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Hi all Wise Fools - have spent a great deal of time reading the Foolish Four history and current proceedures and would really appreciate assistance with the following 1. The RP proceedure is applied to the 30 stocks of the Dow Jones Industrial Average from which the "4" are chosen. In Australia would one apply the RP proceedure to the ASX Industrial 100?

2. Then as a comparative the Foolish Four use Dow Jones , S&P 500, and NASDAQ to prove that the "4" have a greater percentage of return. We have the All Ordinaries Index - would this be the only comparison?

3. Also what the devil does "ctg" mean - I have searched high and low and cannot for the life of me find a definition - I know it is bound to be something simple!!! eg ASX Code AMP Shop ctg $1 ....please
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No. of Recommendations: 1
Hi Linda

We have implemented a Foolish Four RP Strategy in our investment club, though it is too early yet to determine hoe effective it is. We have decided to use the Top 50 though, rather then the Top100. If we get any Trusts in the top 4 picks we ignore them ie Westfield Trust or General Properties Trust as essentially these are companies that are set up to pay higher yields.

I believe you really only have the All Ordinaries to compare it to....though perhaps you could use the All Ord 100 and the All Ord 500 as well.

As to gtg...would it be Capital Tax Gain as compared to Capital Gains Tax which we use here.

Personal Investor Magazine has some articles on Aussie Dogs using a similar strategy to the Foolish Four...but without the RP Variation. Its been backtested 10 years though the data may not be completely reliable. Try their Web Site
www.personalinvestor.com.au

Yours Foolishly
Steve

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