Dow Underdogs

[rscottie]

RE: GE and quality. One of the reasons the Dogs of the Dow works is that the companies involved are quality companies. AIM_Hier commented on GE's long term quality and I think that is very important.

In one of my prior lives I was in a head hunter company in Atlanta. One of the things that struck me was how we would not even consider sending borderline candidates to companies such as Coca Cola. They would only look at people with certain success profiles: matching theirs. Hence the companies would be constant in their future approach and therefore hopefully continue to be successful.

The bottom line is DJIA type companies have a culture of success that is not so affected by fads. They will probably continue to succeed in the future. The downs in their stock prices should be temporary, making them good candidates for this approach.

Thus what appears to be a statistic truth also has a logical explanation.

Scott