Ticker	Issuer	Shares	Value	%	Est. Cost	Unrealized	Class	CUSIP
—	APPLE COMPUTER	63,245	$25.08M	13.8%	$396.52	—	Common Stock	37833100
JNJ	JOHNSON & JOHNSON	105,722	$9.077M	5.0%	$59.66	0.0%	Common Stock	478160104
PG	PROCTER & GAMBLE	101,626	$7.824M	4.3%	$55.00	0.0%	Common Stock	742718109
XOM	EXXON MOBIL	85,842	$7.755M	4.3%	$53.69	0.0%	Common Stock	30231G102
WAT	WATERS CORP	60,150	$6.018M	3.3%	$95.76	0.0%	Common Stock	941848103
IBM	IBM CORPORATION	27,128	$5.184M	2.9%	$118.94	0.0%	Common Stock	459200101
HON	HONEYWELL INTL	55,375	$4.393M	2.4%	$53.13	0.0%	Common Stock	438516106
JPM	JP MORGAN CHASE & CO.	74,840	$3.95M	2.2%	$36.24	0.0%	Common Stock	46625H100
KO	COCA COLA	95,180	$3.817M	2.1%	$27.85	0.0%	Common Stock	191216100
UPS	UNITED PARCEL SERVICE	43,100	$3.727M	2.1%	$55.38	0.0%	Common Stock	911312106
MMM	3M	33,360	$3.647M	2.0%	$61.26	0.0%	Common Stock	88579Y101
SLB	SCHLUMBERGER LIMITED	49,612	$3.555M	2.0%	$52.90	0.0%	Common Stock	806857108
—	BOEING CORPORATION	34,375	$3.521M	1.9%	$102.43	—	Common Stock	97023105
—	GENERAL ELECTRIC	145,337	$3.37M	1.9%	$23.19	—	Common Stock	369604103
DIS	DISNEY (WALT) CO.	51,850	$3.274M	1.8%	$56.11	0.0%	Common Stock	254687106
EMR	EMERSON CO.	58,800	$3.206M	1.8%	$40.02	0.0%	Common Stock	291011104
QCOM	QUALCOMM	51,100	$3.121M	1.7%	$45.06	0.0%	Common Stock	747525103
—	BAXTER INTERNATIONAL	43,900	$3.04M	1.7%	$69.25	—	Common Stock	71813109
CL	COLGATE-PALMOLIVE COMPANY	51,828	$2.969M	1.6%	$44.38	0.0%	Common Stock	194162103
—	AMGEN INC.	28,500	$2.811M	1.6%	$98.63	—	Common Stock	31162100
MCD	MC DONALD'S CORPORATION	28,200	$2.791M	1.5%	$71.80	0.0%	Common Stock	580135101
BMY	BRISTOL-MYERS SQUIBB	57,600	$2.574M	1.4%	$28.67	0.0%	Common Stock	110122108
ABBV	ABBVIE INC.	62,050	$2.565M	1.4%	$26.55	0.0%	Common Stock	00287Y109
PEP	PEPSICO	28,420	$2.324M	1.3%	$56.00	0.0%	Common Stock	713448108
ORCL	ORACLE CORPORATION	75,500	$2.318M	1.3%	$27.58	0.0%	Common Stock	68389X105
MSFT	MICROSOFT CORPORATION	65,400	$2.259M	1.2%	$26.70	0.0%	Common Stock	594918104
NKE	NIKE INC.	35,000	$2.228M	1.2%	$26.53	0.0%	Common Stock	654106103
—	ABBOTT LABORATORIES	62,450	$2.178M	1.2%	$34.88	—	Common Stock	2824100
—	BERKSHIRE HATHAWAY INC. CL. ""B""	19,178	$2.146M	1.2%	$111.90	—	Common Stock	84670207
—	PRECISION CASTPARTS	8,800	$1.988M	1.1%	$225.91	—	Common Stock	740189105
DOV	DOVER CORP	25,300	$1.964M	1.1%	$39.99	0.0%	Common Stock	260003108
NVS	NOVARTIS ADR	24,900	$1.76M	1.0%	$70.68	—	Common Stock	66987V109
—	PALL CORPORATION	26,000	$1.727M	1.0%	$66.42	—	Common Stock	696429307
WTS	WATTS WATER TECHNOLOGIES	38,000	$1.722M	0.9%	$46.26	0.0%	Common Stock	942749102
—	DUPONT DE NEMOURS	28,471	$1.494M	0.8%	$52.47	—	Common Stock	263534109
UNP	UNION PACIFIC CORP.	9,625	$1.484M	0.8%	$57.06	0.0%	Common Stock	907818108
EXTR	WELLS FARGO	35,500	$1.465M	0.8%	$3.34	0.0%	Common Stock	30226D106
NSC	NORFOLK SOUTHERN CORP.	20,000	$1.453M	0.8%	$57.67	0.0%	Common Stock	655844108
CSCO	CISCO SYSTEMS	58,920	$1.433M	0.8%	$15.24	0.0%	Common Stock	17275R102
—	JACOBS ENGINEERING GROUP	25,700	$1.416M	0.8%	$55.10	—	Common Stock	469814107
—	AMERICAN EXPRESS CO.	16,900	$1.263M	0.7%	$74.73	—	Common Stock	25816109
—	VODAFONE GROUP PLC ADR	43,500	$1.25M	0.7%	$28.74	—	Common Stock	92857W209
PM	PHILIP MORRIS INTERNATIONAL	13,800	$1.195M	0.7%	$49.85	0.0%	Common Stock	718172109
—	HOWARD HUGHES CORP	10,550	$1.182M	0.7%	$112.04	—	Common Stock	44267D107
YUM	YUM! BRANDS	17,000	$1.178M	0.6%	$38.97	0.0%	Common Stock	988498101
HAL	HALLIBURTON COMPANY	26,400	$1.101M	0.6%	$33.21	0.0%	Common Stock	406216101
PFE	PFIZER	35,600	$997K	0.5%	$16.46	0.0%	Common Stock	717081103
—	BAKER HUGHES, INC.	20,200	$931K	0.5%	$46.09	—	Common Stock	57224107
KMB	KIMBERLY CLARK	9,500	$922K	0.5%	$63.06	0.0%	Common Stock	494368103
INTC	INTEL CORP.	36,400	$881K	0.5%	$17.18	0.0%	Common Stock	458140100
—	GOOGLE, INC.	990	$871K	0.5%	$879.80	—	Common Stock	38259P508
—	BP plc (ADR)	19,700	$822K	0.5%	$41.73	—	Common Stock	55622104
FDX	FEDEX CORP	8,000	$788K	0.4%	$81.95	0.0%	Common Stock	31428X106
—	OAKTREE CAPITAL GROUP, LLC	14,500	$761K	0.4%	$52.48	—	Common Stock	674001201
GS	GOLDMAN SACHS	4,950	$748K	0.4%	$120.06	0.0%	Common Stock	38141G104
LLY	LILLY (ELI) & CO.	15,000	$736K	0.4%	$42.21	0.0%	Common Stock	532457108
COP	CONOCO PHILLIPS	12,164	$735K	0.4%	$39.96	0.0%	Common Stock	20825C104
DVN	DEVON ENERGY CORP.	13,900	$721K	0.4%	$37.00	0.0%	Common Stock	25179M103
CVX	CHEVRON TEXACO	5,950	$704K	0.4%	$71.30	0.0%	Common Stock	166764100
—	DEERE & COMPANY	8,450	$686K	0.4%	$81.18	—	Common Stock	24419910
—	L-3 COMMUNICATIONS	7,900	$677K	0.4%	$85.70	—	Common Stock	502424104
—	BROADCOM CORP	19,450	$657K	0.4%	$33.78	—	Common Stock	111320107
CAT	CATERPILLAR, INC.	7,700	$635K	0.4%	$61.55	0.0%	Common Stock	149123101
CMI	CUMMINS INC.	5,800	$629K	0.3%	$81.53	0.0%	Common Stock	231021106
—	BANK OF AMERICA CORP	47,529	$611K	0.3%	$12.86	—	Common Stock	60505104
—	BANK OF NY MELLON CORP	21,421	$600K	0.3%	$28.01	—	Common Stock	64058100
—	CYTEC INDUSTRIES	8,100	$593K	0.3%	$73.21	—	Common Stock	232820100
COST	COSTCO	5,300	$586K	0.3%	$86.56	0.0%	Common Stock	22160K105
—	KRAFT FOODS INC	10,500	$586K	0.3%	$55.81	—	Common Stock	50075N104
LOW	LOWES COMPANIES	13,600	$556K	0.3%	$32.16	0.0%	Common Stock	548661107
HD	HOME DEPOT	6,600	$511K	0.3%	$56.05	0.0%	Common Stock	437076102
SYK	STRYKER CORPORATION	7,700	$498K	0.3%	$56.92	0.0%	Common Stock	863667101
MO	ALTRIA GROUP INC.	13,700	$479K	0.3%	$16.28	0.0%	Common Stock	02209S103
FLR	FLUOR CORP	8,000	$474K	0.3%	$53.56	0.0%	Common Stock	343412102
—	CLOVIS	7,000	$468K	0.3%	$66.86	—	Common Stock	189464100
FCX	FREEPORT-MCMORAN COPPER & GOLD, INC.	16,200	$447K	0.2%	$24.45	0.0%	Common Stock	35671D857
GLW	CORNING INC.	31,000	$441K	0.2%	$10.49	0.0%	Common Stock	219350105
—	ANADARKO PETROLEUM CORPORATION	5,100	$438K	0.2%	$85.88	—	Common Stock	3251110
A	AGILENT TECHNOLOGIES	9,500	$406K	0.2%	$27.97	0.0%	Common Stock	00846U101
MS	MORGAN STANLEY	16,075	$392K	0.2%	$17.33	0.0%	Common Stock	617446448
—	AIR PRODUCTS & CHEMICALS	4,250	$389K	0.2%	$91.53	—	Common Stock	9158106
CVS	CVS CAREMARK CORP.	6,000	$343K	0.2%	$41.44	0.0%	Common Stock	126650100
—	TIME WARNER INC.	5,800	$335K	0.2%	$57.76	—	Common Stock	887317105
—	D.E MASTER BLENDERS 1753 N.V.	20,000	$319K	0.2%	$15.95	—	Common Stock	AC1022F69
—	EMC CORPORATION	12,500	$295K	0.2%	$23.60	—	Common Stock	26864810
VWO	VANGUARD EMERGING MARKETS ETF	7,100	$275K	0.2%	$38.73	—	Common Stock	922042858
ETN	EATON CORP. PLC	4,000	$263K	0.1%	$46.59	0.0%	Common Stock	G29183103
TJX	TJX COMPANIES, INC.	5,200	$260K	0.1%	$20.82	0.0%	Common Stock	872540109
NSRGY	NESTLE S A SPONSORED ADR	3,900	$256K	0.1%	$65.64	—	Common Stock	641069406
EPP	ISHARES MCSI PACIFIC EX-JAPAN	5,250	$225K	0.1%	$42.86	—	Common Stock	464286665
—	APACHE CORP.	2,600	$217K	0.1%	$83.46	—	Common Stock	37411105
EPD	ENTERPRISE PROSUCTS PARTNERS L.P.	3,400	$211K	0.1%	$62.06	—	Common Stock	293792107
—	RESEARCH IN MOTION, LTD	10,600	$110K	0.1%	$10.38	—	Common Stock	760975102