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Investment Analysis Clubs / The BMW Method

URL:  http://boards.fool.com/quotdividend-adjusted-prices-take-all-this-into-25278613.aspx

Subject:  Re: Charts -- with Yahoo data Date:  3/13/2007  7:37 AM
Author:  BuildMWell Number:  21896 of 42233

"Dividend-adjusted prices take all this into account. This is a good thing." - SubGuy

I originally wanted the data without dividend adjustment because the DOW 30 and S&P 500 indexes did not include dividends. I was attempting to use the DOW and S&P history to show the way we can use the long-term historical index data guide us in selecting individual stocks.

The other reason was that I was using the BigCharts site for my hand-drawn charts. They use the unadjusted data.

I like the Yahoo data too. It is important for us to keep track of the data source and to understand how the dividend adjustment affects the picture. Right now, I have no idea how much the picture may change using Yahoo. I like the idea of correcting for spin-offs and dividends because that gives an apples to apples view of one stock versus another.

There is just no "best way" to do this. But, the BMW Method should not care because the math stays the same no matter what data we use.
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