The ICA Guide

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What ICA investors own 6 The ICA Guide A hypothetical $10,000 investment in ICA on December 31, 2011, bought part-ownership in nearly 130 companies. Of those, here are the 75 largest, representing slightly more than 79% of total assets. The fund’s 75 largest equity holdings and what a $10,000 investment bought Philip Morris International $417 Medco Health Solutions $96 CenturyLink $ 41 Royal Dutch Shell 346 GDF SUEZ 95 Lockheed Martin 41 Microsoft 344 Dominion Resources 91 Exelon 41 AT&T 334 Coca-Cola 87 Gilead Sciences 40 Dow Chemical 219 CVS/Caremark 82 Automatic Data Processing 40 Apple 210 McDonald’s 78 Deere 40 ConocoPhillips 209 Time Warner 77 State Street 37 Home Depot 196 EOG Resources 75 FirstEnergy 36 Abbott Laboratories 193 PepsiCo 74 Baker Hughes 35 JPMorgan Chase 181 Nokia 71 Avon Products 35 BP 165 Amazon.com 70 Medtronic 34 General Motors 164 Hewlett-Packard 69 Devon Energy 32 Altria 163 General Electric 65 Yahoo! 32 Union Pacific 161 United Parcel Service 63 Other equities 1,265 Schlumberger 159 NIKE 63 General Dynamics Samsung Electronics Comcast Oracle Citigroup 143 138 138 133 131 Kohl’s Waste Management Public Service Enterprise Group Aon IBM 61 60 60 60 58 Total stocks Bonds & notes Total investment securities Net cash & equivalents Total $ 9,212 121 9,333 667 $ 10,000 Wells Fargo 128 Apache 58 Chevron 126 Molson Coors Brewing 57 The fund is actively managed, so Kraft Foods 125 Time Warner Cable 56 holdings will change. United Technologies 123 KLA-Tencor 55 Texas Instruments 121 3M 55 CSX 118 Illinois Tool Works 55 Amgen 111 Johnson Controls 54 Merck 111 QUALCOMM 53 Intel 107 Capital One Financial 50 News Corp. 104 Corning 48 Verizon 102 DIRECTV 47
Investing in stocks requires skill If you could have invested $1,000 each in any five of these companies (or their predecessors) 78 years ago, which five would you own? Alcoa (replaced National Steel in 1959, which replaced Coca-Cola in 1935) American Express (replaced Manville in 1982) AT&T (previously known as SBC Communications, substituted for Goodyear in 1999) Bank of America (replaced Altria, previously known as Philip Morris, in 2008, which replaced General Foods in 1985) Boeing (replaced Inco in 1987) Caterpillar (replaced Navistar International in 1991) Chevron (replaced Honeywell in 2008) Cisco Systems (replaced General Motors in 2009) Coca-Cola (replaced Owens-Illinois in 1987, which replaced National Distillers in 1959, which replaced United Aircraft in 1934) Disney (replaced USX in 1991) DuPont (replaced Borden in 1935) ExxonMobil General Electric Hewlett-Packard (replaced Texaco in 1997) Home Depot (substituted for Sears, Roebuck in 1999) IBM (replaced Chrysler in 1979) Intel (substituted for Chevron in 1999) Johnson & Johnson (replaced Bethlehem Steel in 1997) JPMorgan Chase (replaced Primerica in 1991, which replaced American Can in 1988) Kraft Foods (replaced AIG in 2008, which was substituted for International Paper in 2004, which replaced Loew’s in 1956) McDonald’s (replaced American Brands in 1985) Merck (replaced Esmark in 1979, which replaced Corn Products in 1959) An actively managed, well-diversified portfolio can make a meaningful difference over time. ICA’s investment professionals draw on long experience and in-depth research to manage the fund’s portfolio of holdings. To illustrate this point, imagine that, 78 years ago, you could have invested $1,000 in each of any five companies in the Dow Jones Industrial Average.* When one company in the index was replaced by another, proceeds from the sale of the original company were invested in the new one. Based on that strategy, today you would have a portfolio of five of the well-known companies listed below. Sound simple? Try picking the five companies you would want to own today. Microsoft (substituted for Union Carbide in 1999) Pfizer (substituted for Eastman Kodak in 2004) Procter & Gamble 3M (replaced Anaconda in 1976, which replaced American Smelting in 1959) Travelers Companies (replaced Citigroup in 2009, which replaced Westinghouse in 1997) United Technologies (replaced Nash-Kelvinator in 1939) Verizon Communications (replaced AT&T in 2004, which replaced IBM in 1939) Walmart (replaced Woolworth in 1997) * Dow Jones Industrial Average is a price-weighted average of 30 actively traded industrial and service-oriented blue chip stocks. List is as of December 31, 2011. And how would your choices have compared with ICA? Turn the page to see how you would have done. The ICA Guide 7
Page 1 and 2: The ICA Guide 2012 edition Investor
Page 3 and 4: ICA: A 78-year history of success O
Page 5: The Klausens invested their $200,00
Page 9 and 10: How ICA is managed A fund’s long-
Page 11 and 12: $100,000,000 70,000,000 50,000,000
Page 13 and 14: Oil embargo 0.6 7.9 .4 .1 Nixon res
Page 15 and 16: Time, not timing, is what matters D
Page 17 and 18: The benefit of time Long-term inves
Page 19 and 20: Growth over a wide variety of perio
Page 21 and 22: Customizing withdrawals Over time,
Page 23 and 24: A rare opportunity If The Investmen

The ICA Guide

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