SHOUT YOUR QUESTION HESTDRS,
CUPS HIS EAR, AND SAYS, "I CAN'T
HEAR
NOT THAT IT WELL, SINCE U)E
MATTERS, BUT AIWWKNOW
WHATREYOU HIS ANSWER,I
\ GOING TO FI6URE Til JUST
' ASK HIM? FIT THE QUE5-
HON TO IT.
HEAPS
UP! HERE
COMES
THE CHOP-
PER.!
/
MR PRESIDENT! DO
YOU AGREE YOU'RE
GROWING OUT OF I CANT
j TOUCH? f HEAR! I
1HUMPA! jr CANT
THum'_y_ HEAR!
n
IT'S THE QUESTION
HELICOPTER ME SHOUT AT REAGAN
QUESTION? AS HE WALKS OUT TO
MAT'S THE HELICOPTER ON
THAT? THE SOUTH N
\ LAUJN.
m
TRADITIONALLY, SAM
DONALDSON HANDLES THE
HELICOPTER QUESTION, BUT
HE'S OUT SICK TODAY,
SO YOU'VE BEEN ^
GIVEN THE NOP. Yfe
HE THEN WAVES AND SMILES. LATER, THE
PICTURES WILL 60 ON THE EVENING
NEWS, CREATING THE IMPRESSION THAT
REA6AN IS ACCESSIBLE, THAT HE WOULD
HAVE ANSWERED THE QUESTION IF HE'D
)>% \
s>—^HEARP IT.
WV
j | TT
(At*
AND EVERY-
ONE JVST
GOES ALONG
1/JTTH THIS?
WE'VE NO CHOICE. NOT
AS L0N6 AS THERE.
EXISTS A CHANCE
HE'LL GIVE USA SUB-
STANTTVE REPLY
MR. PRESIDENT'
YOl/RE 90 YOU AGREE {Ml\
ON, YOU'RE GROUTING ,,
MARK' OUT OF TOUCH?
\\1HUMPAI
1HUMPA! ?
I 1 CANT HEAR1
CANT HEAR
A THING ' -
MARK!
YOU
BAD
BOY'
ACTUALLY, IT'S
NOT THE CHEAP
SHOT IT SEEMS.
IT'S A LE6ITI-
MATE QUESTION
&
IF REAGAN'S PEOPLE
PONT DO SOMETHING
SOON, WIS AGE ISSUE
COULD BECOME A
SERIOUS PROBLEM
\
ft
WATT A MEUM
MINUTE1 SUBBING
WHAT HAP- FORTHE
PENEP TO HUMAN
SENIORITY? BULLHORN7
SAM PICKED
YOU PER-
SONALLY.
6"(yj/tutSfiu-.—1
" ONCE. THE REPORTER.
YOU MEAN, RETIRED THE NEXT
IT'S.. IT'S PAY IT'S KIND OF
HAPPENED7 LIKE WINNING
THE LOTTERY
/ ./!■ J
■.> .PfiV;■
5/ ;*!!==,
■> £
!fc,t
J CAN'T
EVERYONE BEUEVE
6ET THAT7 NE-WS 1 NEVER
AT LAST' THOUGHT
OF THAI
^Kj
MR.PRESh pQ i YES. SIR.
PENT7 TIME HAVE TO, /YES, SIR
FOR YOUR HANDLERS7//^Kc,R
FACIAL, SIR. ! l/yftSIR
\ I /
Wr\-v
The Rice Thresher, October 26, 1984, page 5
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Havlak, Paul. The Rice Thresher (Houston, Tex.), Vol. 72, No. 10, Ed. 1 Friday, October 26, 1984, newspaper, October 26, 1984; Houston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth245572/m1/5/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Rice University Woodson Research Center.