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I have read the proposition that if beating the S&P 500 is the objective, buying and holding the ten highest yielding Dow companies, adjusting any sliders, will save time, risk and commissions?
Is this true and how would a new fool go about checking this out foolishly?
Reading some recent archives, some good stuff back there, I came across and want be able to check some outrageous performance claims for a couple of well known mutual funds, the Janus twenty & Fildelity blue chip growth. The claim is that the 98 returns have been 74% & 34% respectivly. Can this be true? Where can I go to check these results myself?

crazy8
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Check out www.morningstar.com for the history of these mutual funds.

There is a board called Dow Investing/Foolish Four which can give you some more information on the theory of beating the S&P. I'm familiar with the idea, but not enough to give you a good answer. Other Fools?

Dave
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I have read the proposition that if beating the S&P 500 is the objective, buying and holding the ten highest yielding Dow companies, adjusting any sliders, will save time, risk and commissions? Is this true and how would a new fool go about checking this out foolishly? Reading some recent archives, some good stuff back there, I came across and want be able to check some outrageous performance claims for a couple of well known mutual funds, the Janus Twenty & Fildelity blue chip growth. The claim is that the 98 returns have been 74% & 34% respectivly. Can this be true? Where can I go to check these results myself?

crazy8



I like to go to Quicken.com at:
http://www.quicken.com/investments/mutualfunds/
and enter the fund symbols in the upper left-hand corner to get quotes and other info. Check out the Morningstar and Value Line profiles. Janus Twenty's symbol is JAVLX, and Fidelity's Blue Chip Growth is FBGRX. You can also analyze these funds at Smartmoney.com:
http://www.smartmoney.com
or use their fund analyzer at:
http://wwww.smartmoney.com/si/analyzer/
but make sure you have Java enabled on your browser.

Taylor
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Check out www.morningstar.com for the history of these mutual funds.

Thanks fellow fools, never knew where to look unless you ask!

krazy8
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000000 Date: 4/2/99 1:13 AM Number: 9617
buying and holding the ten highest yielding Dow companies,

This is the simplest Dow Dividend Approach, known as the High Yield 10 or HY10. There is a long history of Dow Dividend Approaches, including a book written by the Fools themselves (The Motley Fool Investment Guide). People here at the Fool have been studying and refining these methods for years now. The best variation that is presently known is called the Ratio Procedure or RP variant.

The Foolish investment advice for new investors is to first buy S&P Index funds or spiders - it's a no brainer that will beat most mutual funds and requires no time. Next, if you are willing to spend 15 minutes per year, you can beat that on average with the "Foolish Four," which are presently selected by the RP4 method.

This method is a core of Foolish investing - many of the portfolios modeled here use a "core holding" of these stocks. The Fools have a real money portfolio invested in a four stock variation - presently the RP4 variation. The home page of this portfolio is
http://www.fool.com/ddow/ddow.htm

Links from there will lead you descriptions, history, and past performance analysis.
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<< The claim is that the 98 returns have been 74% & 34% respectivly. Can this be true? >>

Well, since 85% of actively-managed mutual funds fail to match the S&P 500, 15% of them must beat it. The catch is, how do you identify them? Do the same 15% beat the index year after year? How do you pick next year's hot funds, today?

Fools suggest that our time is better spent researching stocks. Or, if you don't care to spend the time, buy index funds or the Foolish Four.
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