The start of the year brings new companies into focus for investors, particularly those that had a poor showing in the prior year. There are a few different ways to classify these opportunities, but most are based on being a “dog” of some sort. Originally, the strategy was to buy the five highest-yielding companies in the Dow Index—hence the name Dogs of the Dow. But there are variations, like using 10 names, or using the S&P 500 index, or sorting by other means. One of those means should...
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The start of the year brings new companies into focus for investors, particularly those that had a poor showing in the prior year. There are a few different ways to classify these opportunities, but most are based on being a “dog” of some sort. Originally, the strategy was to buy the five highest-yielding companies in the Dow Index—hence the name Dogs of the Dow. But there are variations, like using 10 names, or using the S&P 500 index, or sorting by other means. One of those means should...
For the Best Investments, Look Forward, Not Backward
Trading Tips
8 minutes
6 years ago
For the Best Investments, Look Forward, Not Backward
Hindsight is 2020. While it’s easy to look back on a great trade that you passed up, investors make a much more common mistake. They tend to use recent trends and extrapolate them out forever. The problem with that strategy is that investment looks like the best opportunity after it’s already had a great run. Early investors already made their money. And no company can always be on the growth path. There will be times to change course and even restructure, sell, or close a business. Inves...
Trading Tips
The start of the year brings new companies into focus for investors, particularly those that had a poor showing in the prior year. There are a few different ways to classify these opportunities, but most are based on being a “dog” of some sort. Originally, the strategy was to buy the five highest-yielding companies in the Dow Index—hence the name Dogs of the Dow. But there are variations, like using 10 names, or using the S&P 500 index, or sorting by other means. One of those means should...
