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JUST FOR FUN AND MONEY
TOP DOGS OF THE DOW
Top Dogs Of The DOW
Performance
Here are the amazing results of a very simple strategy detailed
in the book, Buffett and Beyond. It is simply a buy and hold
strategy where you choose the 8 stocks from the Dow 30 with the highest Clean
Surplus Return
on Equity at the beginning of the year and hold them for the entire year.
The first chart below shows that
owning the Top 8 most efficiently operated companies in the Dow returned on
average 14.2% per year VS the Dow average return of 8.9% per year over the past
24 years.
14.2% - 8.9% divided by 8.9% is an extra return of almost 60% per year
just by investing in the 8 most efficient stocks in the Dow and holding for one
full year.
Under the chart below, you will see another chart of the growth of
$100,000 invested in the Top Dogs relative to the growth of $100,000 invested in
the Dow 30 index. I think the difference between $1,740,748 and
$745,736 over 24 years is worth talking about. That's a difference of
133%.
Please remember the Return On Equity (ROE) used in the
Buffett and Beyond
method is not, repeat not, the same traditional accounting ROE you hear about every day. The ROE
we use is configured by the use of Clean Surplus. Clean Surplus is
described in the book, Buffett and Beyond and the course for both CPAs
and professionals coming out within the next few months.
Meanwhile, see for yourselves the amazing results of owning
the most efficiently operated blue chip companies in the Dow Jones Industrial
Average.


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