Dear Mr. Berko: I have been reading your column for 30 years and want to comment before asking a question. When you criticize the American consumers, as you did when at The Chicago Forum on Global Cities, it sounds like a put-down. I was miffed when you said that Americans are “stupid” consumers — that they borrow to excess and that most don’t know how to manage their cash flow. And your comments about our garages were offensive. I’m not saying you’re wrong, but it would go down better if you were more forgiving. After all, Americans have the most successful economy in the world. Please accept this as positive criticism; otherwise I love your column.
Now, I have $23,000 to invest and need your recommendation of three utility stocks for growth and income. Thank you in advance for your answer and all the good help you’ve given to your readers.
— CS, Joliet, Ill.
Dear CS: Thank you for your soft criticism, though I sense my remarks scored a bull’s-eye. I doubt that the following comments, excerpted from my speech, were overboard or offensive: “Americans purchase and own more junk than any other nation on earth. We are the only people who will borrow $35,000 for a new car and then park it in the driveway or on the front lawn. It’s parked there because the garage is stuffed with crap that’s packed tighter than pickles in a jar. Your smelly garage or your neighbor’s garage is probably crammed with an old TV set, boxes of used clothes, broken bicycles, a boat trailer, a gas generator, old tires, a clothes dryer, plumbing fixtures, engine parts, a stereo and speakers, stacks of magazines and numerous pieces of furniture. At $13.5 trillion, the U.S. has the highest aggregate household debt in the world, and looking into those garages, there’s no reason to wonder why. Japan ranks second, with $3 trillion, followed by China at $2.5 trillion and the U.K. at $2 trillion. Americans are certainly the most irresponsible consumers in the industrialized world and may be the dumbest investors, too.” I apologize if you think I am off base.
Meanwhile, here are three utilities that should perform well in the next decade. If you buy them, please tell the stockbroker to reinvest the dividends when he buys the shares for you. It can be done automatically and at no charge.
