The Dow, America’s Least Useful Stock Index

Buzzfeed – March 6, 2015

The Dow is made up of just 30 blue-chip companies that supposedly reflect the overall performance of American industry. But unlike other indices that investors follow more closely, like the S&P 500 or the Nasdaq 100, the 119-year-old DJIA is weighted by the dollar price of the individual stocks in the index instead of the overall size of the companies. That creates some very strange results. It will mean Apple, the world’s biggest public company, with a market capitalization of $753 billion, will be less important to the index than 3M or Goldman Sachs.

Even useless data helps me to forget,
That what I call “investing” is really a BET.

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