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Author: jbking Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1359  
Subject: Re: Investing in Foolish 50 Date: 9/19/2002 12:06 PM
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Greetings Brad,

How exactly do I go about setting up a Foolish Four-type portfolio using this index?

Why would you want to do this? Really, I mean where is the justification in this rather new index that it's higher-yielding stocks will be the best out of it most of the time?

I don't really see any clear definition as to what I should do as I did with the Foolish Four.

Could it be that the Fool 50 Index isn't investable?

Maybe there isn't any. Any insight into this would be greatly appreciated.

Some snippets about it with any bold added by me:

From http://www.fool.com/now50/now50info.htm :
"The NOW is designed with the intention of being an index, not a portfolio. "

"The FOOL 50 is an index, not a portfolio, and definitely not a list of recommended stocks. This is an important distinction."

"If you want to invest in FOOL 50 companies, please take this list as nothing more than a starting point and do your homework. "

From http://www.fool.com/now50/2002/2qr020802.htm :
"We put together the FOOL 50 in late 1999, at the height of the stock market bubble. It launched on the first day of trading in 2000. When we put together this index, we gave no consideration whatsoever to company valuation. Why would we? This isn't a portfolio -- it's a measuring device. "

Lastly, http://www.geocities.com/clarrabee/NOW_50.html is an investment club that invests in a manner to mimic the NOW 50. I would note that indices are not directly investable and to mimic the portfolio of 50 companies in the weightings given may require either a fair amount of capital or a broker that will allow fractional shares, IMO.

Regards,
JB
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