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Strategies & Market Trends : Beating the Dow funds?

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To: sea_biscuit who wrote (36)3/7/1997 7:42:00 PM
From: Stingray   of 47
 
Another thing I've been thinking about is the different variations
of Beating the Dow. I really don't like the Motley Fool's variant
where they double up on the #2 stock and don't put any money in
the #1 on the list. I figure that 40% in one stock is not a good
allocation, also you are increasing the churn, especially if #1 and
#2 change positions.

This isn't working too well in practice either in the MF portfolio
because they ended up with AT+T as their largest holding. The stock
price has fallen, moved into the number 1 spot and if the adjustment
date comes around they will have to sell all of their AT+T at a
loss and buy an equal amount of International Paper. Do you know
when they make the adjustment?
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