Beating the Dow Revised Edition: A High-Return, Low-Risk Method for Investing in the Dow Jones Industrial Stocks with as Little as $5,000

by Michael B. O'Higgins and John Downes

Book Overview

In 1991, Michael B. O'Higgins, one of the nation's top money managers, turned the investment world upside down with an ingenious strategy, showing how all investors--from those with only $5,000 to invest to millionaires--could beat the pros 95% of the time by putting 100% of their equity investment into the high-yield, low-risk dog stocks of the Dow Jones Industrial Average. His formula spawned a veritable industry, including websites, mutual funds,...

• Format: Paperback
• Language: English
• ISBN: 0066620473
• ISBN13: 9780066620473
• Release Date: March 2000
• Publisher: Harper Business
• Length: 320 Pages
• Weight: 0.65 lbs.
• Dimensions: 0.8" x 5.3" x 8.1"

Customer Reviews

Investing sensibly

Some people might laugh at this book specially the brokers who make living by sucking the commision out of an average investor. What had happened in the NASDAQ in 1999 before the correction was absolutely mind blowing and this book might have looked like a bad joke i.e. advocating to invest in companies like International Paper! but now that the dotcoms are down the drain, the valuations are somewhat back on earth, the margin-debt bitten people are done crying, maybe it is time that us i.e. average investors read this book.This book as the name says is all about investing in Dow companies, the giants of the US and global economy. The companies which I truly believe that world could come to an end but GE would still be there. The book covers all the Dow components individually along with their historical financial performance, weaknesses, strenghts and their power to stay in business by being profitable over years and years. There are many different 'low risk' investment strategies covered in this book such as 'High Yielding 5'. These are the 5 Dow stock that you pick annually based on the criteria described, HOLD it for 1 year, redo the math (barely any)and pick your 5 stocks again. You also sell some at this point that didn;t meet your criteria and pick the new ones to fill their spot.Sounds simple, yes! and that's the way it should be. Not only you can ride out the swings of the stock market in this way but also save a ton on commisions, taxes and most importantly be less stressed.If you read the Motley Fool, you'll notice some of their strategies are derived from O'Higgin's methods. A must read for all investors, specially younger people like myself who want to start building the nest yesterday!

The numbers speak for themselves

Day traders often laugh at O'Higgins as their returns beat his. But keep in mind it takes a total moron not to make a killing in the market these past few years. Wait until the next recession and the day traders have all thrown themselves into NY Harbor. O'Higgins' system will still be blowing away the averages. You are a fool to not buy this book. Especially if you are a casual investor. When he says his system takes 5 minutes per year he is not kidding, and year after year his system will blow away those mutual funds you have your money in now.

The easiest no brain way to make money.

This book is now quite dated as far as the discussion of the individual Dow stocks, but the principals are still the same. I have never lost money doing this formula ever. In fact, I now average about 27% over the past seven years with only looking at my portfolio once a year. I now buy this book for a lot of my friends who ask me about investing when they have no experience. Adam Shaughnessy ashag@flash.net

The best "stratagy" that I know of.

I have the book and have used the "High Yield 5" method since 1995. The results have beaten all other methods of investment that I have used and with the least amount of effort. I also enjoy the feeling of comfort involved with owning the various DJIA 30 stocks. Even if the share price drops, I know that in time it will recover! I'm convinced that in the long term, equities give the best return and that market timing is to risky and difficult. This method is so easy and the best news is that it works.

I found the pot at the end of the rainbow

I know it sounds corny, but I feel that I found the pot at the end of the rainbow. I knew if there was some way that I could get the best of the Dow 30 that I could make money on a regular basis. But which ones? One day while my wife and I were at the library she hands me Beating The Dow, I read it that evening and I got my answer to "which ones". Without hesitation I started a portfolio and have stuck with the stratagy for several years. The book is easy to read and very informative. It gives a rundown on all the Dow stocks with easy to read charts and statistics. I wish this book was around 20 years ago. P.S. I purchased the book!