The Motley Fools: Re: Fool Radio

» SteveT - Re: Fool Radio

In response to message posted by SteveT:

The Fools, Tom and David Gardner have a very fast paced hour on Public Radio. If you have heard the fools you know they never miss an opportunity to inject humor. They started out reviewing and commenting on the major business news of the week. I’ll spare you.

They next interviewed CEO of Staples Ron Sargent. Ron says business is terrific in a poor economy. They are not doing it by opening so many new stores but executing a good plan and getting back to the basics of running a good retail business. December is important but traditionally January is their best month of the year. Staples last month decided to start offering more recycled paper products because of input from customer and environmental groups as well as shareholders. The Fools asked how his salary package stacked up against Bernie Ebbers. Sargent said he drives a 10-year-old Camry with 126,000 miles and didn’t know what Bernie drives these days. Ron got started in retail by working at a Kroger grocery store while in high school and still holds shares today. Then the Fools played buy, hold, or sell with their guest. On-line retailers, Hold. Dilbert, Sell, because he was featured by a competitor in advertising a few years ago. Post-it notes, buy.

The Fools took a few phone calls and I was impressed by the length of time they spent with each caller. The first caller got a Christmas bonus and was thinking of starting a DRIP. They defined a DRIP as companies that allow direct investment without using a broker or paying fees. This can be done by dividend reinvestment or buying shares or fractional shares periodically. The caller was thinking of starting with Clorox (CLX) and wanted a couple other ideas for diversification. The Fools mention Johnson & Johnson (JNJ) in the health sector and Kraft (KFT) in the foods sector. These are a couple in a field of over 1000 stocks that participate in DRIP plans.

The next caller owns a small drug store and his accountant suggested he take a bonus this year of $50,000. He wanted to know what to do with it. He has $125,000 in business debt at 5.5%. The Fools thought he should evaluate his comfort level and put a portion towards debt reduction and invest the rest in equities. The caller has most of his equity in health stocks such as Pfizer (PFE) Merck (MRK) and Bristol-Myers (BMY). They suggested a total market index or maybe a non health care sector fund.

This caller is 24 and starting a job in the financial industry and wanted to know how to educate himself and learn to council others. The Fools asked what he had in the way of debt. He had some at 14%. They thought it would be wise to try to lower the rate. Then start a regular investment program with 5-10% of his income. They then gave him three books to read. One up on Wall Street By Peter Lynch, Buffett: The Making of an American Capitalist by Roger Lowenstein, and Bargaining and Market Behavior: Essays in Experimental Economics by Vernon Smith.

Next up a light hearted interview with Dilbert creator Scott Adams. This was a fun and educational interview but had little to do with the investment world. He was there mostly to plug a new book. In the course of the interview Scott indicated he went to 100% T-Bills yesterday because he feels there is more downside than upside. He is waiting until the dust settles.

They finished the show with the mailbag and playing name that company. The hour went fast and I enjoyed it. It was a good way to get some differing viewpoints. I think I’ll try to become a more regular listener.

-- posted by SteveT