Beating The Dow Revised Edition: A High-Return, Low-Risk Method for Investing in the Dow Jones Industrial Stocks with as Little as $5,000 Paperback – March 22 2000
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- Publisher : Harper Business; Revised, Subsequent edition (March 22 2000)
- Language : English
- Paperback : 320 pages
- ISBN-10 : 0066620473
- ISBN-13 : 978-0066620473
- Item weight : 281 g
- Dimensions : 13.49 x 1.85 x 20.32 cm
- Best Sellers Rank: #571,412 in Books (See Top 100 in Books)
- Customer Reviews:
About the Author
Michael B. O'Higgins, ranked in the top 1% of all money managers in the United States, runs O'Higgins Asset Management, Inc. in Miami, Florida. He is also the author of Beating the Dow with Bonds.
John Downes is coauthor of the bestselling Dictionary of Finance and Investment Terms and The Barron's Finance and Investment Handbook. He lives in Piermont, New York.
From the Publisher
At HarperCollins, authors and their work are at the center of everything we do. We are proud to provide our authors with unprecedented editorial excellence, marketing reach, long-standing connections with booksellers, and insight into reader and consumer behavior. Consistently at the forefront of innovation and technological advancement, HarperCollins also uses digital technology to create unique reading experiences and expand the reach of our authors.
HarperCollins was founded by brothers James and John Harper in New York City in 1817 as J. and J. Harper, later Harper & Brothers. In 1987, as Harper & Row, it was acquired by News Corporation. The worldwide book group was formed following News Corporation's 1990 acquisition of the British publisher William Collins & Sons. Founded in 1819, William Collins & Sons published a range of Bibles, atlases, dictionaries, and reissued classics, expanding over the years to include legendary authors such as H. G. Wells, Agatha Christie, J. R. R. Tolkien, and C. S. Lewis.
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Top reviews from Canada
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While I tend to be skeptical of any investment strategy that is too simple, if you must use such a simple strategy, then you could do far worse selecting the highest dividend paying stocks from the Dow. Of course, the other option is just to index your money in a mutual fund that buys the entire stock market. Vanguard Funds is the leader in such index funds. But, I like dividends.
The difficulty with simple investment strategies is that they tend to be arrived at via data mining. The proponent of the investment method asks "What worked in the past?" and then tries to draw up a canned investment method. Almost always, the proposed method then starts to lag behind in the present and future stock market performance. (the recent performance of this strategy is discussed in another person's great book review. See that.) This is not due to market efficiency or that the method is becoming well known. It just means that the method wasn't entirely valid as a predictive method.
There is the old joke about the "X investment strategy." When a computer was asked to vigorously evaluate the stock market and look for predictors of future investment success, the computer spit back the answer, "Invest in stocks whose name begins with an 'X' and whose name ends with an 'X.' " Xerox was the top performing stock over the period.
"Beating The Dow" is one of those books, if read all by itself, might mislead a new investor into an over-simplified investment strategy. Yet, you might enjoy reading it. And, as stated, you could do worse than holding the ten highest dividend-paying Dow stocks.
"Beating The Dow" also mentions what Michael O'Higgins calls the "Penulatimate Profit Prospect (PPP)" which involves buying just one stock. The Stock with the second lowest price among the ten highest yielding stocks. I consider that Penidiotic. We conservative investors do love our stock dividends, and the focus on dividend yield gets "Beating The Dow" a solid honorable mention.
Peter Hupalo, Author of "Becoming An Investor: Building Wealth By Investing In Stocks, Bonds, And Mutual Funds."
This book as the name says is all about investing in Dow companies, the giants of the US and global economy. The companies which I truly believe that world could come to an end but GE would still be there. The book covers all the Dow components individually along with their historical financial performance, weaknesses, strenghts and their power to stay in business by being profitable over years and years. There are many different 'low risk' investment strategies covered in this book such as 'High Yielding 5'. These are the 5 Dow stock that you pick annually based on the criteria described, HOLD it for 1 year, redo the math (barely any)and pick your 5 stocks again. You also sell some at this point that didn;t meet your criteria and pick the new ones to fill their spot.
Sounds simple, yes! and that's the way it should be. Not only you can ride out the swings of the stock market in this way but also save a ton on commisions, taxes and most importantly be less stressed.
If you read the Motley Fool, you'll notice some of their strategies are derived from O'Higgin's methods.
A must read for all investors, specially younger people like myself who want to start building the nest yesterday!
Top reviews from other countries
I am a retired rocket scientist and I understand complexity. This method is not rocket science. Buy the book. Live long and prosper.
The biggest thing I got out of this book was the direction to read books by Yale Hirsh. This was very profitable for me to discover the November-May stock market pattern, the presidential election cycle and the days of the week. You must read The Almanac Investor(by his son), it is VERY valuable, I made $10,000 from Sept 1st 2006 to Dec 9th 2006 due to my aggressive stance in November and December.