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I originally learned of the Dogs Of The Dow strategy from my father in law who was playing with it at the time.
The idea for the Dogs Of The Dow strategy was put forth by Michael O’Higgins in his book Beating The Dow. The strategy is to invest equal amounts in the 10 highest yielding stocks on the Dow Jones index. These top 10 yielding stocks are referred to as the Dogs Of The Dow. The idea is to buy low and sell high. That the 10 stocks with highest yields have dropped in price. But it also relies on the idea that all of the companies in the Dow Jones index are strong companies, and strong enough to survive the down times. You hold the stocks for one year, and then sell the stocks that are no longer part of the Dogs Of The Dow, and buy the new dogs.
There are a bunch of variations of the Dogs Of The Dow strategy. For instance you can buy 9 of the top 10 yielding stocks, not buy the top most yielding stock. The top most yielding stock is often a very trouble company. Another variation is to buy the five lowest priced stocks of the Dogs Of The Dow. This is called the Small Dogs Of The Dow. Motley Fool put forth a variation called the Foolish Four. They have since admitted that it didn’t work as well as they though in the long run.
People are always looking for simple stock picking ideas that don’t require the work of stock research. The problem with ideas like this is that people start using the idea to pick the stocks. When enough people follow the strategy it affects the price of the stocks, and messes up the whole thing. Keep in mind almost any stock picking strategy works in a strong bull market!
I played with the Dogs Of The Dow briefly, and then dropped the strategy.

I originally bought the Citibank stock when I was playing with the Dogs Of The Dow strategy. When I decided not to follow that strategy anymore, I sold off the Citibank stock. But shortly afterward I got a dividend which was reinvested, and I now owned this little tiny fraction of a share of Citibank stock. It was only worth a couple of bucks. And it has been sitting in my account ever since. It was worthless than the transaction cost to sell it. But I get two free transactions a month, so this month I decided to use one of them to sell that little bit of Citibank stock to get it off my books!

Warren Buffett announce that he will start giving away 85% of his fortune to charity starting in July 2006. Warren Buffett’s is currently the second richest man in the world, and his holdings are worth $44 billion! He said he plans to give the money to five charitible foundations, with most of it going to the Bill & Melinda Gates Foundation. The remaining donations with go to foundations headed by Buffett’s three children, Susan, Howard, and Peter, and to the Susan Thompson Buffett Foundation (named after Buffett’s late wife).
Buffett has always said he would give his money to philanthropy. But he said it would happen upon his death. Apparently he has changed his mind.

I saw a brief commercial on the TV this morning for a website 93moneypower.com. That domain name reminds me a lot of the 17makethemoney.com domain name for another commercial I saw weeks ago. Related?
The 93moneypower.com domain seems to belong to a place called Home Business Connection. A search on the name “Home Business Connection” brought up another website http://www.homebusinessconnection.com. Same guys?

On the 93moneypower.com web site they want to you to complete a survey, and they will hook you up with 5 home businesses. The questions are very similar to the ones I answered on the 17makethemoney.com web site.

A DNS lookup showed that 93moneypower.com was registered by Diamond Media, and that homebusinessconnection.com was registered by Cutting Edge Media? Related? Diamonds are often used for cutting edges…




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