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Beating the Dow [Paperback]

Michael O'Higgins , John Downes
4.0 out of 5 stars  See all reviews (9 customer reviews)

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Product details

  • Paperback: 288 pages
  • Publisher: HarperCollins; Revised Ed edition (20 July 2000)
  • Language: English
  • ISBN-10: 0066620473
  • ISBN-13: 978-0066620473
  • Product Dimensions: 20.5 x 13.6 x 2 cm
  • Average Customer Review: 4.0 out of 5 stars  See all reviews (9 customer reviews)
  • Amazon Bestsellers Rank: 438,521 in Books (See Top 100 in Books)

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Synopsis

Offers a proven investment system to maximize profits and minimize risks for all investors.

Inside This Book (Learn More)
First Sentence
In 1985 Texaco, America's third largest oil company, was ordered to pay Pennzoil Company a huge $10.3 billion judgment. Read the first page
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Front Cover | Copyright | Table of Contents | Excerpt | Index | Back Cover
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Customer Reviews

Most Helpful Customer Reviews
7 of 7 people found the following review helpful
Format:Paperback
2nd edition (2000) with Johns Downes, 259 pages

O'Higgins' basic method for selecting out of favour stocks from the Dow Jones Industrial Average can be explained in a single sentence: list the ten stocks from the Dow with the highest dividend yield, and then select the five with the lowest share prices from these ten. Buy an equal weighting in each of them and after one year, sell and start again.

So you could be forgiven for wondering how he manages to fill a book. I found significant chunks to be of little interest in understanding why and how his method has worked. For example, I didn't find his introduction on why stocks are the best long term investments, or his potted history of each of the Dow constituents (which takes up just under half the book) added much. (The history of the Dow stocks also reads as if at least the updates for the 2nd edition were written in a considerable hurry.) However, if you are new to equity investing these parts may be more useful to you. Even so, I cannot understand why O'Higgins included the addresses for each of the Dow stocks in the main body of the book when his method is a mechanical one which requires that you do not do any specific stock research or have any contact with companies.

I bought this book with a particular aim in mind: to understand the background better to see how it could be applied in the UK. For example, some people try to apply it to the FTSE 100 and others to the FT 30 index and others use the lowest market capitalisation rather than the lowest share price as the second filter.

After reading the book I concluded that the FT 30 index with lower share prices (i.e. with minimum changes to O'Higgins' original method for the Dow) would be most appropriate.
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3 of 3 people found the following review helpful
5.0 out of 5 stars The best "stratagy" that I know of. 4 Dec 1998
By A Customer
Format:Paperback
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.
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1 of 1 people found the following review helpful
5.0 out of 5 stars I found the pot at the end of the rainbow 13 Jan 1998
By A Customer
Format:Paperback
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!
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4.0 out of 5 stars Good Investment Strategy 3 Feb 1999
By A Customer
Format:Paperback
I started using the beating the Dow strategy last June and picked MO, T, UK, CAT & IP. Over the six month period I have "beat the Dow" due to stellar performance of MO & T. UK and CAT have prevented this portfolio from extraordinary performance. Using relative strength index to help time the picks would have helped avoid buying UK and CAT at near their 52 week highs. Beating the Dow is a good way to get into buying stocks without great risk.
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2.0 out of 5 stars A good beginning, but somewhat outdated. 20 Jan 1999
By A Customer
Mr. O'Higgins' "Dogs of the Dow" strategy is necessary reading for any amateur investor. However, he really didn't get into that until about halfway through side two. Most of the tape was his musings about the current situation with the thirty DOW stocks. Unfortunately, it was recorded in 1990! The majority of this tape was hopelessly out of date. A simplified book or tape without all the discussion of the 1990 situation would be far preferrable. Still, the five or ten stock strategies he outlines should comprise a portion of every investor's portfolio.
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4.0 out of 5 stars More than just investment analysis, good reading 26 Nov 1998
By A Customer
Format:Paperback
This book is good reading for investors who want history about the DJIA. The authors provide analysis on various companies in the index and how to invest using that market.
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5.0 out of 5 stars Great low risk, high return strategy that works. 11 Jun 1997
By A Customer
Format:Paperback
I have never found a better investment tool that combines high returns with low risk. I have personally used this strategy for the last three years and it works great. It does not require a lot of effort and you only have to make changes once a year. Highly recommended.
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0 of 1 people found the following review helpful
Format:Paperback
This was one of the first finance books I ever read and I applied its principles to the FTSE 100 here in the UK. I have to say the method worked well for me. In short a well written and researched book.
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