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Author: Baxter123 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 82  
Subject: 2-2-3-4-5 Date: 9/1/2008 10:22 PM
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I was reading The Motley Fool's Guide to Investing and they talked about the 2-2-3-4-5, and the DOW's bottom five. I was wondering if anyone could explain this to me in greater depth and how much would be a good amount to invest in this way. Please keep in mind that I am new to investing with limited amount of money to invest. I probably only have around $1000 for a beginning investment, but I will be adding more in the next couple of months/years.
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Author: StealthFisher Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70 of 82
Subject: Re: 2-2-3-4-5 Date: 9/1/2008 10:37 PM
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I haven't read the book in years, but if you're talking about the "Foolish Four" and all that went with it, the Motley Fool abandoned that years ago. If I'm not mistaken, it was back tested and found that it didn't work in all markets. Again, you may not be talking about that practice...you may want to wait for a reply from someone that has read the book recently...just my 2 cents.

J.P.

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Author: Baxter123 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 71 of 82
Subject: Re: 2-2-3-4-5 Date: 9/2/2008 1:20 AM
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I was talking about the Dow Dividend where one takes the bottom five companies on the DOW, throws out the bottom company and invests with these four hoping that they will produce around 20% over the next 20 years according to the book. I don't know if this is what you were talking about that didn't work after being back tested.

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Author: StealthFisher Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 72 of 82
Subject: Re: 2-2-3-4-5 Date: 9/2/2008 2:22 AM
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I was talking about the Dow Dividend where one takes the bottom five companies on the DOW, throws out the bottom company and invests with these four hoping that they will produce around 20% over the next 20 years according to the book.

If you haven't read it yet, they drop the fifth stock and double up on the fourth. They call it the "Foolish Four" approach.

I don't know if this is what you were talking about that didn't work after being back tested.

This is exactly what I'm talking about...they no longer follow this strategy. It doesn't work as advertised.

J.P.

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Author: Baxter123 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 73 of 82
Subject: Re: 2-2-3-4-5 Date: 9/2/2008 5:04 PM
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Is there another Strategy that is being used in replacement of the Foolish Four?

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Author: StealthFisher Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74 of 82
Subject: Re: 2-2-3-4-5 Date: 9/2/2008 11:54 PM
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Is there another Strategy that is being used in replacement of the Foolish Four?

These days TMF is touting their news letters. I don't know if they are supporting any certain investment strategy in those news letters as I am not a subscriber. What I do know is that there are a number of message boards that deal with different investement strategies.


http://boards.fool.com/boards.asp?fid=10100


Some of these boards, the CANSLIM and Peter Lynch Investing boards are based on books by authors other than those here at the Fool. Others, Mechanical Investing and Day Trading-The Devils Den are started by Fool members.

Most boards have a frequently asked questions just to the right the post you're reading on that board.

The 13 steps is a good place to start if you're new at this.

http://www.fool.com/investing/beginning/what-does-it-take-to...


Hope this helps, J.P.

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