Amazon.com Review
Had you invested $10,000 in treasury bills over the last 25 years, your money would have grown to $24,801. But had you put that same $10,000 into the Foolish Four variation of the Dow Approach 25 years ago, you would have accumulated $1.4 million. Sound too good to be true? Not according to The Motley Fool. The Foolish Four is a mechanical system that annually selects stocks from the 30 that make up the Dow Jones Industrial Average. The stocks are selected based on their dividend yield and price, and year after year the result--22 percent annual return for the last 25 years--usually beats that of most mutual funds. The Foolish Four builds on an approach that was first advocated in 1991 by Michael O'Higgins in his book Beating the Dow. Since then many--most prominently those at The Motley Fool--have tweaked O'Higgins's original formula. The Foolish Four is a useful compilation of such tweaks and is packed with charts and analyses of three variants of the Dow Approach. Easy to read, easy to do, and good for your bottom line. --Harry C. Edwards