The Smith Company

Abstract

The Smith Company is a private investment company whose primary investment objective is to provide an endowment-like stream of dividends to the members of the Smith family. The company invests primarily in publicly traded equities, although it also owns a few municipal bonds. The president's letter to shareholders for the year 2000 discusses the so-called Great Internet Bubble, the returns to growth and value stocks, the company's pre-tax equity track record since the family sold its operating businessin 1974, the dividend behavior of the S&P 500, and the misuse of corporate cash.