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Investment Analysis Clubs / The BMW Method


Subject:  Re: Charts -- with Yahoo data Date:  3/13/2007  11:09 AM
Author:  BuildMWell Number:  21902 of 42250

"I'm glad the charts are now dividend adjusted. In my opinion, this goes a long way towards leveling the playing field.....However, the apparent lack of consensus makes me question my understanding on this point."

I haven't seen the lack of consensus you mention. I hope you did not take my comments as a lack of support for the Yahoo data.

My only comment had to do with the link between individual stocks and the market index. Since the market is not dividend adjusted and stocks are with the Yahoo data, it could be argued I am comparing apples and oranges with my original arguments.

Remember, the whole concept of the BMW Method was that we can look at the DOW as 30 individual stocks. If the DOW can grow at 8% to 10% annually, then we can beat the DOW by owning the under-valued stocks. Once we toss dividends into the equation, that comparison is no longer valid.

Now, I have maintained that the dividends are actually gravy and they add to the profitibility of the situation. I think a comparison of the data from MSN and Yahoo will bear this out. But, without the comparison, we will not know. I think it helps to see the picture on the charts so we will have confidence our assumptions.

The bottom line is we need to work with the data that we have avalable at the lowest possible price. Thanks to Mike's wonderful work, we have free data from Yahoo while MSN seems to have cut off our lines of communication for some reason.

I need to take a look at Yahoo's data. Hopefully, I can get accurate historical quotes back 30 years like I can with BigCharts. I will let you know what I find.
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