Welcome to the Motley Fool Shop at FoolMart Daily Dow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

This Feature

Related Items

BTD 10
As Of 11/04/96

1. ATT
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %>

 2. International Paper
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %>

 3. General Motors
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %>

 4. Chevron Corp
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %>

 5. Minnesota Mining & Mfg
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %>

 6. J.P. Morgan
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %>

 7. Exxon
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %>

 8. Philip Morris
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %>

 9. Du Pont de Nemours & Co.
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DD)") else Response.Write("(NYSE:DD)") end if %>

 10. Texaco
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %>

 ***NOTE: FOOLISH FOUR
STOCKS ARE ITALICISED

Last Update: 11/04/96

The Daily Dow
Monday, November 4, 1996
by Robert Sheard (MF DowMan)

LEXINGTON, KY. (November 4): As I mentioned in Friday's report, don't blink or you'll miss the rankings changing. Caterpillar and International Paper flip-flopped again today, sending the rankings back where they were early last week. Is it the sign of a market top? Is it the demise of the Dow Approach as we know it? Do I have precious little news to report today so I'm making a big deal out of this? (Yep ... the last one.)

In using a double screen (first the dividend yield screen and then the share price screen), any changes around the tenth and eleventh spots on the first list (high yield) can make the rankings change dramatically. What was the number 1 or 2 Beating the Dow stock can suddenly be ejected from the list completely one day, and thrown back into the top group the next day. This shouldn't be a source of concern, though; it happens a couple of times a year as the relative yields fluctuate.

Keep in mind that this approach doesn't pretend to point to THE best stock or group of stocks each year. (If that were the case, we'd all be holding Woolworth this year and enjoying its 60% gains.) What it does do is play the long-term averages which show us that the highest yielding stocks among the 30 generally perform better than the entire field. And from among those highest yielding stocks, the ones with the lowest share prices tend to benefit a tad more because of the way volatility in a low-priced stock makes it easier to move when the hoped-for recovery occurs. (Compare a 50-cent move in a $20 stock versus a 50-cent move in an $80 stock to see the difference.)

So, what if you bought Caterpillar this morning? Should you turn around and sell it tomorrow and buy International Paper? Nope. Who's to say which of the two will perform better over the next 12 months? All you can do is buy the stocks in the current group on the day you're ready. Close your eyes to what happens over the following year and keep your focus down the road many years. This is not a short-term approach, but one that consistently out-performs the stock market (and the mutual funds industry) over decades. That's the kernel of Folly in a nutshell!


Today's Dow Numbers 
      THE FOOLISH FOUR MODEL (11/4/96)  

          Day    Week   Quarter  Year  History
Fool-4  -0.15%  -0.15%   4.59%  25.90%  25.90%
DJIA     0.33%   0.33%   2.71%  18.07%  18.07%
S&P 500  0.42%   0.42%   2.82%  14.74%  14.74%
NASDAQ  -0.11%  -0.11%  -0.52%  16.00%  16.00%


Bought  #    Stock     In At   Now   Change

1/2/96  142  DuPont    69.88  94.13  34.70%
1/2/96  380  Chevron   52.38  65.13  24.34%
1/2/96  149  3M        63.76  75.50  18.41%
1/2/96  148  E. Kodak  67.00  79.00  17.91%
7/16/96  14  Imation   26.16  26.63   1.79%

Bought  #    Stock  Cost  Value  Change

1/2/96  142  DuPont      $9,922.25  $13,365.75  $3,443.50    
1/2/96  380  Chevron    $19,902.50  $24,747.50  $4,845.00    
1/2/96  149  3M          $9,500.09  $11,249.50  $1,749.41    
1/2/96  148  E. Kodak    $9,916.00  $11,692.00  $1,776.00    
7/16/96  14  Imation       $366.21     $372.75      $6.54   

      CASH      $1,524.50      
      TOTAL    $62,952.00      





Transmitted: 11/4/96

      
      

      
      

       

<% end if end function %>
  home  | news  | specials  | strategies  | personal finance  | school  | help  

<% if request.querystring("source") = "yhoolnk" then referer = Request.ServerVariables("HTTP_REFERER") if referer = "" then referer = "http://finance.yahoo.com/" response.write "

<< Back to Yahoo!

" end if %> <% function YahooWelcome if gsCookieUsername = "" and request.querystring("source") = "yhoolnk" then %>

Welcome, Fool!
Be a Fool and get free, unlimited access to our site.

What we offer:
 • Take a tour
 • Daily News
 • Talk Stocks

© Copyright 1995-2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. The Motley Fool is a registered trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us