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Talking Real Money - Investing Talk

Put Down the Dow

Talking Real Money - Investing Talk

Don McDonald

Education, Business, Investing, How To

4.5811 Ratings

🗓️ 3 March 2025

⏱️ 29 minutes

🧾️ Download transcript

Summary

In today's episode: 0:58 Introduction to the Dow Debate 2:11 The Dow's Calculation Explained 4:04 Big Tech's Influence on the Dow 5:17 The Dow's Media Presence 6:27 Ownership of the Dow Jones 8:07 The Arbitrary Nature of Indexes 11:21 Trusting Financial Indexes 14:18 Evaluating Investment Choices 17:06 Risks of Complex Funds 20:04 Reassessing Retirement Strategies 22:05 Tax Implications of Investments Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:34.7

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0:38.0

We're talking real money.

0:41.0

Charles Dow's body lies a moldering in its grave.

0:46.1

It's time for his index to suffer the same damn fate.

0:51.4

It's time to kill the Dow.

0:53.4

Can we stop talking about the Dow Jones 30 industrial

0:57.6

average? Which folks, it's below average, by the way. That's just a lazy person's way of saying,

1:04.6

I can't calculate the value of all the stocks on the market in the 1880s. So let's just add a couple up and divide them by 30.

1:13.6

I mean, for God's sake, it is the dumbest thing ever.

1:18.1

And yet you got to stop there.

1:19.8

What?

1:20.5

People need to understand that they come up with the DJIA average, the Dow Jones

1:27.4

just right. It's just what you just said they add up the

1:29.9

price of the securities right not not adjusted by their capitalization I know it's really

1:36.2

stupid so I mean like if Berkshire Hathaway was in there it would make up 92 percent of the

1:43.1

Dow or something.

...

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