We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Market Edge Highlights: Merck, PepsiCo, Honeywell, Microsoft and PNC Financial
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 18, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1969370/the-story-of-the-greatest-mom-and-pop-investor-ever
The Story of the Greatest Mom & Pop Investor Ever
Welcome to Episode #326 of the Zacks Market Edge Podcast.
(1:00) - 50 Years of Buy and Hold Investing
(5:30) - How Did Anne Scheiber Start Her Investing Journey?
(13:05) - The Power Of Dividends and Compounding
(17:30) - Creating a 22 Million Dollar Portfolio: What Was Anne Scheiber Buying?
(27:45) - Can We Apply Anne Scheiber Investment Strategy To Our Portfolios?
(46:00) - The Big Takeaway’s From 50 Years of Investing: MRK, PEP, MSFT, HON, PNC
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about Anne Scheiber, one of the greatest mom and pop investors of all time.
Anne Scheiber: As Good as Ben Graham?
Scheiber was an auditor in the IRS before retiring at age 51. She then invested $5,000 in the stock market and over the next 50 years, grew it into $22 million.
Her portfolio was generating about $800,000 a year in dividends by the time she died at 101 years old in 1994.
She was a self-taught investor who attended annual meetings and read her broker's analyst reports. She bought stocks in industries she knew and understood, including drug companies, beverages and entertainment.
In a Jan 1, 1996 article, Money Magazine said her annualized return worked out to be 22.1% a year. That was better than Benjamin Graham's return of 17.4%, and he's considered to be one of the best investors of all time.
How'd she do it?
Scheiber bought stocks in companies she knew and liked. She also bought and held, almost never selling, even during bear markets.
In the 1970s, her drug stocks were down 50% but she held on.
She reinvested the dividends but the taxes were high by the 1980s when she was making $40,000 a month in dividend payouts. As a result, her stock broker convinced her to shift some of the dividends into tax-exempt bonds and notes, with some paying 8% completely tax free.
When she died, her portfolio was 60% stocks, 30% bonds and 10% cash.
In 1950, Scheiber bought 1,000 shares for $10,000 of big pharmaceutical company Schering-Plough. At the time of her death, that investment had grown into her largest in the portfolio and was worth $7.5 million.
Never heard of Schering-Plough? Merck bought it in 2009 for $41 billion.
Merck is a Zacks Rank #2 (Buy) stock. Shares of Merck are cheap, with a forward P/E of 12.5 and a PEG of 1.2.
Scheiber's stock broker said after her death that she didn't like investing in technology because she didn't understand it. While she did buy shares of Apple in 1985, there is no indication that she invested in Microsoft.
But Microsoft has become a favorite of long-term investors over the last decade, including Tracey who owns it in her own personal portfolio, thanks to its big free cash flow, growing earnings and its dividend.
Microsoft's dividend is yielding just 0.9% now because shares have surged 300% over the last 5 years.
Microsoft is a Zacks Rank #3 (Hold).
Should technology stocks like Microsoft be included in a long-term portfolio?
There were no banks among the top 6 stocks in Anne Scheiber's portfolio, but she owned 100 stocks so it's probable there was a bank or two among those stocks.
Before the financial crisis, banks were a part of many long-term investor portfolios for their steady earnings growth and reliable dividends. But investors have mostly abandoned the sector over the last 14 years.
PNC Financial is a large regional bank with a market cap of $71.6 billion. It has a forward P/E of just 12.1 and a PEG of 2.6.
PNC Financial pays a dividend, currently yielding 3.4%.
The banks have been out of favor the last 5 years. PNC Financial shares were up just 37.4% during that time compared to the S&P 500 which was up 77.2%.
Is it time to invest in the banks like PNC Financial again?
What Else Should You Know About Anne Scheiber's Investing Strategy?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Market Edge Highlights: Merck, PepsiCo, Honeywell, Microsoft and PNC Financial
For Immediate Release
Chicago, IL – August 18, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1969370/the-story-of-the-greatest-mom-and-pop-investor-ever
The Story of the Greatest Mom & Pop Investor Ever
Welcome to Episode #326 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about Anne Scheiber, one of the greatest mom and pop investors of all time.
Anne Scheiber: As Good as Ben Graham?
Scheiber was an auditor in the IRS before retiring at age 51. She then invested $5,000 in the stock market and over the next 50 years, grew it into $22 million.
Her portfolio was generating about $800,000 a year in dividends by the time she died at 101 years old in 1994.
She was a self-taught investor who attended annual meetings and read her broker's analyst reports. She bought stocks in industries she knew and understood, including drug companies, beverages and entertainment.
In a Jan 1, 1996 article, Money Magazine said her annualized return worked out to be 22.1% a year. That was better than Benjamin Graham's return of 17.4%, and he's considered to be one of the best investors of all time.
How'd she do it?
Scheiber bought stocks in companies she knew and liked. She also bought and held, almost never selling, even during bear markets.
In the 1970s, her drug stocks were down 50% but she held on.
She reinvested the dividends but the taxes were high by the 1980s when she was making $40,000 a month in dividend payouts. As a result, her stock broker convinced her to shift some of the dividends into tax-exempt bonds and notes, with some paying 8% completely tax free.
When she died, her portfolio was 60% stocks, 30% bonds and 10% cash.
What Would Anne Have Bought?
1. Merck (MRK - Free Report) )
In 1950, Scheiber bought 1,000 shares for $10,000 of big pharmaceutical company Schering-Plough. At the time of her death, that investment had grown into her largest in the portfolio and was worth $7.5 million.
Never heard of Schering-Plough? Merck bought it in 2009 for $41 billion.
Merck is a Zacks Rank #2 (Buy) stock. Shares of Merck are cheap, with a forward P/E of 12.5 and a PEG of 1.2.
It pays a dividend, which currently yields 3%.
Should long-term investors be considering Merck?
2. PepsiCo (PEP - Free Report) )
Scheiber liked beverage companies and bought Coca-Cola. But when Pepsi was launched, Scheiber became a fan and bought that stock too.
PepsiCo became one of Scheiber's top 6 holdings and was worth over $1 million upon her death.
PepsiCo is a Zacks Rank #2 (Buy) and pays a dividend yielding 2.6%.
But it's not as cheap as Merck. PepsiCo shares are trading at 26.7x forward earnings.
Should famous beverage brands like PepsiCo still be a part of your portfolio?
3. Honeywell (HON - Free Report) )
Scheiber bought some aerospace companies including one called Allied Signal. It became a top 6 holding in her portfolio too.
After Scheiber's death, Allied Signal was bought by Honeywell in 1999 for $15.1 billion.
Honeywell is a Zacks Rank #3 (Hold). It has a forward P/E of 23.2 and a PEG ratio of 2.4.
Honeywell also pays a dividend, currently yielding 2%.
Is Honeywell a long-term investor's dream stock?
4. Microsoft (MSFT - Free Report) )
Scheiber's stock broker said after her death that she didn't like investing in technology because she didn't understand it. While she did buy shares of Apple in 1985, there is no indication that she invested in Microsoft.
But Microsoft has become a favorite of long-term investors over the last decade, including Tracey who owns it in her own personal portfolio, thanks to its big free cash flow, growing earnings and its dividend.
Microsoft's dividend is yielding just 0.9% now because shares have surged 300% over the last 5 years.
Microsoft is a Zacks Rank #3 (Hold).
Should technology stocks like Microsoft be included in a long-term portfolio?
5. PNC Financial (PNC - Free Report) )
There were no banks among the top 6 stocks in Anne Scheiber's portfolio, but she owned 100 stocks so it's probable there was a bank or two among those stocks.
Before the financial crisis, banks were a part of many long-term investor portfolios for their steady earnings growth and reliable dividends. But investors have mostly abandoned the sector over the last 14 years.
PNC Financial is a large regional bank with a market cap of $71.6 billion. It has a forward P/E of just 12.1 and a PEG of 2.6.
PNC Financial pays a dividend, currently yielding 3.4%.
The banks have been out of favor the last 5 years. PNC Financial shares were up just 37.4% during that time compared to the S&P 500 which was up 77.2%.
Is it time to invest in the banks like PNC Financial again?
What Else Should You Know About Anne Scheiber's Investing Strategy?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.