40 - Wednesday. Octoter 17. 1990 - North Shore News BUSINESS Check fridge for hot stecl Business journalist’s new book tells how to spot the best investments GREED AND laziness are your worst enemics. refrigerator could prove to be one of your best friends. Remember that, and you stand to make money in the stock mar- ket, according to Diane Francis. “People fall for hot tips because they are greedy and lazy,’’ said the 43-year-old business journalist who has just written her third book: The Diane Francis Inside Guide to Canada's 50 Best Stocks (Key Porter, $28.95). “The only way to be successful in the market is through observa- tion and knowledge.” Francis cited her ‘refrigerator school of investment’’ technique, which she used while researching her book. “I literally opened my fridge to see what my family was eating and who was making it,’’ she said. “I examined all of our lifestyle and consumer habits as a means of finding investor opportunities. I wanted to see where our moncy, Mr. and Mrs. Average’s, was go- ing.” Francis said her family's tastes have shifted from fast food outlets in the ’80s to more health and weight-conscious food. ‘We avoid red meat because we read somewhere that it is harmful in the long run, but we smoke and buy fancy cognacs and Scotch.’” Francis said her family rarely shops in large department stores but loves to patronize boutiques and specialty shops in regional in- door malls. **) buy fewer outfits but spend more on them, preferring classic designs that will last for years,"’ she said. ‘‘My husband buys something in Canadian Tire at least twice a month. We own a VCR and rent a lot of movies even though we pay nearly $40 a month for cable TV. ‘*We own three cars and have a monthly gasoline tab as large as the rent for our first apartment. We ali listen to the radio for hours while driving.”’ Francis, who dropped out of university at age 18 to marry Frank, 21 (they now have two children, 18 and 20), continued: “We paid off the mortgage on the $39,000 house we bought in Toronto in 1970 while we were still in our 20s. We now have more money tied up in real estate than any three Americans we know — a holiday chalet and some revenue property as well as our own home. ‘*We have undertaken enormous renovations on our home, rather than move, because there is so much value in our property (a neighbor’s place sold recently for $750,000). This has increased our square footage dramatically, which in turn has increased our hydro and natural gas heating bills.’* Noting their that many of AN INVITATION TO PARTICIPATE IN A CELEBRATION OF SMALL BUSINESS Small Business Exposition '90 Sunday, October 21, 1990 10:30 am - 5:00 pm B.C. Enterprise Centre Exhibits Workshops Business Counselling Keynote Speaker: Andre Malnar Door Prizes Entertainment Call 666-5979 for details Supported fy Miudacutioralien and Cazenship Canad THE CANADIAN CHAMBER ‘QF COMMERCE iy ® Federai Buwmess Banque lederale Development Bank de developement Const Sed Regional and Economic Sevelopment Your friends buy a home, fix it up, borrow against the increased value to buy another home, and so on — because that is the only way to eatn tax-free capital gains — Francis said: “Another way out from under the oppressive tax burden is our huge nest egg of RRSPs. We shop around banks and trust companies for the best rates and are putting increasing amounts of money into stocks and mutual funds."* Being aware of how you and others live, spend and invest is just one way to gain the knowl- edge you need to buy promising stocks, Francis said. You must also review both worldwide and Canadian trends, do research into how individual companies operate and size up both present and likely future management. ‘df you aren't prepared to spend four to five hours a week reading financial papers and doing rescarch into companies, you could easily lose money,"’ said Francis. ‘‘Even if you invest in mutual funds, that also requires quite a bit of homework, at least initially.’ Michael Grenby You can learn about investing in the stock market by joining an investment club and taking courses put on by night school, community colleges or investment houses. ‘‘This whole education process could easily take a year. There’s no hurry.”’ Then, said Francis, track eight to 10 stocks. ‘*You can be totally subjective about your choice. Pick companies like the one you work for, its suppliers and competitors. Use the background and knowl- edge you have.”’ Eventually, commit your money, buying board lots of 100 You see, paper cartons block out 98% of the natural and artificial light that alters milk’s flavour and causes substantial loss of important vitamins A and B, (riboflavin). So now what’ better for you is also better for the environment. Isnt that a refreshing thought? ifveur conununity blue box recycling program doesn't already accept paper milk cartons, they soon will, lu the meantime, you can take your cartons for reeveling to Canadien Fibre, 3971 Boundary Rd., Richmond, B.C. or to Riteway Distributors, 517 Kelvin Rd, Victoria, B.C. For more information, call the B.C. Reeveling Hotline at 732-9253 in the Lower Mainland, 1-800-667-1321 elsewhere in B.C, or International Paper at 526-0711. Today’s milk cartons. Better inside and out. IITERNATIONAL (/p) PAPER CANADA INC. Hs Se : DOLLARS AND SENSE S shares of the most promising companies. “You can start with as little as $*,000," said Francis. “You might have to use a dis- count broker to start with, but eventually -— through personal reference ithe same way you'd choose a dentist, for example) -- find a broker.’” Francis said her worst invest- ment was to act on a tip she got from her broker without doing any research on her own. “ET said I had $3,500 ! could ai- ford to lose — and I fost it on that mining stock,’’ she said. Her best investment was to buy several blue chip stocks following the Oct. 13, 1987, crash. Within a year, she had made 25 per cent of her money. Francis doesn't encourage leveraging — that is, borrowing to invest: “We have friends who borrow- ed to invest. They made more money than we did in the good times, but now they are close to bankruptcy.”” Mike Grenby is a Vancouver- based columnist and independent personal financial adviser who will answer your questions as space allows in tis column. Write to him c/o North Shore News, 1139 Lonsdale Ave., North Vancouver V7M 2H4. Before you put y our Now your paper milk cartons can be used il the cows come home. Because not only are today’s cartons recyclable, they're also the best way under the sun to keep milk fresh and wholesome.