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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (20916)6/26/1998 8:37:00 PM
From: Teri Skogerboe  Read Replies (2) | Respond to of 70976
 
Gottfried, **Off-Topic**

I like the "dogs of the Dow" idea. And it would be a heck of a lot easier than cyclical growth companies, yes? I wonder if anyone else (on our happy thread -g-) likes the idea.

Sniff, (you're so funny)
Teri



To: Gottfried who wrote (20916)6/26/1998 9:16:00 PM
From: Big Bucks  Read Replies (2) | Respond to of 70976
 
GM,
A friend of mine who is taking some additional college courses in
economics and business told me of a strategy whereby an investor
buys the 5 lowest and 10 lowest Dow 30 stocks each year. This strategy must be done every year so the turn-over is on an annual
basis. According to the information he discussed with me these stocks
tend to outperform the rest of the Dow 30 stocks by >2x. Apparently, these stocks have the highest upside price gain potential relative to the higher priced stocks of the DOW.

FWIW,
BB



To: Gottfried who wrote (20916)6/26/1998 11:21:00 PM
From: Ian@SI  Respond to of 70976
 
Gottfried, <***OT re Dow Dogs OT***>

One of the most informative sites for Dogs of the Dow is at fool.com

Robert Sheard does a daily column called the Daily Dow. In that section of the Motley Fool, is an extensive archive of past columns as well as URLs linking to data and performance stats and other info pertaining to variations of the "Dogs".

1 Question: Why buy a fund rather than just buying the stocks directly? Unless you're considering an amount that would make the commissions overwhelming as a %age of total investment, I don't see the benefit of paying a fund manager a variety of fees to add no value.

A couple clarifications. The original Dogs of the Dow was simply buying the 10 Highest Yielding Dow Stocks. Several variations have been back tested to that scheme. 1 of the more popular is to sort the 10 high yielders according to price and buy the 5 lowest priced of those high yielders. That improves the return substantially.

You seem to have missed another good site in your search: Look for Mark Pankin. If you can't find it on the web, ask and I'll get you a URL. He has done more research into other variations and has generally informative info re Dow Dog strategies.

IMO, there's no time like now to get started. I watched the Dow 30 for about a year after reading O'Higgins book before my first purchase
- T at about 35. I've since added 7 other Dow Dogs as they entered the 5 lowest priced of the High yielders. I'm quite satisfied with the performance and the steady dividend cheques. :-)

Best wishes,
Ian.



To: Gottfried who wrote (20916)6/27/1998 12:45:00 PM
From: Sid Stuart  Respond to of 70976
 
***ot***
BTW, I'm considering putting a small amount in a "dogs of the DOW" fund. Outperforms the DOW over time and you always know which stocks the fund is holding.

Gottfried


I looked at a prospectus for Schwab's dogs of the Dow fund. I have two problems with it. First, they the buy the top ten dogs. The analysis by the Motley Fool folks show that you get a better return buying the top four. Second, why pay someone a fee to do something that is so easy? Just go to www.fool.com, look at the foolish four link and invest in the four stocks with a * by them. Then, every twelve months (for IRA) or eighteen months (for brokerage) sell the four you have and buy the current top four.

Sid