American Telephone, Stock Prices

2. The rate earned on the Standard & Poor’s index of 425 industrial stocks was about ?2% on asset value-due in part to the inclusion of the large and highly profitable IBM, which is not one of the DJIA 30 issues.

5793. Achart issued by American Telephone & Telegraph in 1971 indicates that the rates charged for residential telephone services were somewhat less in 1970 than in 1960.

4. Reported in the Wall Street Journal, October, 1970.

Chapter 3. A Century of Stock Market History: The Level of Stock Prices in Early 1. Both Standard & Poor’s and Dow Jones have separate averages for public utilities and transportation (chiefly railroad) companies. Since 1965 the New York Stock Exchange has computed an index representing the movement of all its listed common shares.

2. Made by the Center for Research in Security Prices of the University of Chicago, under a grant from the Charles E. Merrill Foundation.

3. This was first written in early 1971 with the DJIA at 940. The contrary view held generally on Wall Street was exemplified in a detailed study which reached a median valuation of 1520 for the DJIA in 1975.

This would correspond to a discounted value of, say, 1200 in mid1971. In March 1972 the DJIA was again at 940 after an intervening decline to 798. Again, Graham was right. The “detailed study” he mentions was too optimistic by an entire decade: The Dow Jones Industrial Average did not close above 1520 until December 13, 1985! Chapter 4. General Portfolio Policy: The Defensive Investor 1. A higher tax free yield, with sufficient safety, can be obtained from certain Industrial Revenue Bonds, a relative newcomer among financial inventions. They would be of interest particularly to the enterprising investor.