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I agree with your questioning this methodology.

The first point is the Dow is 30 companies which way outstrip the ASX companies in market cap and generally in business opportunities, you are not comparing apples with apples. Next point is you would need to backtest this method over a significant period of time to see whether it worked in the past.

I have tried all sorts of methods for stock trading and investing, and the only one which makes sense to me is to look at a company, value it and buy it if it is selling for less than what you value it at. I know that it is easy to say and hard to do, but unless you know why you are buying a company you will not have the confidence to back your own judgement and you will be a slave to every rumour and new fangled method that is advertised.

If you want to use a method such as dogs of the Dow which has been backtested and has worked in the past (not necessarily the future), you could open an account with a broker and buy the US shares, eg Commonwealth, TD Waterhouse.
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