TEARING DOWN FRUITDALE SCHOOL

Recent Picture Of Clear Creek A Major Fruitdale Landmark

All I Needed To Learn I Learned At Fruitdale School In my last post, I talked about a phenomenon known as "Creative Destruction." It's a process by which our society can change for the better. Dr. Jack Makens, a friend of mine from high school sent me two examples from the Denver Post. One of these articles was about the Fruitdale School, the place where I obtained my first 8 years of education. I loved that old school where I learned a lot from several dedicated teachers. There is now a controversy as to whether or not the old building will be torn down. It was offered to the Wheat Ridge Historical Society for the modest sum of ten bucks. The society turned it down because it could not afford the estimated $225 per square foot it would take to remodel it. Several local citizens oppose the destruction of this school because it has been a landmark in Fruitdale Valley for almost 100 years. The building was designed and built by Temple Buell, a prominent Denver area architect. He hired several local farmers to work on the construction. I considered joining in the effort to protect the building but then decided that the significance of that school was the people I encountered there, from classmates to teachers. My memories of those days will always center around those people rather than the old red brick structure.

Another process most likely scheduled for destruction is the teaching of cursive writing (longhand or script to most of us). This is being replaced by "keyboarding skills." I never used cursive after obtaining my college degree since I learned how to print very rapidly as an air force radio operator. My guess is that cursive will gradually disappear from our culture. I, for one, will not miss it.

I'm not sure all this destruction and replacement represents an improvement. At the end of the street where I lived, there was a trolley track where you could ride down town for a dime. We used it a lot during the war when gasoline was in short supply. It was a handy way to get where you wanted to go if you wanted to go to an area near the track. Every few blocks was a green colored station with a roof where you could wait. I won't mention other uses for those buildings but I'm sure your imagination will serve you well if you think about it. The station, tracks, and trolley cars have all disappeared and those who use public transportation can stand out in the cold and catch a bus. If they hadn't constructed I-70 where those tracks ran, they might still be viable for light rail.

An Update On Intel. One common investment mistake I have made is that I am reluctant to sell a stock just because it drops in price. I have invested in companies that I rode all the way from my original price to virtually zero as I held and waited for the price to rebound. Fortunately, I recovered much of my original investment via option premiums and dividends but I would have a much larger portfolio if I had just followed the old adage of "Cut Your Losses and Let Your Profits Run." That is much easier said than done but I surely could have done better than I have. I decided on a somewhat different strategy with Intel. Although I still think it is a good company, the fact that it has dropped almost 10% since I bought it, I decided to take my loss and bail out. Well, almost bail out. I sold my 1000 share of Intel for a $1700 loss. Some of the loss was recovered from profits of $1239 in option premiums and $181 in dividends received for a net loss of $280. Just in case my decision to get out proves erroneous, I purchased an option which gives me the opportunity, but not the obligation, to repurchase my 1000 shares at $22.50 per share any time between now and January of 2013. I paid $1680 for this privilege. This allows me an almost unlimited upside potential should Intel suddenly reverse fortunes and go to unexpected heights with a downside of only $1680.

It is my opinion that option strategies are a valuable tool in the management of any investment portfolio. I would advise virtually any serious investors to learn the basic principles of option investing. Many, if not most, investment managers and stock brokers advise against their use because some don't know enough about them and others are afraid that their clients will become too aggressive and lose money. For this reason, broker dealers require that their investors obtain approval from a designated options principal before they are allowed to trade in this area. While many investors have lost considerable sums speculating in options, others find they can be a valuable tool in managing risk. In the present environment I have limited my own investment choices to those companies that offer attractive option opportunities as well as sound fundamentals.