Tue 10/31/06 Updates

UPGRADES of Interest (to me anyway)

		UPGRADES
Company	Symbol	Brokerage Firm	Upgrade From	Upgrade to
Dell	DELL	UBS	Reduce	Neutral
SiRF Technology	SIRF	Longbow	Neutral	Buy
Time Warner	TWX	Cowen & Co	Neutral	Outperform
Campbell Soup	CPB	Prudential	Underweight	Neutral
		DOWNGRADES
Company	Symbol	Brokerage Firm	Downgrade From	Downgrade to
Trump Entertainment	TRMP	KeyBanc Cap Mkts	Buy	Hold
Verizon	VZ	UBS	Buy	Neutral
Blue Nile	NILE	Piper Jaffray	Market Perform	Underperform
Kohl's	KSS	AG Edwards	Buy	Hold
Comerica	CMA	Prudential	Neutral	Underweight

Dell (DELL) is still about 38% under it's fair value estimate according to Morningstar (M*), rated 5*'s, average business risk and has a Wide Economic Moat. So, it's interesting to note it's upgrade.
SiRF Technology (SIRF) was a recommended stock I ran across yesterday in the M* forums
Trump Entertainment (TRMP) I ran across an article yesterday on CNNMoney.com titled 50 Small-Cap Stocks To Watch and remember seeing TRMP as one of the stocks being touted.
Verizon (VZ) is a DOW component
Blue Nile (NILE) I've come across on some of my searches and I figured at least some people would have heard of Kohl's (KSS) and Comerica (CMA).

A couple stocks recently added to my personal portfolio were Western Union (WU) and eBay (EBAY). These are actually the two best performing stocks in the Warm & Fuzzy index, up 27% & 23% respectively since 9/22/06. WU (127.09), EBAY (123.10) ...

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	-0.05%	12,080.73
S&P 500	0.00%	1,377.94
NASDAQ	+0.12%	2,366.71
.	.	.
DWD Indexes	.	.
DWDI	+0.25	1,068.92
LISA	+0.09	1,048.46
Warm & Fuzzy	0.00	1,095.66
Ambitious	+0.71	1,010.55
AEFKY	-1.45	1,028.06
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	-0.03%	1,031.88
Spiders SPY	-0.01%	1,048.07

Personal Portfolio	+0.29
Skip's List	-0.45

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	0.13	100.57
Biomet	3.81	117.44
Fastenal	-2.21	105.70
Home Depot	0.21	103.81
Johnson&Johnson	-0.44	105.38
Medtronic	-0.04	104.46
Microsoft	0.63	107.69
Wal-Mart	-0.50	102.05
Washington Post	0.28	105.96
Wrigley	0.15	115.85

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	-0.13	107.90
Coca-Cola	-0.09	106.20
Daimler-Chrysler AG	3.34	113.75
Home Depot	0.21	103.81
Humana	-2.61	91.67
Johnson & Johnson	-0.44	105.38
Lowe's Companies	-0.44	106.39
Target	-0.50	107.93
Toyota Motor ADR	-0.46	110.57
Worthington Industries	0.52	95.15

Mon 10/30/06 Updates -

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	-0.03%	12,086.34
S&P 500	+0.04%	1,377.93
NASDAQ	+0.56%	2,363.77
.	.	.
DWD Indexes	.	.
DWDI	-0.18	1,066.47
LISA	-0.65	1,047.68
Warm & Fuzzy	+0.23	1,095.81
Ambitious	+0.59	1,003.65
AEFKY	+1.96	1,043.32
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	-0.07%	1,032.22
Spiders SPY	-0.07%	1,048.22

Personal Portfolio	+0.49
Skip's List	+0.83

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	-0.71	100.45
Biomet	0.64	113.13
Fastenal	1.01	108.04
Home Depot	0.49	103.59
Johnson&Johnson	-0.69	105.85
Medtronic	0.06	104.51
Microsoft	0.67	107.01
Wal-Mart	-2.37	102.57
Washington Post	-0.10	105.67
Wrigley	-0.94	115.68

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	-0.01	108.04
Coca-Cola	-0.23	106.29
Daimler-Chrysler AG	0.46	110.07
Home Depot	0.49	103.59
Humana	-6.23	94.13
Johnson & Johnson	-0.69	105.85
Lowe's Companies	-0.16	106.92
Target	0.51	107.35
Toyota Motor ADR	-0.40	110.78
Worthington Industries	-0.98	94.66

Fri 10/27/06 Updates - DWDI Analysis

I thought we'd mention the differences between the Dollar Wise Decisions Index (DWDI) and the Warm & Fuzzy Index (WARM) then look at a few relevant upgrades & downgrades.
The WARM Index is comprised of stocks that are (or at least were as of 9/22/06) rated 5 stars, low risk and a wide moat. The DWDI Index is a subset of the WARM index in that it has the same initial criteria but also requires the company's portrayed by their stocks to have 10 years of increasing revenue and positive earnings per share for the last 10 years. On Friday, Sept 22, 2006 there were 10 companies which fulfilled the criteria but today there are only 6 companies left. The other four have risen in price enough that they now only sport 4 starts.
The remaining 6 stocks that still meet the original criteria are as follows

Anheuser-Busch (BUD)
Fastenal (FAST)
Home Depot (HD)
Medtronic (MDT)
Microsoft (MSFT)
Washington Post (WPO)

Those remaining six stocks are an average of 19.7% below their fair market value while the average of all ten stocks in the DWDI is 17.0% below fair market value. Speaking of percentages, keep in mind that if a stock is selling for $80 with a fair market value (fmv) of $100 then it is 20% below fmv then it will have to go up in price 25% to get to fmv.

The DWDI is a tough Index to get in. No companies can go back in time to redo their revenues or earnings per share. I'm very curious to see what the next new company might be to get added to the list. To get an idea of how long we might have to wait to see the next company I'll start reducing the 10 year criteria of increasing revenues and positive earnings per share.
w/ only 9 years - no new companies
looking back only 8 years we discover two new companies ....

eBay (EBAY) and
Berkshire Hathaway B. (BRK.B)

I consider this very exciting news because those are two companies I was looking at adding to my personal portfolio. Berkshire probably just because I think it would be really cool to say I own a share or two of their stock ...as well as being a very good company but primary motivation may be ego based.
eBay is one that I was testing in my portfolio just last night and there are two reasons for that. For one thing, as of today, EBAY is up 23% since 9/22/06 and that is after dropping over 2% today! Another reason would be based on its fundamentals in that EBAY is part of the WARM portfolio and now as we have seen - it's not too far from being able to qualify as part of the DWDI index.
My next new theory is that I'm thinking that if I were to keep decreasing the 10 year requirement of increasing revenues and positive earnings per share that I would keep adding stocks and those stocks would be mostly made up of the WARM index. Let us continue our search ...
Ooops! I missed my second reason for considering EBAY although the second reason mentioned above is quite good. EBAY is still 28.67% below fmv! Which means EBAY has to go up 40.2% to reach fmv! That's one heck of a return!
Oh, btw - no new stocks are returned when we reduce the criteria to 7 years.
no new stocks found when criteria is reduced to 6 years ...
When reduced to 5 years we have two more stocks!

Expeditors International of Washington (EXPD) (that's one I just bought)
Novartis AG ADR (NVS) (this one is a bit new to me, don't know much about it)

Dropping criteria to four years yields no new stocks ...
Dropping to 3 years yields no new stocks ...
Dropping to 2 years yields no new stocks
Dropping to 1 year yields two new stock ...

Cadbury Schweppes PLC ADR (CSG)
SLM (SLM)

Well, let's summarize this information and recap what we've done. We started with 5 star stocks, low risk, wide moat and 10 years of increasing revenues and positive earnings per share, then we started to reduce the total year requirements from 10 to 9 to 8 ... to see what new companies would be added to the mix.

5 Star Stocks, Low Risk, Wide Moats,
Years of Increasing Revenues and Positive Earnings per Share

Company/Symbol/Years of Increasing Revenues & +EPS	Stock Type	% Below FMV	Style Box
Anheuser-Busch (BUD) - 10	Slow Growth	16.32	Large-Core
Fastenal (FAST) - 10	Classic Growth	23.13	Mid-Growth
Home Depot (HD) - 10	Classic Growth	15.75	Large-Core
Medtronic (MDT) - 10	Classic Growth	23.95	Large-Growth
Microsoft (MSFT) - 10	Classic Growth	16.65	Large-Growth
Washington Post (WPO) - 10	Classic Growth	24.83	Mid-Core
eBay (EBAY) - 8	Aggressive Growth	28.67	Large-Growth
Berkshire Hathaway (BRK.B) - 8	Classic Growth	19.66	Large-Core
Expiditors International (EXPD) - 5	Classic Growth	16.04	Mid-Growth
Novartis AG ADR (NVS) - 5	Classic Growth	16.97	Large-Growth
Cadbury Schweppes PLC ADR (CSG) - 1	Classic Growth	16.29	Large-Value
SLM (SLM) - 1	Aggressive Growth	15.74	Large-Growth

Now, a few stocks of interest
UPGRADES
Company - Symbol - Brokerage Firm - Upgrade from - Upgrade to
T. Rowe Price - TROW - AG Edwards - Hold - Buy
Getty Images - GYI - Matrix Research - Hold - Buy
Boeing - BA - Matrix Research - Hold - Strong Buy
Goldcorp - GG - RBC Capital Mkts - Sector Perform - Outperform

DOWNGRADES
Company - Symbol - Brokerage Firm - Upgrade from - Upgrade to
WP Stewart - WPL - Bear Stearns - Outperform - Peer Perform
Chubb - CB - Stifel Nicolaus - Buy - Hold
Stanley Works - SWK - UBS - Buy - Neutral
Raytheon - RTN - Friedman Billings - Outperform - Mkt Perform
Gymboree - GYMB - Friedman Billings - Outperform - Mkt Perform

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	-0.60%	12,090.74
S&P 500	-0.85%	1,377.34
NASDAQ	-1.20%	2,350.62
.	.	.
DWD Indexes	.	.
DWDI	-0.76	1,068.54
LISA	-0.54	1,054.94
Warm & Fuzzy	-0.93	1,093.40
Ambitious	-0.56	999.00
AEFKY	-1.23	1,023.40
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	-0.47%	1,032.99
Spiders SPY	-0.63%	1,048.98

Personal Portfolio	-0.87
Skip's List	-0.90

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	-1.08	101.17
Biomet	-0.49	112.41
Fastenal	-3.23	106.96
Home Depot	-0.83	103.09
Johnson&Johnson	-0.94	106.58
Medtronic	-0.18	104.44
Microsoft	-0.04	106.30
Wal-Mart	-1.97	105.05
Washington Post	1.21	105.77
Wrigley	-0.08	116.77

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	-0.37	108.05
Coca-Cola	-0.57	106.54
Daimler-Chrysler AG	-0.62	109.57
Home Depot	-0.83	103.09
Humana	2.61	100.38
Johnson & Johnson	-0.94	106.58
Lowe's Companies	-0.98	107.09
Target	-1.20	106.80
Toyota Motor ADR	-0.82	111.23
Worthington Industries	-1.59	95.59

Thur 10/26/06 Updates - WARM Breaks 10% Mark!

I started to comment on this yesterday but blogger locked up and I lost that part of my post. I was doing a little analysis on the stark difference between the Warm & Fuzzy Index (WARM) and the Ambitious Index. Just take a look below - WARM is up over 10% since inception while Ambitious is up a scant 0.368%. Recall the simple stock screenings I did for each portfolio. For Warm & Fuzzy, I simply looked for 5 star stocks, below average risk and a wide moat. For Ambitious, I simply ommited the below average risk component and even that only resulted in a basket of stocks with average risk levels.
That was the difference in the screens which searched out the different stocks. When further analyzing them yesterday, I was able to confirm that the Warm stocks were much more Large Cap biased and found an average market cap of 48.3 billion dollars while the ambitious index had an average cap of only 9.0 billion dollars per company.


Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.24%	12,163.66
S&P 500	+0.50%	1,389.08
NASDAQ	+0.96%	2,379.10
.	.	.
DWD Indexes	.	.
DWDI	+0.66	1,076.82
LISA	+0.76	1,060.78
Warm & Fuzzy	+0.75	1,103.76
Ambitious	+0.27	1,003.68
AEFKY	-0.12	1,036.28
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	+0.03%	1,037.86
Spiders SPY	+0.31%	1,055.60

Personal Portfolio	+0.06
Skip's List	+0.78

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	0.75	102.27
Biomet	1.90	112.97
Fastenal	0.38	110.53
Home Depot	2.13	103.95
Johnson&Johnson	-0.01	107.60
Medtronic	-0.47	104.63
Microsoft	1.77	106.34
Wal-Mart	0.54	107.16
Washington Post	0.54	104.51
Wrigley	-0.49	116.86

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	-0.28	108.45
Coca-Cola	-0.11	107.16
Daimler-Chrysler AG	0.91	110.25
Home Depot	2.13	103.95
Humana	0.80	97.83
Johnson & Johnson	-0.01	107.60
Lowe's Companies	2.13	108.15
Target	2.07	108.10
Toyota Motor ADR	0.66	112.16
Worthington Industries	-0.84	97.14

Wed 10/24/06 Updates w/

Remember yesterday when we noted that Anheuser-Busch (BUD) was downgraded by UBS from Neutral to Reduce? Well, today BUD announced very solid third quarter results which included an earnings increase of 26%. I don't even know who UBS is but maybe they should have remained neutral towards BUD for another day until the earnings reports came out.


Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.06%	12,134.68
S&P 500	+0.35%	1,382.22
NASDAQ	+0.50%	2,356.59
.	.	.
DWD Indexes	.	.
DWDI	+0.12	1,070.15
LISA	+0.03	1,052.91
Warm & Fuzzy	+0.99	1,095.88
Ambitious	+0.12	1,001.21
AEFKY	+0.63	1,037.60
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	+0.15%	1,037.52
Spiders SPY	+0.34%	1,052.33

Personal Portfolio	+0.53
Skip's List	+0.55

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	2.07	101.51
Biomet	0.08	110.86
Fastenal	0.07	110.11
Home Depot	0.27	101.78
Johnson&Johnson	0.12	107.62
Medtronic	-0.06	105.13
Microsoft	0.11	106.19
Wal-Mart	-0.88	105.30
Washington Post	0.57	104.22
Wrigley	-0.90	117.44

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	-0.54	108.75
Coca-Cola	0.37	107.27
Daimler-Chrysler AG	4.49	109.25
Home Depot	0.27	101.78
Humana	-3.35	97.05
Johnson & Johnson	0.12	107.62
Lowe's Companies	-1.48	105.89
Target	-1.73	105.91
Toyota Motor ADR	0.84	111.42
Worthington Industries	0.91	97.96

Tue 10/23/06 Updates w/ Up & Downgrades

Ford Motor (F) took a jump in price of over 5% when upgraded by Goldman Sachs from Sell to Neutral.

Knight Transportation (KNX) was downgraded by Wachovia from Outperform to Market Perform. KNX is the 'K' in AEFKY and, if I'm not mistaken, it was also the company that just posted records revenues and income ...go figure.

Anheuser-Busch (BUD) was downgraged by UBS from Neutral to Reduce.

Pfizer (PFE) was downgraded by UBS from Buy to Neutral. PFE isn't part of any DWD index but is one of my personal holdings.

Kimberly-Clark (KMB) was downgraded by Citigroup from Hold to Sell. KMB has a very nice DRIP with no fees, a reasonable monthly deposit min. of only $25, has been paying dividends since 1935 and has been increasing dividends for the past 31 years. KMB has a 3 star rating from Morningstar, which means it's trading around it's estimated Fair Value. KMB hit a 52 week high on 10/20 but dropped 2.77% today, the stock pays a 2.94% dividend yield, has a P/E ratio of 22.45, below average risk and a stewardship grade of B. It is considered a Large Value stock of Slow Growth in the Consumer Goods sector.

Worthington Industries (WOR) took a nice jump today of 3.95% after being beaten down a bit in the past few weeks. WOR is a High Yield (3.86%), Small Value stock origianlly brought to my attention by Lisa (curator of The LISA Portfolio). There are only 8 companies which fit the criteria of Small Value and High Yield with a 4+ star rating from Morningstar and WOR is one of them. Others I may have mentioned are Tuesday Morning (TUES) and W.P. Stewart Company (WPL), Weswood One (WON) is another of the eight. I keep an eye on WOR because it would fill several current needs as indicated by the Morningstar portfolio analyzer which includes a need for a High Yield stock and something in the Industrial Materials sector.

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.09%	12,127.64
S&P 500	+0.03%	1,377.38
NASDAQ	-0.46%	2,344.84
.	.	.
DWD Indexes	.	.
DWDI	0.00	1,068.87
LISA	+0.06	1,053.04
Warm & Fuzzy	+0.12	1,085.75
Ambitious	-1.73	1,001.85
AEFKY	+0.64	1,031.14
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	+0.28%	1,035.98
Spiders SPY	+0.30%	1,048.76

Personal Portfolio	-0.28
Skip's List	-0.13

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	-1.47	99.45
Biomet	-0.20	110.77
Fastenal	1.06	110.03
Home Depot	0.72	101.50
Johnson&Johnson	-0.51	107.49
Medtronic	1.03	105.19
Microsoft	-0.60	106.08
Wal-Mart	0.04	106.23
Washington Post	0.00	103.63
Wrigley	-0.17	118.51

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	-0.25	109.34
Coca-Cola	-0.53	106.91
Daimler-Chrysler AG	-0.08	104.56
Home Depot	0.72	101.50
Humana	-0.60	100.41
Johnson & Johnson	-0.51	107.49
Lowe's Companies	-1.42	107.48
Target	-1.05	107.77
Toyota Motor ADR	0.70	110.50
Worthington Industries	3.95	97.08

Mon 10/23/06 updates & Investors.com

Wm. Wrigley Jr. (WWY) hit a grand-slam today - up 13.67%! up $6.40 to $53.23
WWY is one stock that kept showing up on a lot of my different stock screenings and it looks like others have finally taken notice.
eBay (EBAY) has probably been on the biggest tear - starting at a base value of $100 on 9.22.06, EBAY is now worth $121.61 (WWY is worth $118.71)

INVESTORS.com - this week is FREE Access week at Investors.com!
Investors.com is the website for the Investors Business Daily. There is a short ad from Trade King to watch prior to the free access but, the ad took less time than for me to add the hyperlinks in this blog and I missed it.

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.95%	12,116.75
S&P 500	+0.62%	1,377.02
NASDAQ	+0.57%	2,355.56
.	.	.
DWD Indexes	.	.
DWDI	+2.30	1,068.97
LISA	+1.10	1,052.64
Warm & Fuzzy	+1.68	1,084.59
Ambitious	+0.88	1,019.85
AEFKY	-0.11	1,024.72
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	+0.78%	1,033.08
Spiders SPY	+0.46%	1,045.64

Personal Portfolio	+0.06
Skip's List	+0.78

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	0.57	100.93
Biomet	2.03	110.98
Fastenal	0.12	108.88
Home Depot	0.69	100.78
Johnson&Johnson	0.70	108.04
Medtronic	0.17	104.12
Microsoft	0.07	106.71
Wal-Mart	3.87	106.19
Washington Post	-0.38	103.63
Wrigley	13.67	118.71

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	2.06	109.61
Coca-Cola	1.13	107.48
Daimler-Chrysler AG	0.13	104.64
Home Depot	0.69	100.78
Humana	-0.57	101.02
Johnson & Johnson	0.70	108.04
Lowe's Companies	2.12	109.04
Target	2.97	108.92
Toyota Motor ADR	1.57	109.73
Worthington Industries	-0.18	93.39

DWDI vs SPDR - Fri, Oct 20, 2006

I never did mention the reasons behind adding those five stocks, now represented by AEFKY, to my portfolio. Four of the five stocks were Morningstar (MS) rated at 5 stars but one was not a MS rated stock - that one was Knight Transportation (KNX).
The KNX stock pick is partially based on trust and that trust is in the NAIC (National Association of Investors Corporation), also known as Better Investing. In the latest issue of Better Investing magazine KNX was listed as the third most actively bought stock among investment clubs (tied with Medtronics for third and Fastenal and Lowe's were first and second, respectively).

When I looked into KNX, I found it was a small, aggressive, growth company. Using MS portfolio analyzer I found that my taxable portfolio was lacking in speculative and aggressive types of stocks as well as small caps and KNX fit the bill for a small, aggressive type of stock. I trust the NAIC because I've been to their meetings and I know how stringent the criteria is for picking stocks. Also, Investment clubs tend to outperform the market by over 1%.

I was also a bit partial to KNX being a transportation type of company. Higher gas prices might take a bite out of short term profits but companies like KNX tend to adjust their prices to compensate and then when prices come back down those same type companies are not so quick to reduce their prices which tends to make for some nice numbers on the balance sheets.

It would seem my trust was well founded because after I bought the stock on 10/18/06 and after the market closed for the day, KNX posted record revenue and net income for the third quarter of 2006.

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	-0.08%	12,002.29
S&P 500	+0.12%	1,368.60
NASDAQ	+0.06%	2,342.30
.	.	.
DWD Indexes	.	.
DWDI	+0.19	1,046.54
LISA	+0.93	1,041.28
Warm & Fuzzy	+0.52	1,067.76
Ambitious	-0.47	1,011.20
AEFKY	-1.00	1,026.00
.	.	.
Benchmark Indicies	.	.
Diamonds DIA	-0.06%	1,025.04
Spiders SPY	+0.02%	1,040.85

Personal Portfolio	-0.27
Skip's List	0.06

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	-1.42	100.36
Biomet	-0.45	108.78
Fastenal	-1.08	108.75
Home Depot	0.22	100.08
Johnson&Johnson	0.85	107.29
Medtronic	0.75	103.95
Microsoft	0.49	106.64
Wal-Mart	1.81	102.24
Washington Post	-1.43	104.02
Wrigley	2.16	104.44

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	2.71	107.39
Coca-Cola	4.10	106.27
Daimler-Chrysler AG	-0.02	104.50
Home Depot	0.22	100.08
Humana	2.31	101.61
Johnson & Johnson	0.85	107.29
Lowe's Companies	-0.82	106.78
Target	1.01	105.78
Toyota Motor ADR	0.69	108.03
Worthington Industries	2.07	93.56

DWDI vs SPDR - Thur, Oct 19, 2006

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.16%	12,011.81
S&P 500	+0.07%	1,366.96
NASDAQ	+0.16%	2,340.94
.	.	.
DWD Indexes	.	.
DWDI	-0.30	1,044.70
LISA	+0.28	1,031.93
Warm & Fuzzy	+1.09	1,062.46
Ambitious	-0.07	1,006.72
AEFKY	+0.79	1,036.44
.	.	.
Benchmark Indicies	.	.
Spiders SPY	+0.16%	1,040.62
Diamonds DIA	+0.21%	1,026.92

Personal Portfolio	+0.68
Skip's List	-0.01

Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)

Stock	% Change	Value
Anheuser-Busch	-1.40	101.80
Biomet	1.47	109.28
Fastenal	-2.08	109.93
Home Depot	0.06	99.86
Johnson&Johnson	-0.16	106.38
Medtronic	-0.04	103.17
Microsoft	-0.81	106.11
Wal-Mart	0.29	100.41
Washington Post	0.13	105.53
Wrigley	-0.46	102.23

Daily recap for the 10 Stocks that make up The LISA Portfolio

Stock	% Change	Value
3M	1.15	104.56
Coca-Cola	2.16	102.09
Daimler-Chrysler AG	1.87	104.52
Home Depot	0.06	99.86
Humana	-0.76	99.31
Johnson & Johnson	-0.16	106.38
Lowe's Companies	-2.56	107.66
Target	-1.32	104.72
Toyota Motor ADR	0.58	107.29
Worthington Industries	2.06	95.54

DWDI vs SPDR - Wed, Oct 18, 2006

So, which stock did I just buy that also dropped in price more than any other stock on the NYSE, NASDAQ or AMEX combined? That dubious distinction would go to APOL - Apollo Group A which dropped a whopping 22.86% today.
On average, growth stocks took a hit today while value stocks increased in value. This is aptly reflected in the DWD indexes below where the DWDI went up an impressive 0.91% while AEFKY, which is comprised of 5 growth stocks dropped 3.47%.
(AEFKY is comprised of APOL, EXPD, FAST, KNX & Y)

The drastic drop in APOL soundly enunciates the value in a diversified portfolio. AEFKY is a small portion of my overall portfolio and each stock gets 20% of a predetermined monthly investment. In the long run the drop could be a positive move event. APOL has been a solid company financially speaking. APOL has had increasing revenues year after year along with positive earnings for the past 10 years. APOL has also maintained returns on equity (ROE) of at least 15% for the past 5 years and positive ROEs for the last 10 years.

I will probalby continue with the dollar cost averaging and long term outlook. I tend to think that even if it took two years to recoup the $11 lost today that would equate to a gain of 29.6% but, I'm sure there will be plenty of excitement between now and then since this is an aggressive Mid-Cap growth stock. We'll see what happens.

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.36%	11,992.68
S&P 500	+0.14%	1,365.96
NASDAQ	+0.33%	2,337.15
.	.	.
DWD Indexes	.	.
DWDI	+0.91%	1,047.96
LISA	+0.73%	1,029.23
Warm & Fuzzy	+0.44%	1,051.48
Ambitious	-2.08	1,008.02
AEFKY	-3.47%	1,028.86
.	.	.
Benchmark Indicies	.	.
Spiders SPY	+0.13%	1,038.94
Diamonds DIA	+0.28%	1,024.79

Personal Portfolio	+0.67
Skip's List	+0.63

Daily recap for the 10 Stocks that make up the
Dollar Wise Decisions Index DWDI

Stock	% Change	Value
Anheuser-Busch	0.16	103.25
Biomet	4.46	107.69
Fastenal	1.67	112.27
Home Depot	0.36	99.81
Johnson&Johnson	3.13	106.55
Medtronic	-1.13	103.22
Microsoft	0.28	106.98
Wal-Mart	0.14	100.12
Washington Post	-0.63	105.38
Wrigley	0.41	102.70

Daily recap for the 10 Stocks that make up
The LISA Portfolio

Stock	% Change	Value
3M	-0.36	103.37
Coca-Cola	0.39	99.93
Daimler-Chrysler AG	0.69	102.60
Home Depot	0.36	99.81
Humana	1.27	100.08
Johnson & Johnson	3.13	106.55
Lowe's Companies	2.62	110.48
Target	-0.15	106.13
Toyota Motor ADR	0.37	106.67
Worthington Industries	-1.39	93.61

DWDI vs SPDR - Tue, Oct 17, 2006

Starting tonight we have added AEFKY which represents the stocks APOL, EXPD, FAST, KNX & Y. AEFKY has the same basis as the other self created indexes. Namely, DWDI, LISA, Ambitious & WARM which means their starting price came from the closing prices as of 09/22/06 at which time each portfolio had a value of $1,000.

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	-0.25%	11,950.66
S&P 500	-0.37%	1,364.05
NASDAQ	-0.80%	2,344.95
DWDI	-0.24%	1,038.74
LISA	-0.88%	1,022.11
AEFKY	-2.32%	1,074.90
SPY	-0.31%	1,037.58
DIA	-0.17%	1,021.96

Personal Portfolio	-0.43*
DWD Warm & Fuzzy Index	-0.56
DWD Ambitious Index	-0.87
Skip's List	-0.28

*the non-retirement portion of my portfolio was actually up +0.05%


Daily recap for the 10 Stocks that make up the
Dollar Wise Decisions Index DWDI

Stock	% Change	Value
Anheuser-Busch	0.02	103.08
Biomet	-0.63	103.10
Fastenal	-1.50	110.43
Home Depot	-1.62	99.44
Johnson&Johnson	1.77	103.32
Medtronic	0.04	104.40
Microsoft	-0.04	106.68
Wal-Mart	-0.08	99.98
Washington Post	-0.63	106.05
Wrigley	0.28	102.27

Daily recap for the 10 Stocks that make up
The LISA Portfolio

Stock	% Change	Value
3M	0.07	103.74
Coca-Cola	-1.04	99.54
Daimler-Chrysler AG	-0.16	101.90
Home Depot	-1.62	99.44
Humana	0.28	98.82
Johnson & Johnson	1.77	103.32
Lowe's Companies	-1.89	107.84
Target	-1.64	106.29
Toyota Motor ADR	-1.98	106.28
Worthington Industries	-2.60	94.93

Stock Analysis Spreadsheet

Stock Analysis Spreadsheet

In an effort to help properly diversify my portfolio I've created a stock analysis spreadsheet predominately based on stocks found in Morningstar with 4 or 5 star ratings. An initial search was implemented looking for 4 or 5 star stocks and about 350 stocks were returned. I went through the list and picked out about 65 of them that I either recognized or had been studying in recent weeks. I needed to know how any of these stocks might fit into my portfolio which is why I created the spreadsheet. You can view the spreadsheet by clicking on the link at the beginning of this post however a bit of explanation may prove useful in helping to use the spreadsheet to its fullest potential.

Stock Matrix
At the top of the spreadsheet is a stock matrix with the stock style going across the top and the stock type along the side. The stock style refers to whether a stock is Large, Medium or Small Cap and then each market cap size is further subdivided into Value, Core or Growth.
The stock type defines the stocks as either High Yield, Distressed, Hard Assets, Cyclical, Slow Growth, Classic Growth, Aggressive Growth or Speculative Growth.

Within the matrix are various stock symbols in their proper position and, as such, one may easily identify a stocks style and type. To learn more about a company of interest or to just learn what a particular symbol represents you can simply scroll down the column the symbol is in until you run into that symbol again. Then, if you look to the left you'll see the name of the company and you may also notice the symbol you find to be in blue or bold faced, in italics or have a box around it. These indicators give additional information concerning the stock in question.

Additional Stock Screening
In addition to screening for stocks with 4 or more stars I then took the results of that screening and subjected the results to additional screenings which include three screens which look at the companies financials and one screen which looks how the stock has done compared to the S&P 500. These screens are described in greater detail below.

Terrific 10 Year Records - Blue
Not many companies can boost sales every year for 10 years and maintain consistently positive earnings. This screen looks for stocks that have increased their revenues every year for the past 10 years and have had earnings per share greater than zero for the past 10 years. Distressed stocks are excluded -- 347 stocks pass this screen. When we limit the 347 to only stocks with 4 or more stars then only 48 stocks pass this test. These companies are highlighted in blue.

Wealth Creators - BOLD
The key to creating wealth for shareholders is maintaining healthy returns on capital. Here we screen for companies that have maintained returns on equity of at least 15% in each of the past five years, and which have had positive ROEs for the past 10 years -- 143 stocks pass this test. When subjected to the 4+ star requirement we are left with 33 stocks. These companies have their stock symbol in bold.

Cash Cows - bordered cells
If cash is king, these companies wear crowns. The companies that pass this screen have generated growing free cash flows for the past three years, and boast cash on the balance sheet equal to at least 5% of total assets. Plus, for every dollar they generate in sales, these companies have generated at least $0.05 per share in free cash flow in each of the past three years.

I'm probably not sophisticated enough to fully appreciate what a generous cash flow means in terms of stock picking but, Benjamin Graham (Warren Buffett's teacher) liked companies with a lot of cash and even Buffett is purported to like companies with positive free cash flows and this screen would certainly fit the bill. 177 stocks pass this screen but only 23 once we add the 4+ star requirement.

Stock Beats the S&P - italics
We all know that past performance doesn't necessarily indicate future results but, isn't it nice to at least consider stocks that have beat the S&P 500 over the last 3, 5 and 10 years?
A whopping 1,370 stocks have beat the S&P 500 over the last 3, 5 and 10 years but, only 76 of them are considered good values now by virtue of being rated with 4 or 5 stars.

incidentally - there are only 15 companies with 5 star ratings that have beat the S&P for the last 3, 5 and 10 years ...they are Alleghany, Apache, Berkshire Hathaway B, Boyd Gaming, Centex,
Cheniere Energy, Devon Energy, Fastenal, First American, Legg Mason, MSC Industrial Direct Co., Newfield Exploration, Novartis AG ADR, Urban Outfitters & Whole Foods Market.

MorningStar Rating - 4* or 5*
The more stars a stock has the greater the value according to MorningStar (MS). MS analysts attempt to quantitatively determine a fair value estimate for each stock as well as a price to consider buy and a price to consider selling. Let's use DELL as an example.

DELL
Morningstar Rating 5*
Consider Buying $30.10
Fair Value Estimate $39.00
Consider Selling $48.90

DELL is a Large Core type of company with a Classic Growth style which closed today at $24.62 which is lower than the Consider Buying price cited by MS which tends to make for an attractive entry price. Perhaps a downside is the fact that MS gave DELL a Stewardship Grade of D. The Stewardship Grade refers both to the quality of management and how well managements goals are in line with the shareholders.

If available, to the left of each stock symbol will be the MS star rating.

Now, as a stocks price goes up then stars are removed - by the time it current price is around it's Fair Value Estimate the number of stars would drop to 3. When a stock gets to one star then MS suggest one may consider selling.

These star ratings are dynamic. About a month ago there were about 126 five star stocks and, having just checked, that number is now down to 99. Case in point - this morning I placed an order which included buying EXPD which, at the time, was rated with 5 stars but since the stock went up over 3% today it's now a 4 star stock.

It's nice to see Blue Bold faced stocks in italics and from the current list of 67 stocks only two of them qualify - Walgreens (WAG) and Student Loan (STU)
WAG was rated five stars during the months of April, May and most all of June when it's price was at or below $43/share then enjoyed a nice run to a high of $51/share - a nice 18+% return over a few months time until Wal-Mart scared some investors with their $4 prescription plan.
Student Loan I've been tracking since 09/22/06 when it was $186.50 and was 5 stars until a few days ago. STU closed today at $206.75

DWDI vs SPDR - Mon, Oct 16, 2006

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.17%	11,980.92
S&P 500	+0.25%	1,369.05
NASDAQ	+0.28%	2,363.84
DWDI	+0.12%	1,041.35
LISA	+0.12%	1,031.35
SPY	+0.15%	1,040.85
DIA	+0.11%	1,023.67

Personal Portfolio	+0.97
DWD Warm & Fuzzy Index	+0.35
DWD Ambitious Index	+0.72
Skip's List	-0.16

Daily recap for the 10 Stocks that make up the
Dollar Wise Decisions Index DWDI

Stock	% Change	Value
Anheuser-Busch	1.21	103.05
Biomet	-0.59	103.75
Fastenal	0.23	112.11
Home Depot	-1.49	101.09
Johnson&Johnson	0.54	101.52
Medtronic	0.02	104.36
Microsoft	0.28	106.71
Wal-Mart	-0.29	100.06
Washington Post	0.83	106.72
Wrigley	0.37	101.98

Daily recap for the 10 Stocks that make up
The LISA Portfolio

Stock	% Change	Value
3M	0.46	103.67
Coca-Cola	0.52	100.59
Daimler-Chrysler AG	0.02	102.06
Home Depot	-1.49	101.09
Humana	1.10	98.55
Johnson & Johnson	0.54	101.52
Lowe's Companies	0.61	109.92
Target	-0.72	108.06
Toyota Motor ADR	-0.15	108.43
Worthington Industries	0.40	97.47

Even though not tracked on these updates, small cap stocks continue to rule.
Whenever I update the market changes from MorningStar I get to see the overall market changes for Small, Mid and Large Cap stocks in Value, Core and Growth Catagories. Today, even though the large cap stocks went up 0.1% to 0.3% the small caps went up 0.6% to 1.2%

In the previous post I mentioned five stocks I purchased which deviated from the stocks I normally hold to help better diversify my portfolio and maybe provide some higher overall returns. I think I'm going to create an index for those companies based on their 9/22/06 closing prices and equally distributed meaning $200 per stock for a total of $1000 just to track how those five stocks do relative to the other indicies I'm already tracking.

I'm not quite sure what to call the portfolio of five stocks, might take the first letter from each stock symbol - The AEFKY Index ....we'll see :)

Recent Additions APOL, EXPD, FAST, KNX, Y

Today I initiated investments in APOL, EXPD, FAST, KNX & Y to be purchased on the 18th of each month starting in October, 2006.
In this post I will cite my rationalization for each purchase, followed by a table of valuation statistics and finally a short summary of what each company does.
Note - the ensuing table is best viewed with browser view size set to Medium.

Data on Recent Additions to Personal Portfolio

Valuation	APOL	EXPD	FAST	KNX	Y
Opening Price 10/16/06	$50.49	$48.23	$42.61	18.94	$292.00
Beta	0.02	0.51	0.70	1.17	0.19
Return on Equity	72.13	27.19	23.77	19.26	4.17
Institutional Ownership	84.4%	92.7%	70.8%	75.3%	63.7%
Dividend Yield	na	0.47	0.94	0.42	na
P/E Ratio	19.60	42.80	33.40	24.10	29.50
Earnings/Share	2.53	1.10	1.27	0.78	11.51
Market Capitalization	8.7 Bil	10.3 Bil	6.4 Bil	1.6 Bil	2.3 Bil
Sales	2.409 Bil	4.303 Bil	4	0.626 Bil	1.2 Bil
Stock Scouter Rating	10	5	10	9	5
MorningStar Data	APOL	EXPD	FAST	KNX	Y
MS Rating	5 Stars	5 Stars	5 Stars	na	5 Stars
Business Risk	Average	Below Ave	Below Ave	na	Average
Economic Moat	Wide	Wide	Wide	na	Narrow
Stewardship Grade	C	A	A	na	A
Consider Buying	$54.00	$47.70	$45.20	na	$319.20
Fair Value Estimate	$70.00	$56.00	$45.20	na	$414.00
Consider Selling	$87.70	$73.50	$69.60	na	$518.70
MS Style Box	Mid Growth	Mid Growth	Mid Growth	Small Growth	Mid Core
Stock Growth Type	Aggressive	Classic	Classic	Aggressive	Speculative
Sector	Consumer	Business	Business	Business	Financial
Industry	Education	Transportation	Distributors	LandTransport	Insurance
1	2	3	4	5	6

Apollo Group - APOL - What Does This Company Do?
Apollo Group provides postsecondary education to working adults through the University of Phoenix, UOP Online, and the Institute for Professional Development. Its Western International University segment targets younger working adults. Apollo has 256 campuses and learning centers nationwide. At the end of the fiscal third quarter of 2006, enrollment was 323,100 students. Programs include business, information technology, education, and nursing.

Expeditors International of Washington - EXPD
What Does This Company Do?
Based in Seattle, Expeditors is primarily a consolidator and secondarily a forwarder of international air and ocean freight. It buys cargo space in bulk and resells it to customers needing shipping services. Expeditors also provides customs brokerage and other related logistics services. Its freight brokerage business primarily involves shipments to and from Asia, the United States, and Europe, with the first two constituting the bulk of business.

Fastenal - FAST - What Does This Company Do?
Fastenal supplies customers, including manufacturers and commercial contractors, with 271,000 varieties of fasteners and 310,000 general-purpose maintenance, repair, and operations products. The company utilizes 12 North American distribution centers and an in-house truck fleet to facilitate five deliveries per week to roughly 85% of its 1,700-plus company-owned stores. Fastenal's over 6,700 store employees receive incentive compensation based on new account development.

Knight Transportation - KNX - What Does This Company Do?
Knight Transportation, Inc. (Knight) is a dry van truckload carrier based in Phoenix, Arizona. The Company also began providing temperature controlled truckload carrier services during the year ended December 31, 2004, and brokerage services during the year ended December 31, 2005. At December 31, 2005, the Company operated 20 regional dry van service centers, two regional temperature controlled service centers, and two brokerage service centers. During 2005, the Company established regional dry van service centers in Chicago, El Paso, and Reno. The Company also has three regional temperature controlled service centers, which are operated from its facilities located in Phoenix, Arizona; Idaho Falls, Idaho, and Green Bay, Wisconsin.

Alleghany - Y - What Does This Company Do?
Alleghany is an investment holding company that uses a value-oriented philosophy to acquire interests in attractive businesses. Alleghany purchases fractional and outright stakes and generally holds investments for long periods. Alleghany's three insurance subsidiaries--RSUI Holdings, Capitol Transamerica, and Darwin Underwriters--supply a broad range of specialty, property, and casualty protection. Subsidiary Alleghany Properties is a Sacramento, Calif., landlord.

DWDI vs SPDR - Fri, Oct 12, 2006

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.11%	11,960.27
S&P 500	+0.20%	1,365.62
NASDAQ	+0.47%	2,357.29
.
DWDI	-0.35%	1,040.17
LISA	-0.73%	1,030.12
SPY	+0.26%	1,039.25
DIA	+0.15%	1,022.56

Personal Portfolio	+0.03
DWD Warm & Fuzzy Index	-0.23
DWD Ambitious Index	+0.10
Skip's List	+0.16

Daily recap for the 10 Stocks that make up the
Dollar Wise Decisions Index DWDI

Stock	% Change	Value
Anheuser-Busch	0.67	100.82
Biomet	-0.12	104.37
Fastenal	-0.54	111.84
Home Depot	-2.64	102.62
Johnson&Johnson	-0.40	100.97
Medtronic	-0.82	104.33
Microsoft	0.53	106.41
Wal-Mart	0.29	100.35
Washington Post	-0.09	105.84
Wrigley	-0.42	101.60

Daily recap for the 10 Stocks that make up
The LISA Portfolio

Stock	% Change	Value
3M	-0.04	103.19
Coca-Cola	-0.07	100.07
Daimler-Chrysler AG	0.12	102.04
Home Depot	-2.64	102.62
Humana	-2.68	97.48
Johnson & Johnson	-0.40	100.97
Lowe's Companies	-0.42	109.25
Target	0.07	108.84
Toyota Motor ADR	-0.62	108.59
Worthington Industries	-0.79	97.08

DWDI vs SPDR - Thur, Oct 12, 2006

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	+0.81%	11,947.70
S&P 500	+0.95%	1,362.83
NASDAQ	+1.64%	2,346.18
DWDI	+0.68%	1,044.11
LISA	+0.79%	1,037.83
SPY	+0.87%	1,036.59
DIA	+0.74%	1,021.02

Personal Portfolio	1.02
DWD Warm & Fuzzy Index	0.70
DWD Ambitious Index	1.51
Skip's List	1.13

Daily recap for the 10 Stocks that make up the
Dollar Wise Decisions Index DWDI

Stock	% Change	Value
Anheuser-Busch	0.46	101.15
Biomet	1.08	104.50
Fastenal	2.61	112.63
Home Depot	-0.05	105.40
Johnson&Johnson	-0.40	101.38
Medtronic	-0.14	105.19
Microsoft	2.47	105.85
Wal-Mart	0.02	100.06
Washington Post	0.02	105.93
Wrigley	0.55	102.03

Daily recap for the 10 Stocks that make up
The LISA Portfolio

Stock	% Change	Value
3M	-0.05	103.23
Coca-Cola	-0.16	100.13
Daimler-Chrysler AG	2.43	101.92
Home Depot	-0.05	105.40
Humana	-0.67	100.17
Johnson & Johnson	-0.40	101.38
Lowe's Companies	1.90	109.71
Target	1.84	108.77
Toyota Motor ADR	1.00	109.27
Worthington Industries	1.89	97.85

DWDI vs SPDR - Wed, Oct 11, 2006 Recap

Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores

Market	% Change	Value
Dow	-0.41%	11,818.18
S&P 500	-0.48%	1,346.88
NASDAQ	-0.66%	2,300.14
DWDI	+0.19%	1,037.13
LISA	+0.08%	1,029.84
SPY	-0.12%	1,027.69
DIA	+0.02%	1,013.50

Personal Portfolio	+0.06
DWD Warm & Fuzzy Index	-0.27
DWD Ambitious Index	-0.27
Skip's List	+0.58

Daily recap for the 10 Stocks that make up the
Dollar Wise Decisions Index

Stock	% Change	Value
Anheuser-Busch	-1.06	100.68
Biomet	0.00	103.38
Fastenal	3.29	109.77
Home Depot	0.42	105.45
Johnson&Johnson	0.22	101.78
Medtronic	-0.71	105.34
Microsoft	-0.54	103.30
Wal-Mart	0.39	100.04
Washington Post	0.05	105.91
Wrigley	-0.29	101.47

Daily recap for the 10 Stocks that make up
The LISA Portfolio

Stock	% Change	Value
3M	0.36	103.29
Coca-Cola	0.14	100.29
Daimler-Chrysler AG	-0.38	99.50
Home Depot	0.42	105.45
Humana	-0.38	100.84
Johnson & Johnson	0.22	101.78
Lowe's Companies	0.99	107.66
Target	-0.15	106.80
Toyota Motor ADR	0.67	108.19
Worthington Industries	-1.30	96.04

WWBD? - What Would Buffett Do?

MorningStar has some pre-set screens to help people get started in their stock search and one of the screens is called Warren Buffet Stocks so, I figured it was worthwhile to investigate. According to the description

"Investing legend Warren Buggett looks for companies with strong competitive advantages--or what he calls economic moats. Here, we look for companies that our analysts classify as having either a wide or narrow economic moat. Like Buffett, we also look for companies with positive free cash flows and good returns on capital. "

I was unable to find an exact definition of a narrow moat but, many companies don't have moats at all so for right now I'm guessing a narrow moat is better than no moat. Concerning the free cash flow, the screen looks for companies with positive cash flow for the last 4 years and a return on equity that exceeds 10% for the last 3 years. This results in 351 stocks that pass his screening but doesn't leave me with that warm & fuzzy feeling since I haven't heard of so may of the companies.

So, to pare it down a bit, I add a morning star rating of 5 stars which brings our total down to 37 stocks. If I rank these 37 stocks in order of risk we find 12 companies which most people should recognize and most of which appear in the indexes already being tracked.

The 12 lowest risk, 5 Star Warren Buffett Stock Picks

Company	Symbol
3M	MMM
Anheuser-Busch	BUD
Coca-Cola	KO
Expeditors International	EXPD
ExxonMobil	XOM
Home Depot	HD
Microsoft	MSFT
Western Union	WU
United Parcel Service	UPS
Wal-Mart	WMT
Washington Post	WPO
Wrigley	WWY

It just so happens that all of these Low Risk rated stocks have a wide economic moat.

Also, all of these stocks appear in the Warm & Fuzzy index (WARM) which consist of 18 stocks that pass the criteria of 5 Stars, Low Risk, Wide Moat. The other six stocks in the WARM index which didn't pass either the free cash or 10% return on equity requirements to make it on the Buffett list are Berkshire Hathaway (how ironic!), Biomet, eBay, Fastenal, Johnson & Johnson and Medtronics.

The remaining stocks in the modified Buffett list are all Medium Risk except for one high risk stock (Ternium SA ADR). Without benefit of a table the remaining stocks are as follows;

Analog Devices
Apollo Group A
Applebee's International
Avon
Carpenter Technology
Dell
Euronet Worldwide
France Telecom SA ADR
Gannett
Getty Images
Journal Communications A
Journal Register
Labor Ready
MSC Industrial Direct Co.
Maxim Integrated Products
New York Times A
Reliance Steel and Aluminum
Telecom Corporation of New Zealand
Timberland
Tuesday Morning
UTi Worldwide
Yahoo
Zebra Technologies
Ternium SA ADR