-Caveat Lector- from: http://aol.smartmoney.com:81/smt/candidates/index.cfm?story=sf Click Here: <A HREF="http://aol.smartmoney.com:81/smt/candidates/index.cfm?story=sf">SmartMon ey Today: Presidential Portfolios</A> ----- ONE of the presidential proposals of multimillionaire Steve Forbes is to convert Social Security benefits to individually controlled retirement accounts. Does this mean the Forbes Magazine scion -- and four-time winner of the Crystal Owl Award for economic forecasting -- will advise the nation on how to invest so we can all get the best possible returns for our golden years? Probably not. But in the meantime, here's a guy who has enough bread to take a few chances. And we can learn some risk-free lessons in the process. The publishing magnate, whose wealth has been estimated at $400 million, has at least $300,000 in Telefonos de Mexico (TMX), a hefty stake for an international investment -- though not for Forbes, whose equity investments are only a sliver of his total net worth. While Telmex seems like a great tactical stock pick -- the stock has returned over 100% for the year so far -- according to FEC filings, Forbes has had the holding since at least 1994. "If you're going to buy an individual stock in an emerging market and just sit on it," says David Yeske, "Telmex is a conservative way -- all things being equal -- to do something that's not that conservative." Other foreign telecom picks include Telefonica de Argentina (TAR) and TeleDanmark (TLD). The bulk of his stock, however, is in financial plays: Fannie Mae (FNM) and American International Group (AIG), together represent half of his stock holdings. Year-to-date, the former is in negative territory while the latter is returning double digits. Among Forbes' fund holdings, 27% is in fixed-income, 63% is in large-cap growth and value funds and 9% is in small-cap. According to Dee Lee, a man of Forbes' wealth doesn't really need mutual funds -- especially ones that generate taxable gains. "I mean, why bother? His tax return must be miserable as it is, so why add to it? At least with the stocks he can control the capital gains." Yeske notes that there doesn't seem to be any underlying strategy to Forbes' investments: "It looks like one of those portfolios that has grown one good idea at a time. Sort of a portfolio by accretion. I'm not seeing a consistent philosophy. He's got these value-oriented funds -- Davis NY Venture (NYVTX), Royce Value Trust (RVT), Oppenheimer Capital Value (QCVAX) -- side by side with Vanguard U.S. Growth (VWUSX) and Berger 100 (BEONX), which are supergrowthy funds. It's a weird mix." How does Forbes' portfolio stack up on Lee's scale of one to 10? "I look at his mutual funds and say, 'Why?' So for that, I take away points," says Lee. "But I give him a seven." Company 12/31/98 Price Curr. Price* % Change 12/31/98 Shares Est. Value Apple Computer Inc. (AAPL ) 40.94 96.00 134% 195.0 18720 American Electric Power Co. (AEP ) 47.06 32.19 -32% 170.0 5472.3 American International Group Inc. (AIG ) 77.3 107.94 40% 16171.25 1745524.725 Alaska Air Group Inc. (ALK ) 44.25 35.13 -21% 734.0 25785.42 American Express Co. (AXP ) 102.5 165.00 61% 317.0 52305 Bell Atlantic Corp. (BEL ) 54.0 61.94 15% 602.0 37287.88 BellSouth Corp. (BLS ) 49.88 47.19 -5% 652.0 30767.88 BG PLC (BRG ) 32.69 31.63 -3% 994.0 31440.22 Citigroup Inc. (C ) 33.14 55.13 66% 16974.0 935776.62 Canon Inc. (CANNY ) 21.5 40.94 90% 3767.0 154220.98 Chase Manhattan Corp. (CMB ) 71.0 77.81 10% 2465.0 191801.65 Cisco Systems Inc. (CSCO ) 46.41 104.75 126% 3490.0 365577.5 Cadbury Schweppes PLC (CSG ) 34.56 24.00 -31% 4340.0 104160 DPL Inc. (DPL ) 21.63 17.19 -21% 1503.0 25836.57 Echo Bay Mines Ltd. (ECO ) 1.75 1.31 -25% 18571.0 24328.01 Consolidated Edison Inc. (ED ) 52.88 35.06 -34% 151.0 5294.06 Edison International (EIX ) 27.88 26.00 -7% 1166.0 30316 Fannie Mae (FNM ) 74.0 61.75 -17% 20270.0 1251672.5 Fortune Brands Inc. (FO ) 31.63 33.38 6% 1028.0 34314.64 Freddie Mac (FRE ) 64.44 45.75 -29% 2716.0 124257 General Electric Co. (GE ) 102.0 156.88 54% 78.0 12236.64 Corning Inc. (GLW ) 45.0 125.06 178% 1444.0 180586.64 Intel Corp. (INTC ) 59.28 83.81 41% 10964.0 918892.84 JDS Uniphase (JDSU ) 34.69 330.75 853% 3746.0 1238989.5 Johnson & Johnson (JNJ ) 83.88 93.63 12% 1758.0 164601.54 Lucent Technologies Inc. (LU ) 54.97 76.56 39% 292.0 22355.52 MORGAN STAN DW GLOBAL OPPTY BD (MGB ) 8.31 8.44 2% 3911.0 33008.84 Metromedia International Group Inc. (MMG ) 5.44 4.19 -23% 1471.0 6163.49 Microsoft Corp. (MSFT ) 69.34 117.81 70% 3100.0 365211 New Century Financial Corp. (NCEN ) 13.38 15.13 13% 1196.0 18095.48 Norsk Hydro A/S (NHY ) 34.19 41.25 21% 951.0 39228.75 Nissan Motor Co. Ltd. (NSANY ) 5.94 8.00 35% 5471.0 43768 PG&E Corp. (PCG ) 31.5 20.25 -36% 1032.0 20898 Pfizer Inc. (PFE ) 41.63 32.75 -21% 12612.0 413043 PUTNAM MASTER INCOME TR (PMT ) 7.98 6.31 -21% 5113.0 32263.03 Reliant Energy Inc. (REI ) 32.06 22.81 -29% 2339.0 53352.59 ROYCE VALUE TRUST (RVT ) 13.75 12.94 -6% 2364.0 30590.16 Sempra Energy (SRE ) 25.38 17.75 -30% 315.0 5591.25 St. Francis Capital Corp. (STFR ) 21.13 18.50 -12% 3076.0 56906 AT&T Corp. (T ) 50.53 51.81 3% 237.0 12278.97 Telefonica de Argentina S.A. (TAR ) 27.94 30.75 10% 286.0 8794.5 Tele Danmark A/S (TLD ) 33.94 36.81 8% 2210.0 81350.1 Telefonos de Mexico S.A. de C.V. (TMX ) 48.69 111.88 130% 9242.0 1033994.96 Viacom (VIA ) 36.78125 57.56 56% 1766.0 101650.96 Warnaco Group Inc. (WAC ) 25.25 12.56 -50% 1287.0 16164.72 MCI WORLDCOM Inc. (WCOM ) 71.75 80.50 12% 2892.0 232806 Xerox Corp. (XRX ) 59.0 22.06 -63% 3644.0 80386.64 MORGAN STAN DW HI INCM ADV II (YLT) 5.0 3.38 -32% 14660.0 49550.8 Total Value $10,467,618.88 Percent Increase + 37.0% * as of 8/23/1999 - Price delayed by at least 20 minutes. Fund 12/31/98 Price Curr. Price* YTD Return 12/31/98 Shares Est. Value BERGER ONE HUNDRED (BEONX ) 14.6 17.91 47.2 % 548 11777.18 BERGER SMALL CO GR FD (BESCX ) 3.78 6.23 98.7 % 2116 15892.98 AIM INV:GL TEL&TECHA (GTTCX ) 18.76 34.46 102.3 % 426 16167.33 IDS GROWTH FUND;A (INIDX ) 37.09 50.28 37.6 % 4718 240787.09 VAN ECK:INTL GOLD;A (INIVX ) 6.59 5.72 -12.5 % 1214 7000.23 KEMPER-DREMAN:HI RTN;C R (KDHCX ) 34.14 26.12 -16.0 % 234 6710.56 DAVIS NY VENTURE;A (NYVTX ) 25.01 28.26 15.5 % 8297 239671.71 T ROWE PRICE SM-CAP STK (OTCFX ) 20.79 22.37 12.5 % 1563 36556.62 PIONEER II;A (PIOTX ) 20.91 20.26 0.4 % 1554 32624.12 OPPENHMR QUEST CP VL;A (QCVAX ) 33.93 28.89 2.7 % 236 8223.68 TEMPLETON GROWTH;A (TEPLX ) 16.37 19.58 28.0 % 4582 96009.40 VANGUARD HI YLD CORP R (VWEHX ) 7.83 7.39 2.5 % 5172 41509.18 VANGUARD WELLESLEY INC (VWINX ) 22.12 18.8 -4.4 % 723 15289.08 VANGUARD WINDSOR X (VWNDX ) 15.57 14.9 9.6 % 514 8771.27 VANGUARD US GROWTH (VWUSX) 37.49 43.45 22.1% 213 9750.14 Total Value $786,740.54 Percent Increase + 22.4% * as of 8/23/1999 - Price delayed by at least 20 minutes. OTHER ASSETS RANGE Forbes Family Holding $50,000,000+ Debentures 62,000-230,000 Americans for Hope, Growth & Opportunity (PAC) 500,000-1,000,000 GE interest plus 50,000-100,000 Bonds 245,000-910,000 Cash/Money Market 174,000-485,000 Peapack-Gladstone Financial, OTC 15,000-50,000 Peapack-Gladstone CD 15,000-50,000 Gallagher Group PLC 15,000-50,000 Merrill Lynch "Major 8 European Index" 15,000-50,000 Real Estate 11,000,000-55,000,000 Peapack-Gladstone Southdown Farm DDA 1,000-15,000 Peapack-Gladstone DDA 1,000-15,000 Centrica, OTC 1,000-15,000 Northern Pacific 1,000-15,000 Home | Contact Us | Help | Search | Symbol Lookup | Five-Day Archive| User Profile SmartMoney.com © 1999 SmartMoney. SmartMoney is a joint publishing venture of Dow Jones & Company, Inc.and Hearst Communications, Inc. All Rights Reserved. All quotes delayed by 20 minutes. Delayed quotes provided by S&P Comstock. Historical prices and fundamental data provided by Media General Financial Services. 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