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Light Index
Performance Update 2006

+ 16.30 %
582.73% (Since Inception - January 1994)

At the Close of 2006

Company Percent of Portfolio
Research in Motion
2.92
China Mobile
2.71
DirecTV
2.66
Garmin
2.53
Lexmark
2.46
Comcast
2.46
Cisco 2.40
BT Group 2.35
ICICI Bank 2.26
Canon 2.17
   
Disney 2.15
Wipro 2.03
Infosys 2.03
Seagate 1.99
InterActiveCorp 1.98
Fuji 1.87
Verizon 1.86
Bank of New York 1.86
CDW Corp 1.84
Fiserve 1.82
   
Philips 1.82
Symantec 1.79
IBM 1.78
Apple 1.78
SAP 1.77
Ericsson 1.76
Telmex 1.72
Intuit 1.72
Microsoft 1.72
Wells Fargo 1.70
   
Adobe 1.67
Nokia 1.67
Google 1.67
First Data/Western Union (spin-off) 1.67
VeriSign 1.65
Sony 1.58
Applied Materials 1.55
KLA-Tencor 1.52
   
Shares below this point lost money in 2006
 
Viacom 1.50
EMC 1.46
Electronic Arts 1.45
Corning 1.43
AU Optronics 1.42
Xilinx 1.42
Autodesk 1.42
Analog Devices 1.38
Texas Instruments 1.35
Qualcomm 1.32
   
Maxim Integrated Products 1.27
Dell 1.26
Amazon 1.26
Intel 1.22

Sprint Nextel
1.22
eBay 1.04
Sandisk 1.03
AMD 1.00
Yahoo 0.98
   
Major Indices
(Percent Gain)
 
Index
2006

Since 1994

Dow Industrials
16.29
231.9
S&P 500
13.62
204.0
Nasdaq
9.52
210.9
The Qs (Nasdaq-100 Tracking Index)
6.80
Not old enough
Lipper Science & Technology Fund Index
6.73
n/a


Brief History of Investment Standards


The Rail Index

1884 - 1941

The transcontinental railroad was completed in 1869, a year before John Rockefeller formed the Standard Oil Company and ten years before Thomas Edison shined his first light bulb. The railroads were the way to keep score in the economy as well as the safest place to be until the Great Depression.

Depression Years

1930 - 1942

Henry Ford built his first car in 1896, a year after the feasibility of transmitting AC power was demonstrated by Nikolai Tesla and George Westinghouse. 1896 was also the year that an unknown Charles Dow put together his list of "Industrial" stocks. GE (successor to Edison Electric) is the only one left from that group.

For the next 35 years, "new technologies," such as cars, airplanes and radios fascinated the bold. However, these technologies were considered too risky for widows and orphans who preferred the security of railroad shares and bonds.


Dow Jones Industrial Average

1942 - 1999

After the Depression years and the coming of World War II, the railroads, which had first been nationalized during World War I, became a shadow of their former selves as industrial companies like General Motors, US Steel and the Standard Oil spin-offs zoomed by to take center stage in the investment heavens.

For most of the last 60 years, with the exception of the oil crises of the 1970s, the industrial average was the place to be. But nothing lasts forever, and the industrial average is destined to go the way of the once mighty rails, which can be faintly recognized today as part of the Dow Transport list.

The Light Index

2000 - 2057

INFORMATION IS NOW THE MOST IMPORTANT COMMODITY IN THE WORLD. In 1974 oil was. For this reason, $35 for a barrel of oil no longer causes the world to shudder. Y2K, the fear of an information flow cut-off at the end of 1999, seemed much more threatening, even though everything worked out fine.

The time has come to measure the new economy in terms of those companies that are building the new worldwide economic infrastructure. The best way to do that is by using a proven collection of profitable companies that are at the heart of the information age. That collection is known as the Light Index.





Performance

   
2005
2004
2003

2002

2001 2000 1999 1998 1997 1996 1995 Inception
Light Index
7.66
8.26
47.5
(35.1) (18.7) (28.9) 137.1 60.7 24.7 16.5 42.6
486
Dow Industrials
-0.61
3.15
25.3
(16.7) (7.1) (6.1) 25.2 16.1 22.6 26.0 33.4
165
S&P 500
3.00
8.99
26.3
(23.3) (13.0) (10.1) 19.5 26.7 31.0 20.2 34.2
167
Nasdaq
1.37
8.59
50.0
(31.5) (21.0) (39.9) 85.5 39.6 21.6 22.7 39.9
183
Lipper Index
6.05
4.11
51.3
(41.3) (34.7) (30.2) 113.9 46.8 7.7 16.8 34.7
112

Model results do not reflect the deduction of any applicable fees, commissions, or other expenses that an individual may have incurred. Model does not portray or reflect the reinvestment of dividends or other earnings. The volatility of the Model may not materially reflect the volatility of any individual portfolio. Model contains equity securities of large capitalization high technology companies that are managed with a view towards capital appreciation. Model results do not represent actual trading and may not reflect the impact that material economic and market factors might have had on the management of any individual portfolio. Past performance is no guarantee of future results.

Light Index

The Light Index is divided into 3 parts: Hardware, Software & Telecom

The Hardware component is made up of Integrated Circuits, Computer Hardware & Electronics, and Imaging & Graphics.

Integrated Circuits
Analog Devices
Applied Materials
Intel
KLA-Tencor
Maxim Integrated Products
Microchip Technology
Texas Instruments
Xilinx

Computer Hardware & Electronics
Apple
Dell
IBM
Philips Electronics
Seagate Technology

Imaging & Graphics
AU Optronics
Canon
Fuji Film
Lexmark
SanDisk

The Software component is made up of Software, Media & Entertainment, and Electronic Commerce.

Software
Adobe Systems
AutoDesk
Infosys
Intuit
Microsoft
SAP
Symantec
Wipro

Electronic Commerce
Bank of New York
Fiserve
InterActiveCorp
ICICI Bank

NYMEX Holdings
VeriSign
Wells Fargo
Western Union

Media & Entertainment

DirecTV
Disney
Electronic Arts
Sony


The Telecom component is made up of Telecom, Wireless, and Internet.

Telecom
BT Group
Comcast
Corning
Telefonica SA
Telmex
Verizon

Wireless
American Movil
China Mobile Ltd
Ericsson
Garmin
Nokia
Qualcomm
Research in Motion


Internet
Amazon
Cisco Systems

eBay
EMC Corp.
Google
Yahoo



"With only 600 million people online out of a world population of six billion, the Internet is less than 10% of the way to completion. This is where the automobile was in America early in the 20th century when Henry Ford rolled out his first Model T and the Dow was still a newcomer."

HENRY HEWITT
PRESIDENT, LIGHT INDEX INVESTMENT CO
Last update January, 2006. Contact Webmaster at lightindex@lightindex.com