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I like the book but was somewhat disappointed that the foolish four and where it fits into the picture was not discussed in the book. Any comments?

Kapaa
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Regarding:

I like the book but was somewhat disappointed that the foolish four and where it fits into the picture was not discussed in the
book. Any comments?

Kapaa

Dear Kapaa:

The foolish four is a formula strategy that's underperforming the dow for the past two years. So, it seems, the MF jury's out on the dogs right now.

I think the book does a nice job focusing the Fool on intuitive investing in contrast to the dow formula strategies.

Pox
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I like the book but was somewhat disappointed that the foolish four and where it fits into the picture was not discussed in the book. Any comments?

The Motley Fool did a separate book about the Foolish Four. In my opinion, re-hashing the subject in the Rule book would have watered down the Breaker/Maker message. Take a look at the Rule Breaker and Rule Maker web pages to get an idea of how the Foolish Four fits in.

Tony
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Regarding:

The foolish four is a formula strategy that's underperforming the dow for the past two years. So, it seems, the MF jury's out on the dogs right now.

---------------------------------------

I don't have the time to look right now, but, I think that if we looked at the history of the foolish four strategy that it has had stretches where it under performed the market for two consecutive years. Does the past two years suddenly invalidate the strategy?

kapaa
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Kapaa asks, "Does the past two years suddenly invalidate the strategy?"

In my mind, no it doesn't. The market has been on a strong growth curve, driven by advances in technology and the democratizing of the world. This has advantaged the non-industrials -- and slowed the more defensive, Dogs-of-the-Dow strategies.

I don't believe this will continue forever. And the Foolish Four should come out smelling like a rose when corporate earnings slow down a bit. Glad to have it in our portfolio, though for tax reasons, we've held it to a fairly small cut overall.

Tom Gardner, Fool

PS Yes, come April 15th, the Rule Maker Portfolio will be paying taxes.
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