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One main difference between the 20 Leaders and the Dow is that companies can drop out of the 20 Leaders purely on Market Cap but the Dow has very few additions and deletions. This will skew the data. It is my belief that the foolish 4 strategy works because of the big index funds investing in the Dow, this will exagerate over and under performance and when sanity prevails the price comes back to the mean.

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