Two simple strategies that beat your financial planner.
So let me repeat the results. $10000 turns into $55 million in 81 years but still a lot more over shorter periods.
But could we make this better? Yes!
So I invented the Pitbulls of the Dow, inspired by O'Shaughnessy.
We start out with the same 30 stocks but now we make some enhancements:
We don't rotate the portfolio once a year on Jan 1 but quarterly on Jan, Mar, Jun and Sep 1. In other words, we take into account the changes in dividends on a quarterly basis not annual basis. In addition, we are also taking into account the changes in price on a quarterly basis not just annual.
We add stock buybacks to the dividend yield to come up with Shareholder Yield. Buybacks are a form of dividends that O'Shaughnessy ignores but I add it back in. So this gives us a very different list than the Dogs.
We add a timing component to the Pitbulls. You see, it makes no sense to me to buy stocks in bear markets. And the Dogs are often in bear markets on Jan 1. So we add in an intermediate timing indicators that ensures that we are only buying stocks in bull markets.
These three changes that create the Pitbulls significantly enhances the return compared to the Dogs. It also reduces risk!
So increased reward with less risk! Can't beat that!
The only place where I teach the exact rules of the Pitbulls of the Dow is in our remarkable comprehensive Wealthbuilder Insider membership program. You really must join if you are serious about making money in stocks and options.
Click here to get more info and join.
Good pitbull trading,
Courtney Smith
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