March Returns

Index	Month	Year
Dow	-2.7%	-2.6%
Nasdaq	-2.4%	-5.8%
S&P 500	-1.6%	-2.4%
Russell 2000	-3.0%	-5.6%
Wilshire 5000	-1.9%	-2.8%

Money Magazine Issue Online

The April issue of Money Magazine is online for reading by the general public.

I subscribe to this magazine and read every issue. I find it very informative. It has stock tips and reviews of mutual funds to invest in.

Credit Score Myths

CNN Money has an article discussing eight myths some people believe about credit scores. I have been told by several people that checking your credit score will hurt it. Money discusses this and seven other commonly believed ideas about credit scores.

• You only have one credit score.
• Checking your credit score will lower your score.
• Your age, income and sex are factored into your score.
• A higher salary will boost your score.
• To remove unfavorable info just dispute it.
• Shopping around for a loan hurts your score.
• Credit card offers are hurting your score.
• When you get married your credit scores are merged.

Cash vs. Stock Mergers

Considering the large number of mergers that have been occuring recently, I figured Money Magazine's article "Mergers Are Hot. You Should Stay Cool." (Apr 2005; pgs. 116-118) would be a somewhat timely article to discuss.

They offer several tips about how to deal with mergers. Read the article as they add more information to each of the points.

• Don't rush in to buy a company being acquired after the announcement.
• Hostile takeovers can be good for the shareholders.
• Beware companies that frequently make acquisitions.
• Stay away from stock deals in popular sectors.
• Cash deals are generally better than stock deals.
• Beware companies that do stock deals when they have cash available.

They also have a couple important statistics to remember. Companies that make acquisitions using stock underperform the similar sized firms by 17.5%, where companies that use cash outperform by 16.3% over the next three years.

Berkshire Hathaway's Tax Bill

Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) paid a $3.3 billion tax bill in 2003. This amounts to about 3% of the total taxes paid by all corporations in 2003.

In 1988 corporations average tax rate for large companies was 26.5%, by 2003 the rate had dropped to 17.2%. According to the Government Accountability Office, 61% of companies have used tax loopholes and managed to avoid paying any taxes from 1996 to 2000.

Check Your Credit Score Midwest

The midwest can start requesting credit reports on March 1. These states include Illinios, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

The FACT Act amendment to the Fair Credit Reporting Act allows you to request one free credit file disclosure in a 12-month period. You can request a free report at AnnualCreditReport.com or call toll free (877) FACT-ACT. The site also has a map so you can look to see where your state is, and when you can request your free report.

If you want to check your credit report and your state doesn't have free credit reports yet, you can check them at the three consumer credit agencies: Experian, Equifax, and TransUnion for a fee of around $10.