Minutes

AAII Orange County Chapter

Monthly Meeting, November 17^th, 2007

Oasis Senior Center

800 Marguerite

Corona del Mar, CA 92625

Reported by: Rex Chen

Title: Preferreds - Wall Streets Best Kept Secret

Speakers: Ken Winans, President, Winans International

Chapter President Bob Welge brought the meeting to order at 9:00 am. In the beginning of the meeting, Bob announce the AAII Orange County’s website and the resources available on the web, including meeting minutes from past events. Bob then introduce today’s speaker, Ken Winans to discuss bout today’s topic on Preferreds.

In this talk, Ken first talks about preferred stocks and its differences with common stocks. Preferred stocks incur a much lower risk tolerance than common stocks which may see high fluctuation in the stock price. Ken indicates that preferred stocks are a great income investment providing fixed paid dividend. Although, preferred stock is similar to bonds in some ways as a fixed income generator, bonds are not traded everyday. Ken recommends an optimal portfolio of income should include both bonds and preferred stocks. A good benchmark to track the historical performance of preferred stocks is Winans International U.S. Preferred Stock Index.

More resources about preferred stocks can be found in these sites:

http://www.winansintl.com/

http://www.globalfinancialdata.com/

Following the conclusion of Ken’s presentation, Bob adjourned the meeting at 11:00 am.