The news came as Siemens reported stable earnings for the second quarter of the fiscal year despite a decline in sales and orders.

But the new accounting, he said, should produce more stable earnings in the long term.

Consumer-product stocks, which traditionally have stable earnings whatever the economic environment, were yesterday's standouts.

He also looks for analysts' forecasts of stable or strengthening earnings.

He said these companies had fairly stable earnings and had benefited from falling short-term interest rates.

From the start, however, he sought to expand lines of business that would generate stable earnings.

It makes it difficult for them to produce relatively stable quarterly earnings.

The portfolio leans heavily to "value stocks," reliable companies with stable earnings.

Exxon and Mobil reported stable earnings for the first quarter in the face of falling crude oil prices.

But with larger companies that have a strong franchise and stable earnings, there is less reason to exit in a hurry.