Page 19
Winston- Sa km Ch ronicle
NEW MtNORfTY "
Development
Report
SECTION
Highlighting the new
members of Minority
Businesses in
Winston-Salem
/
Wf are pleased to support the
, Chamber of Commerce
Minority Business Initiative
ECONOMIC VIEWS
'/* . ' * . . - ? ? ; ? V"-- ?
MANAGING BOND INVESTMENTS * ~
IN A CHANGING INTEREST - V ? ' ?'
KAItbNVIRONMtNl
-* . -i . - ... v"
(Michael J. Robinson, associate vice president, Invest
ments, Dean Witter Reynolds, Inc.)'
* ?? In 1993, the long, downward spiral of interest rates
drove Short- aOTlong'-TentTbond yields tolKeirlowest levels
in thirty years. Whether the
upward trend in interest rates that
began in 1994 will continue
remains to be seen. Although one
of the best bond investment strate
, gies takes interest rate volatility
into consideration, many investors
fail to chart a course that can with
stand. or even possibly benefit
from, a changing interest rate
jenvitonmen t. ? . ' . '
Maturity Diversification Is Key
A common mistake many bond
Mike Robinson
investors make is failure to diversify, not only by asset
class, hut by maturity. Structuring a portfolio with only
short-term securities subjects investors to reinvestment risk
? if interest rates go down, their maturing principal will
earn lower returns when they reinvest the proceeds. On the
other hand, while holding long-term securities typically may
I provide hig}i er yields, it doesn't offer the liquidity necessary
to take advantage on^vestment opportunities as they arise.
Since investors can't predict the exkct highs and lows
of interest rates, in-order to increase portfolio return and
Teduce exposure to reinvestment riskTthe wise investor opts
to construct a portfolio with a variety of maturities, from
short-term to long-term, using a ladder portfolio strategy.
The Ladder Portfolio Strategy
The Ladder portfolio method of investing is structured
to perform in all economic climates, and considers current
i merest rates as wel 1 as anticipates changes in the future.
This strategy has become increasingly popular among fixed
inmmp investors SB innovative, yet conservative meaft*
of staggering the maturities of a group of bonds within their
portfolios. When maturing principal becomes available for
reinvestment, an investor can choose to reinvest that portion
of the portfolio in either short- or long-term securities,
and/or vary the portfolio's asset mix, depending on the
interest rate environment and his or her financial objectives
at the time. :
? The Ladder Strategy Can Work In Every Rate Environ
ment* ?* -
* If interest rates rise, the investor can reinvest principal
from the ladder's maturing short-term securities into longer
term. higher-yielding securities, effectively increasing the
overall return of the portfolio. Liquidity is maintained as the
securities originally purchased continually shorten and
mature as time passes.
* If interest rates fall, higher yields are already locked
in through the long-term securities in the portfolio, minimiz
ing reinvestment risk. In this environment, the investor can
reinvest maturing principal into shorter-term securities to
further enhance liquidity in anticipation of future rate
increases, or move out further in maturity to capture higher
current rates.
* In a stable interest rate environment, the investor can
continue his or her current investment pattern of reinvesting
principal to effectively increase the overall portfolio yield
and maintain liquidity.
If you are seeking the safety of a U.S. government
guarantee of interest and principal, a ladder portfolio works
very well with taxable fixed income securities such as gov
ernment-backed zero coupon bonds or treasury securities.
Depending on your investment objectives, ladders may also
be constructed using other fixed income investments, such
as high-quality corporate bonds.
* Although a ladder portfolio may not outperform other
investment including bonds of a particular issuer or maturity
date, it may help stabilize a portfolio's performance, mini
mizing exposure of long term maturities to interest rate and
market risk while increasing overall return potential of short
term securities. ? ?
If you would like more information about laddering,
please write care of Winston-Salem Chronicle , P.O. Box
1636, Winston-Salem, N.C. 27102' '
- Convention Activity in Winston-Salem/Forsyth County
2 Dale Organization Attendance Facility
- 7/1- Britt Motivations 9.000 LJVM
-7/7 Winter Marketing 6.000 LJVM
-7/14 Black Leadership Caucus 250 Sawtooth
? 7/16 Universal Round Dance * 700 Convention Ctr.
7/28 Sigma Gamma Rho 1.000 Convention Ctr.
7/31 U.S. Tennis Association 500 WFU
BUSINESS PROFILE
. - . 45 i - ? . ??? .* , . ? ? . . . ?; ? .
Black Service Station
Owner Celebrates 1 sf Year
ByDAVID L. DILLARD
Chronicle Staff Writer
v Two years ago, Lewis Devlin said he would have
laughed at the idea of owning a service station.
After spending several years in Winston-Salem
as an insurance agent, he decided to changfe careers
instead of relocating to another city. That career move
was the creation of Devlin's Shell and the preserva
tion of one of the city's few' remaining black-owned
businesses. V ? . ? ; . , . . . 0 [' ?
"I'm the only black privately owned Shell station
between here and Raleigh," he said. "I didn't want to
move and there was a black business available. I saw
... an opportunity." . v
After 40 years in business. Joe Bacote sold the
service station, located on the corner of Martin Luther
King Jr. Drive and Fifth Street, to Devlin last July,
Devlin's Shell, which will celebrate its first
anniversary next month, is one of two black-owned
major service stations in the city.
He credits Bacote's long^ presence in the cofhmu
nitv for helping him remain successful.
"He had a good reputation," Devlin said. "The
community has accepted us well and they have not
realized that (ownership) has changed."
Devlin. 50. is a native of I
Pickens County. S.C. He
started the business with
David Duncan, a fellow dqa
con at Shiluh Baptist Church.
and Ike and Jackie Sims. Dun
can. a skilled mechanic, died,
only a month after they
acquired the business and
said the business has been
able to exist because of heavy
support from the black
churches. \
The garage is the back
bone of the station, but the gas
station is one 6f few that^ still
offers a full service that
includes free fluid arid air
checks.
"Full-service stations are fading out around the
? countrVr-buMhey arc neede-4.? "1 hope
able to grt^w here."'
Devlin currently employs three full-time and
three part-time employees. He says being an entrepre
neur doesn't give him a lot of free time, but it has
C ' ? * . ' . ' ' . ? .
to the community.
"I'm abl e to prov ide an affordable service and
help out a lot of people." he said "Money made in the
black community usually goes back into the black
vOmmunity. We are able to give people jobs and
make donations to community projects."
Lewis Devlin , Richard Rice , Ike Sims and Terrah Hammonds.
?. t
CHAMBER NEWS
East Area Council Strives to Help the Community
\ PART I of 2 PARTS
A new program, aimed at helping
area business get a bigger share of the
local market, is taking off across the
Triad beginning this month. ^ ^
Buy Local, a project of the
-Greater Winston-Salem Chamber ^f
Commerce in conjunction with the
Winston-Salem Purchasing Associa
tion. encourages consumers, business
es and government agencies to pur
chase goods and services in the local
area when accessibility, price, quality
and service are competitive.
"What we want to do is help local
businesses get a bigger piece of the
?pie," ex-pl aifled-Ga*ef4fl?-B-Gfeeflr-a
local consultant, who is vice chairman
v of membership on the. Executive
Committee of the Chamber's Board of
Directors.
'Chamber member* sav that
exciting. It's great that these efforts
are bringing new jobs to the commu
n lty. But people want to know what s
in it for them. And. of course, that
question is always going to be very
high on any list." she said. "Buy
Local is designed to give local busi
nesses an opportunity to increase their
base." : i :
Robyfl M i * on ? v-ice
devel^pment and small business for
the Chamber, explained that the pro
gram, which includes the Piedmont
Triad area, has a dual track. While
major business purchasing is the pri
mary focus. Buy Local encourages
ness and individual consumer level. V
After all. each of us makes deci
sions every day - to order trom a cata
log or to buy in ajocal store - and one
of our coals is to heighten awareness
of the impact of these buying deci:
sions as well." she said. "Dollars
spent in the community have a multi
three to
-seven^imes^arung-wkh-the-first-doJ?
lar paid. -That can clearly pay off for
Winston-Salem in jobs, residences,
business growth and general well
being in the community."
Groundwork for Buy Local
began in February when the Chamber
ty's largest employers to find out
about their buying habits. With the
results, the Chamber compared what
companies are doing now to what
they could do in the future.
Forty-five companies answered
the survey, providing extensive data
including dollars spent locally in
1993. li_
Pitt Named President of Sales & Marketing Executives of W-S
By VERONICA CLEMONS
Chronicle Staff Writer
Mike Pitt, advertising manager for
the Winston-Salem Chronicle , is the
new president of Sales and Marketing
Executives of Winston-Salem.
Pitt, a seven-year member of the .
organization, will be replacing Hanes
Mall General Manager Tom Winstead
as president. Pitt has served on the
board of directors and as vice-presi
dent. Winstead added that Pitt is the
first African-American president for
the Winston-Salem affiliate.
"Mike will bring a strong sense of
organization, a high sense of profes
sionalism and a different perspective
within the business community," he
said. ? -
Pitt said SME is one of the best
networking opportunities for sales and
marketing executives. In addition to
meeting peers in the same profession,
Pitt said members can "learn to grow as
professionals, exchange ideas, form
partnerships within business and
outside of business."
Pitt said his main task as the new
president will be to keep SME moving
in the same direction it is now.
"I am committed to following the -
groundwork laid by my predecessor by
keeping the organization as a learning
one with good speakers and promo
tions," he said. "The board of directors
and I will work to insure that the fiscal
health of the organization remains
sound, and that we maintain the code
of ethics in membership criteria."
Mike Pitt
Pitt added that he wants to get
more minorities involved with the
organization. Many African-American
marketing professionals do not realize
the power of networking, getting their
names out among their peers, he said.
"I can look at all the opportunities
and possibilities we have in this small
group." -he (said. "Too many times we
put up a shingle and wait for the busi
ness to come. Building relationships is
the best way to help our businesses to
grow."
SME is a national organization oT
sales and marketing executives. Affili
ates meet monthly with an ultimate
goal of ensuring better standards of liv
ing through sales and marketing, and
providing sales and marketing execu-.
tives. associations and members with
effective leadership. This goal is
achieved through objectives such as
assisting in the development of and
supporting local sales and marketing
executives' associations, encouraging
the cooperation and exchange of infor
mation. enhancing professional devel- ?
opment at all levels of sales and mar
keting and making information avail
able about the profession.
Perspective members of SME
must be approved by the board of
directors and be involved in sales and
marketing in one or more of the follow
ing areas: sales management, market
ing management, training management,
consulting management, business own- -
ership and educator member.
i Viohavk i
<-Pf?otog/taf)lay
Wedding & Anniversary Portraits ? Children's Portraits
Blac k & White Publicity Photos - 24 Mr. Turnaround
Also Custom Framing
213 W. Fourth St. ? 748-9797
Conveniently located downtown next to Hines Shoes
*
Someone Who Cares...
Lewis &
DAGGETT
ATT( )RNEYS AT LAW. P. A.
765-7777 , ;
Practice limited to accidents, . injuries A wrongful death