DWDI vs SPDR - 9/28 Recap
Major Markets, DWDI & SPDRs ended today as follows
Personal Portfolio +0.26%
The 10 Stocks that make up the DWD Index
For those of you just joining our program, I did a stock screening on Sunday, September 24th, 2006 from MorningStar which looked for 5 Star stocks that were currently selling for well below their fair value (as estimated by MorningStar) and were below average in risk. The results were the 10 stocks you see above. I then created a tracking portfolio which purchased just enough shares of each stock to equal $100 per stock thus creating a total portfolio value of $1,000 or an index value of 1000
As a benchmark, I also purchased enough shares of an ETF called Spiders (SPY) to also equal $1,000 so now we may track the benchmark Spiders (which track the S&P500) against the index of 10 stocks obtain via the MorningStar screening.
Since this blogsite is called Dollar Wise Decisions I decided to call the index the Dollar Wise Decision Index or DWDI.
I am also curious how purchasing the DWDI stocks via dollar cost averaging will compare to the one time $1,000 purchases. I am considering purchasing $25 worth of each company once a month - ...and by "considering" I guess what I'm really saying is I'm trying to figure out how I can afford an additional $250/month outlay of cash that I hadn't really planned for. It will be important to be able to maintain that purchase level for at least a year and maybe two years (as an initial guess) I already have DRIPs for JNJ and BUD which require a minimum monthly investment of $25 which is why I decided on that dollar amount for all of the stocks so my investments in each company will be equally weighted.
| Market | % Change | Value |
| Dow | +0.25% | 11,718.45 |
| S&P 500 | +0.19% | 1,339.15 |
| NASDAQ | +0.29% | 2,270.02 |
| - | - | - |
| DWDI | +0.55% | 1,020.23 |
| SPY | -0.04% | 1,016.89 |
Personal Portfolio +0.26%
The 10 Stocks that make up the DWD Index
| Stock | % Change | Value |
| Anheuser-Busch | 1.18 | 101.74 |
| Biomet | 0.37 | 101.30 |
| Fastenal | 1.20 | 104.39 |
| Home Depot | 0.66 | 102.06 |
| Johnson&Johnson | 0.12 | 101.47 |
| Medtronic | 0.83 | 99.46 |
| Microsoft | -0.15 | 102.77 |
| Wal-Mart | 0.63 | 103.15 |
| Washington Post | 0.17 | 101.26 |
| Wrigley | 0.48 | 102.63 |
For those of you just joining our program, I did a stock screening on Sunday, September 24th, 2006 from MorningStar which looked for 5 Star stocks that were currently selling for well below their fair value (as estimated by MorningStar) and were below average in risk. The results were the 10 stocks you see above. I then created a tracking portfolio which purchased just enough shares of each stock to equal $100 per stock thus creating a total portfolio value of $1,000 or an index value of 1000
As a benchmark, I also purchased enough shares of an ETF called Spiders (SPY) to also equal $1,000 so now we may track the benchmark Spiders (which track the S&P500) against the index of 10 stocks obtain via the MorningStar screening.
Since this blogsite is called Dollar Wise Decisions I decided to call the index the Dollar Wise Decision Index or DWDI.
I am also curious how purchasing the DWDI stocks via dollar cost averaging will compare to the one time $1,000 purchases. I am considering purchasing $25 worth of each company once a month - ...and by "considering" I guess what I'm really saying is I'm trying to figure out how I can afford an additional $250/month outlay of cash that I hadn't really planned for. It will be important to be able to maintain that purchase level for at least a year and maybe two years (as an initial guess) I already have DRIPs for JNJ and BUD which require a minimum monthly investment of $25 which is why I decided on that dollar amount for all of the stocks so my investments in each company will be equally weighted.
posted by Scott at
11:06 PM
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