STATE FARM MUTUAL AUTOMOBILE INSURANCE CO
13F-E, 1998-02-25
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<PAGE>      PAGE   1                                                                                                              
                                                                                                                                  
                       SECURITIES AND EXCHANGE COMMISSION                                                                         
                                   FORM 13F-E                                                                                     
                                                                                                                                  
                                                                                                                                  
Report for the Calendar Year or Quarter Ended:    12/31/97                                                                        
                                                                                                                                  
                                                                                                                                  
Institutional Investment Manager:                                                                                                 
                                                                                                                                  
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY                                                                                    
ONE STATE FARM PLAZA                                                                                                              
BLOOMINGTON                                       IL            61710                                                             
                                                                                                                                  
                                                                                                                                  
  I REPRESENT THAT I AM AUTHORIZED TO SUBMIT THIS FORM AND THAT ALL INFORMATION                                                   
  IN THIS FORM AND THE ATTACHMENTS TO IT IS TRUE, CORRECT AND COMPLETE, AND I                                                     
  UNDERSTAND THAT ALL REQUIRED ITEMS, STATEMENTS AND SCHEDULES ARE INTEGRAL                                                       
  PARTS OF THIS FORM AND THAT THE SUBMISSION OF ANY AMENDMENT REPRESENTS THAT                                                     
  ALL UNAMENDED ITEMS, STATEMENTS AND SCHEDULES REMAIN TRUE, CORRECT AND                                                          
  COMPLETE AS PREVIOUSLY SUBMITTED.                                                                                               
  I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE ACT OF 1934.                                                    
                                                                                                                                  
                                                                                                                                  
Name, Title and Telephone Number of Person Submitting Report:                                                                     
                                                                                                                                  
    WILLIAM J. HESS                SR. ASST. INVEST. COUNSEL    309-766-2392                                                      
                                                                                                                                  
                                                                                                                                  
Signature, Place and Date of Signing:                                                                                             
                                                                                                                                  
/s/ WILLIAM J. HESS                BLOOMINGTON                  IL    02/12/98                                                    
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   2                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
SCANDINAVIAN BROADCASTING SYS  ORD              L8137H108    21793   889500 SH       SOLE                 889500                  
A D C TELECOMMUNICATIONS       COM              000886101   463020 11090296 SH       SOLE               11090296                  
AT&T CORP                      COM              001957109   467703  7628995 SH       SOLE                7628995                  
ATL ULTRASOUND INC             COM              00207N100    15453   335935 SH       SOLE                 335935                  
ABB AB                         SPONSORED ADR    00256Q103    37221   316100 SH       SOLE                 316100                  
ABBOTT LABS                    COM              002824100   387341  5913600 SH       SOLE                5913600                  
AGOURON PHARMACEUTICALS INC    COM              008488108    14688   500000 SH       SOLE                 500000                  
AIR PRODS & CHEMS INC          COM              009158106   600326  7298800 SH       SOLE                7298800                  
AIRTOUCH COMMUNICATIONS INC    COM              00949T100   234926  5652348 SH       SOLE                5652348                  
ALLEGIANCE CORP                COM              017475104    45096  1272578 SH       SOLE                1272578                  
ALLERGAN INC                   COM              018490102   132377  3944200 SH       SOLE                3944200                  
AMERITECH CORP NEW             COM              030954101   358227  4450020 SH       SOLE                4450020                  
AMGEN INC                      COM              031162100    30039   555000 SH       SOLE                 555000                  
AMOCO CORP                     COM              031905102   258076  3031728 SH       SOLE                3031728                  
AMSOUTH BANCORPORATION         COM              032165102   138000  2540850 SH       SOLE                2540850                  
APTARGROUP INC                 COM              038336103    55309   996566 SH       SOLE                 996566                  
ARCHER DANIELS MIDLAND CO      COM              039483102   919831 42412933 SH       SOLE               42412933                  
ATLANTIC RICHFIELD CO          COM              048825103   160251  2000000 SH       SOLE                2000000                  
BRE PROPERTIES INC             CL A             05564E106    99410  3518958 SH       SOLE                3518958                  
BALLARD MED PRODS              COM              058566100    24656  1016751 SH       SOLE                1016751                  
BANC ONE CORP                  COM              059438101   278907  5135247 SH       SOLE                5135247                  
BANKAMERICA CORP               COM              066050105    32660   447400 SH       SOLE                 447400                  
BARRETT RES CORP               COM PAR $0.01    068480201    75436  2493733 SH       SOLE                2493733                  
BATTLE MTN GOLD CO             COM              071593107    20500  3565350 SH       SOLE                3565350                  
BATTLE MTN GOLD CO             PFD CONV $3.25   071593305     2250    50000 SH       SOLE                  50000                  
BAXTER INTL INC                COM              071813109   320928  6362897 SH       SOLE                6362897                  
BELL ATLANTIC CORP             COM              077853109   259350  2850000 SH       SOLE                2850000                  
BELLSOUTH CORP                 COM              079860102    41897   744000 SH       SOLE                 744000                  
BETZDEARBORN INC               COM              087779104    30531   500000 SH       SOLE                 500000                  
BIOMET INC                     COM              090613100   162002  6322000 SH       SOLE                6322000                  
BOSTON SCIENTIFIC CORP         COM              101137107    50540  1101688 SH       SOLE                1101688                  
BROKEN HILL PROPRIETARY LTD    SPONSORED ADR    112169602    35755  1932700 SH       SOLE                1932700                  
BROWN TOM INC                  COM NEW          115660201    50435  2620000 SH       SOLE                2620000                  
CMS ENERGY CORP                COM              125896100    13219   300000 SH       SOLE                 300000                  
CABLE & WIRELESS PUB LTD CO    SPONSORED ADR    126830207    13080   481100 SH       SOLE                 481100                  
CAMPBELL SOUP CO               COM              134429109   297950  5126000 SH       SOLE                5126000                  
CANWEST GLOBAL COMMUNICATIONS  SHS NON VTG      138906300    28814  1600800 SH       SOLE                1600800                  
CARDIOTHORACIC SYS INC         COM              141907105     1898   345000 SH       SOLE                 345000                  
CATERPILLAR INC DEL            COM              149123101   373941  7709400 SH       SOLE                7709400                  
CENTRAL & SOUTH WEST CORP      COM              152357109   128737  4757000 SH       SOLE                4757000                  
CENTRAL LA ELEC INC            COM NEW          153897608    31067   959600 SH       SOLE                 959600                  
CHECKPOINT SYS INC             COM              162825103    10500   600000 SH       SOLE                 600000                  
CHEVRON CORPORATION            COM              166751107   558311  7250800 SH       SOLE                7250800                  
CHIRON CORP                    COM              170040109    41401  2435328 SH       SOLE                2435328                  
CISCO SYS INC                  COM              17275R102    19200   344400 SH       SOLE                 344400                  
CLINTRIALS RESEARCH INC        COM              188767107     1772   225000 SH       SOLE                 225000                  
COCA COLA CO                   COM              191216100   341693  5124000 SH       SOLE                5124000                  
COEUR D ALENE MINES CORP IDAHO COM              192108108     2172   242970 SH       SOLE                 242970                  
COLGATE PALMOLIVE CO           COM              194162103    43762   595400 SH       SOLE                 595400                  
COMPAQ COMPUTER CORP           COM              204493100    21753   385000 SH       SOLE                 385000                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   3                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
CONSOLIDATED PAPERS INC        COM              209759109    10675   200000 SH       SOLE                 200000                  
CORNING INC                    COM              219350105   363979  9804100 SH       SOLE                9804100                  
COVANCE INC                    COM              222816100    48714  2451025 SH       SOLE                2451025                  
CYPRUS AMAX MINERALS CO        COM              232809103     1732   112628 SH       SOLE                 112628                  
DEERE & CO                     COM              244199105    17475   300000 SH       SOLE                 300000                  
DELTA & PINE LD CO             COM              247357106    17351   568886 SH       SOLE                 568886                  
DELTA AIR LINES INC DEL        COM              247361108   102233   859100 SH       SOLE                 859100                  
DEUTSCH TELEKOM AG             SPONSORED ADR    251566105    16610   891800 SH       SOLE                 891800                  
DIEBOLD INC                    COM              253651103    28076   554600 SH       SOLE                 554600                  
DISNEY WALT CO                 COM              254687106  1233379 12457561 SH       SOLE               12457561                  
DONALDSON INC                  COM              257651109    34101   756750 SH       SOLE                 756750                  
DONNELLEY R R & SONS CO        COM              257867101   103324  2773800 SH       SOLE                2773800                  
DOW CHEM CO                    COM              260543103   201885  1989000 SH       SOLE                1989000                  
DU PONT E I DE NEMOURS & CO    COM              263534109    47533   791400 SH       SOLE                 791400                  
DUKE ENERGY CORP               COM              264399106   248911  4495000 SH       SOLE                4495000                  
ELCOR CORP                     COM              284443108    18000   750000 SH       SOLE                 750000                  
ELECTRONIC DATA SYS NEW        COM              285661104    61860  1407900 SH       SOLE                1407900                  
EMERSON ELEC CO                COM              291011104   137743  2440620 SH       SOLE                2440620                  
ENERGY GROUP PLC               SPONSORED ADR    292691102    26738   600000 SH       SOLE                 600000                  
ENGELHARD CORP                 COM              292845104   168031  9670893 SH       SOLE                9670893                  
EQUITABLE RES INC              COM              294549100    54519  1541150 SH       SOLE                1541150                  
ERICSSON L M TEL CO            ADR CL B SEK10   294821400   226199  6062300 SH       SOLE                6062300                  
EXXON CORP                     COM              302290101   769734 12579900 SH       SOLE               12579900                  
FPL GROUP INC                  COM              302571104    55672   940600 SH       SOLE                 940600                  
FASTENAL CO                    COM              311900104    11284   295000 SH       SOLE                 295000                  
FIFTH THIRD BANCORP            COM              316773100    17474   213750 SH       SOLE                 213750                  
FINOVA GROUP INC               COM              317928109    13038   262400 SH       SOLE                 262400                  
FIRST CHICAGO NBD CORP         COM              31945A100   289211  3463601 SH       SOLE                3463601                  
FIRST EMPIRE ST CORP           COM              320076102   142151   305700 SH       SOLE                 305700                  
FIRST SEC CORP DEL             COM              336294103    48409  1156050 SH       SOLE                1156050                  
FIRST VA BANKS INC             COM              337477103    57063  1104000 SH       SOLE                1104000                  
GATX CORP                      COM              361448103   213718  2945300 SH       SOLE                2945300                  
GTE CORP                       COM              362320103    21966   420400 SH       SOLE                 420400                  
GENERAL ELEC CO                COM              369604103   612062  8341568 SH       SOLE                8341568                  
GILLETTE CO                    COM              375766102   209914  2090000 SH       SOLE                2090000                  
GOLDEN WEST FINL CORP DEL      COM              381317106   198109  2025400 SH       SOLE                2025400                  
GRANITE BROADCASTING CORP      COM              387241102      155    17081 SH       SOLE                  17081                  
GREAT LAKES CHEM CORP          COM              390568103   182263  4081300 SH       SOLE                4081300                  
HEILIG MEYERS CO               COM              422893107    33570  2797493 SH       SOLE                2797493                  
HELMERICH & PAYNE INC          COM              423452101   140114  2064300 SH       SOLE                2064300                  
HEWLETT PACKARD CO             COM              428236103  1167938 18720000 SH       SOLE               18720000                  
HON INDS INC                   COM              438092108   170133  2883600 SH       SOLE                2883600                  
HUMAN GENOME SCIENCES INC      COM              444903108     3975   100000 SH       SOLE                 100000                  
IDAHO POWER CO                 COM              451380109    53006  1408800 SH       SOLE                1408800                  
ILLINOIS SUPERCONDUCTOR CORP   COM              452284102      408   225000 SH       SOLE                 225000                  
ILLINOIS TOOL WKS INC          COM              452308109   585576  9739300 SH       SOLE                9739300                  
IMATION CORP                   COM              45245A107     7444   465200 SH       SOLE                 465200                  
IMMUNE RESPONSE CORP DEL       COM              45252T106     9878   887872 SH       SOLE                 887872                  
INGERSOLL RAND CO              COM              456866102    21269   525150 SH       SOLE                 525150                  
INTEL CORP                     COM              458140100   982474 13985400 SH       SOLE               13985400                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   4                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
INTERNATIONAL BUSINESS MACHS   COM              459200101   804585  7690396 SH       SOLE                7690396                  
INTERNATIONAL FLAVORS&FRAGRANC COM              459506101   325382  6318100 SH       SOLE                6318100                  
INTUIT                         COM              461202103    18794   455600 SH       SOLE                 455600                  
JOHNSON & JOHNSON              COM              478160104  1123274 17051600 SH       SOLE               17051600                  
JOSTENS INC                    COM              481088102    31533  1367298 SH       SOLE                1367298                  
KN ENERGY INC                  COM              482620101   103678  1919965 SH       SOLE                1919965                  
KELLOGG CO                     COM              487836108   460024  9270000 SH       SOLE                9270000                  
KIMBERLY CLARK CORP            COM              494368103    59176  1200000 SH       SOLE                1200000                  
KIMCO REALTY CORP              COM              49446R109    14981   425000 SH       SOLE                 425000                  
KUBOTA CORP                    ADR              501173207     1253    23200 SH       SOLE                  23200                  
LATTICE SEMICONDUCTOR CORP     COM              518415104    76984  1625000 SH       SOLE                1625000                  
LEE ENTERPRISES INC            COM              523768109     6634   224400 SH       SOLE                 224400                  
LEGGETT & PLATT INC            COM              524660107     8375   200000 SH       SOLE                 200000                  
LIFE TECHNOLOGIES INC          COM              532177201     9796   294610 SH       SOLE                 294610                  
LILLY ELI & CO                 COM              532457108  1280209 18387200 SH       SOLE               18387200                  
LINEAR TECHNOLOGY CORP         COM              535678106   199751  3466400 SH       SOLE                3466400                  
LOUISIANA PAC CORP             COM              546347105    44393  2336454 SH       SOLE                2336454                  
LUCENT TECHNOLOGIES INC        COM              549463107   197486  2472432 SH       SOLE                2472432                  
MBNA CORP                      COM              55262L100   266497  9757350 SH       SOLE                9757350                  
MCI COMMUNICATIONS CORP        COM              552673105   448632 10479000 SH       SOLE               10479000                  
MANPOWER INC                   COM              56418H100   217140  6160000 SH       SOLE                6160000                  
MCCORMICK & CO INC             COM NON VTG      579780206   113680  4060000 SH       SOLE                4060000                  
MCDONALDS CORP                 COM              580135101    98514  2063100 SH       SOLE                2063100                  
MEDTRONIC INC                  COM              585055106    87023  1657800 SH       SOLE                1657800                  
MERCK & CO INC                 COM              589331107   745247  7030000 SH       SOLE                7030000                  
MICROSOFT CORP                 COM              594918104    91587   708600 SH       SOLE                 708600                  
MICROFIELD GRAPHICS INC        COM              59506W104      795   410348 SH       SOLE                 410348                  
MINERALS TECHNOLOGIES INC      COM              603158106    26332   579525 SH       SOLE                 579525                  
MINNESOTA MNG & MFG CO         COM              604059105   402672  4906900 SH       SOLE                4906900                  
MORGAN J P & CO INC            COM              616880100   241845  2142600 SH       SOLE                2142600                  
MOTOROLA INC                   COM              620076109   261470  4573000 SH       SOLE                4573000                  
NCR CORP NEW                   COM              62886E108    13261   476811 SH       SOLE                 476811                  
NEWHALL LAND & FARMING CO CAL  DEPOSITARY REC   651426108   102023  3400758 SH       SOLE                3400758                  
NEWMONT MINING CORP            COM              651639106    59959  2041141 SH       SOLE                2041141                  
NORTHERN TELECOM LTD           COM              665815106   175551  1978042 SH       SOLE                1978042                  
NORTHERN TR CORP               COM              665859104    49641   711700 SH       SOLE                 711700                  
NORWEST CORP                   COM              669380107   426046 10997600 SH       SOLE               10997600                  
NUCOR CORP                     COM              670346105   344826  7137400 SH       SOLE                7137400                  
ORACLE CORP                    COM              68389X105     5255   235500 SH       SOLE                 235500                  
OSMONICS INC                   COM              688350107    15290   966937 SH       SOLE                 966937                  
PNC BK CORP                    COM              693475105   320843  5635000 SH       SOLE                5635000                  
PACIFIC CENTY FINL CORP        COM              694058108   100858  4075078 SH       SOLE                4075078                  
PACIFICORP                     COM              695114108   148087  5421908 SH       SOLE                5421908                  
PALL CORP                      COM              696429307    99067  4788700 SH       SOLE                4788700                  
PENFORD CORP                   COM              707051108     2725    77850 SH       SOLE                  77850                  
PENNZOIL CO                    COM              709903108   230127  3444372 SH       SOLE                3444372                  
PHARMACIA & UPJOHN INC         COM              716941109    63728  1740000 SH       SOLE                1740000                  
PFIZER INC                     COM              717081103  1847271 24774800 SH       SOLE               24774800                  
PIONEER HI BRED INTL INC       COM              723686101   328775  3065500 SH       SOLE                3065500                  
PITTWAY CORP DEL               COM              725790109     3950    57300 SH       SOLE                  57300                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   5                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
PITTWAY CORP DEL               CL A             725790208    54283   779649 SH       SOLE                 779649                  
POGO PRODUCING CO              COM              730448107   162842  5520077 SH       SOLE                5520077                  
POLAROID CORP                  COM              731095105    71101  1460362 SH       SOLE                1460362                  
POPULAR INC                    COM              733174106   137073  2769150 SH       SOLE                2769150                  
PRECISION CASTPARTS CORP       COM              740189105    92344  1531100 SH       SOLE                1531100                  
PROCTER & GAMBLE CO            COM              742718109    48254   604600 SH       SOLE                 604600                  
QUEST DIAGNOSTICS INC          COM              74834L100    20681  1225512 SH       SOLE                1225512                  
RAYCHEM CORP DEL               COM              754603108   229842  5337400 SH       SOLE                5337400                  
REUTERS HOLDING PLC            ADR B            761324201   275521  4158800 SH       SOLE                4158800                  
RHEOMETRICS SCIENTIFIC INC     COM              762073104      224   239048 SH       SOLE                 239048                  
POPULAR INC                    COM              766174106     7449   150492 SH       SOLE                 150492                  
RIO ALGOM LTD                  COM              766889109    29611  1741800 SH       SOLE                1741800                  
RIO TINTO PLC                  SPONSORED ADR    767204100   117351  2267655 SH       SOLE                2267655                  
ROGERS CORP                    COM              775133101    16350   400000 SH       SOLE                 400000                  
ROYAL DUTCH PETE CO            NY REG GLD1.25   780257804    52996   978000 SH       SOLE                 978000                  
RUBBERMAID INC                 COM              781088109   247260  9890400 SH       SOLE                9890400                  
SBC COMMUNICATIONS INC         COM              78387G103   513183  7005915 SH       SOLE                7005915                  
ST JOE CORP                    COM              790148100    38110   421100 SH       SOLE                 421100                  
SARA LEE CORP                  COM              803111103   169748  3014400 SH       SOLE                3014400                  
SEQUENT COMPUTER SYS INC       COM              817338106     4985   249250 SH       SOLE                 249250                  
SIGMA ALDRICH CORP             COM              826552101   278644  7009880 SH       SOLE                7009880                  
SMITHKLINE BEECHAM PLC         ADR REP ORD      832378301   102875  2000000 SH       SOLE                2000000                  
SOUTHERN CO                    COM              842587107    80696  3118700 SH       SOLE                3118700                  
SOUTHTRUST CORP                COM              844730101   281487  4437225 SH       SOLE                4437225                  
SOUTHWESTERN ENERGY CO         COM              845467109    12875  1000000 SH       SOLE                1000000                  
SPRINT CORP                    COM              852061100    87938  1500000 SH       SOLE                1500000                  
STAR TECHNOLOGIES INC          COM              855193108      786   967334 SH       SOLE                 967334                  
STEEL DYNAMICS INC             COM              858119100     7256   453500 SH       SOLE                 453500                  
STERICYCLE INC                 COM              858912108    13711   937522 SH       SOLE                 937522                  
SUNTRUST BKS INC               COM              867914103   428892  6009000 SH       SOLE                6009000                  
SYSCO CORP                     COM              871829107    26258   576300 SH       SOLE                 576300                  
TCF FINL CORP                  COM              872275102    21394   630400 SH       SOLE                 630400                  
TECO ENERGY INC                COM              872375100   115219  4096700 SH       SOLE                4096700                  
TMBR/SHARP DRILLING INC        COM              87257P101     3650   200000 SH       SOLE                 200000                  
TECUMSEH PRODS CO              CL B             878895101     5147   105300 SH       SOLE                 105300                  
TECUMSEH PRODS CO              CL A             878895200    15400   315900 SH       SOLE                 315900                  
TELEFONOS DE MEXICO S A        SP ADR REP ORD   879403780    15978   285000 SH       SOLE                 285000                  
TEMPLE INLAND INC              COM              879868107    55886  1068316 SH       SOLE                1068316                  
TENNANT CO                     COM              880345103    15205   418000 SH       SOLE                 418000                  
TEXAS UTILS CO                 COM              882848104   221846  5345466 SH       SOLE                5345466                  
360 COMMUNICATIONS CO          COM              885571109    10094   500000 SH       SOLE                 500000                  
US BANCORP DEL                 COM              902973106    47403   423478 SH       SOLE                 423478                  
UNILEVER N V                   NEW YORK SHS     904784501    37038   593200 SH       SOLE                 593200                  
VWR SCIENTIFIC PRODS CORP      COM              918435108     2932   103800 SH       SOLE                 103800                  
VALLEY NATL BANCORP            COM              919794107    22040   560640 SH       SOLE                 560640                  
VENTANA MED SYS INC            COM              92276H106    12403   813280 SH       SOLE                 813280                  
VIKING OFFICE PRODS            COM              926913104    31806  1458172 SH       SOLE                1458172                  
VULCAN MATLS CO                COM              929160109   334725  3277600 SH       SOLE                3277600                  
WACHOVIA CORP                  COM              929771103   430939  5312032 SH       SOLE                5312032                  
WAL MART STORES INC            COM              931142103   174321  4420200 SH       SOLE                4420200                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
                                                                                                                                  
<PAGE>      PAGE   6                                                                                                              
                                                           VALUE    SHARES/ SH/ PUT/ INVSTMT            -----VOTING AUTHORITY-----
NAME OF ISSUER                 -TITLE OF CLASS- --CUSIP-- (x$1000)  PRN AMT PRN CALL DSCRETN -MANAGERS-      SOLE   SHARED    NONE
                                                                                                                                  
WASHINGTON FED INC             COM              938824109    37894  1205380 SH       SOLE                1205380                  
WATSON PHARMACEUTICALS INC     COM              942683103    21409   660000 SH       SOLE                 660000                  
WELLS FARGO & CO DEL           COM              949740104   599659  1766624 SH       SOLE                1766624                  
WESTCORP INC                   COM              957907108    20544  1217445 SH       SOLE                1217445                  
WESTVACO CORP                  COM              961548104    53018  1686450 SH       SOLE                1686450                  
WILMINGTON TRUST CORP          COM              971807102    15407   247000 SH       SOLE                 247000                  
WISCONSIN ENERGY CORP          COM              976657106    52483  1825500 SH       SOLE                1825500                  
WORLDCOM INC GA                COM              98155K102    34939  1155000 SH       SOLE                1155000                  
REPORT SUMMARY                208 DATA RECORDS            35065710            0 OTHER MANAGERS ON WHOSE BEHALF REPORT IS FILED    
</TABLE>


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