DWDI vs SPDR - 9/29 Recap
Major Markets, DWDI & SPDRs ended today as follows
Personal Portfolio -0.28%
The 10 Stocks that make up the DWD Index
Looks like everything starting with the letters "Mi" on were the biggest winners for the week with the Washington Post scoring the biggest with a total gain of 3.70%
Biomet and Medtronic are two stocks that can be bought cheaper today than at the beginning of the week. They are also two stocks I've wondered about because both of them are in the Medical Equipment catagory and when only 10 stocks comprising the index I've been concerned about the unequal weighting in the Healthcare Services (HS).
The S&P 500 has a weighting of 12.29% in HS while the DWDI has a 30% weighting in HS. Johnson & Johnson makes up the third stock in the healthcare sector. (each stock initially made up 10% due to the equal weight distribution of $100 invested per company)
There are a few different ways to look at this index (or potential portfolio) - as a portfolio I don't think I would want both Biomet and Medtronics in the mix. Consumer services is like the Healthcare Services because we have both Home Depot and Wal-Mart in the mix and honestly, neither of those two companies are initially appealing to me. I haven't cared for Home Depot because of their management decisions and MorningStar would seem to agree with that assesment by giving HD a Stewardship Grade of a 'D'.
Wal-Mart is personally interesting because it was one of my first "big buys" when I was younger. I had bought 150 shares of the company at a bit over $60/share ...$64 seems to come to mind and I believe they split shortly after I bought the shares. This was back in the mid '80s and was also when I started to realize that I could start to become my own bank because, after the stock split, I used those 300 shares in what's called a "perfected lien" and secured a loan at very favorable interest rates. To this day, I'm still not sure why I needed to use $9,000+ worth of stock for a loan or what the money was used for ...maybe someday I'll figure that out.
But, we're talking about 20 years ago and now-a-days I generally don't care to shop at Wal-Mart as much as I used to however, a few weeks ago I did stop by a Wal-Mart on a Monday morning around 8 a.m. and actually found the shopping experience to be pleasureable.
I've got a few different topics going here ...I had mentioned the different ways to look at an index. The DWDI is clearly not a specialized portfolio nor would I want it to be. I like the below average risk factor inherent with the stocks.
What I wouldn't mind doing is replacing Biomet with a Financial Services company, perhaps a bank. I would be keeping Metronics for the same reason most girls pick certain football teams to win - because either they've heard of one team more than another or they like the uniforms. I'm not sure what uniforms Metronics has but I have heard of them more than Biomet.
In the Manufacturing Economy sectors we have Consumer Goods, Industrial Materials, Energy and Utilities. I've got a 20% weighting in Consumer Goods with Anheuser-Busch and Wrigley ...talk about different ends of the spectrum.
Now, which one of these should be kept? which one to replace ...
here is a good example of the psychology of money/investing and probably a good difference between men and women when it comes to the stock market. Overall, men tend to see money as a source of power while women will generally tend to view it in terms of security.
To say you own Anheuser-Busch with it's ultra cool stock symbol of BUD is quite a bit more macho than saying you own the chewing gum company, Wrigley with it's not so attractive stock symbol of WWY.
Still, these 10 stocks come from a screening and one of the major criteria I think I may have forgotten to mention in yesterdays post is the fact that all 10 of the DWDI stocks have increased their revenue and earnings per share every year for the past 10 years.
| Market | % Change | Value |
| Dow | -0.34% | 11,679.07 |
| S&P 500 | -0.25% | 1,335.85 |
| NASDAQ | -0.51% | 2,258.43 |
| - | - | - |
| DWDI | -0.47% | 1,015.22 |
| SPY | -0.08% | 1,016.05 |
The 10 Stocks that make up the DWD Index
| Stock | % Change | Value |
| Anheuser-Busch | -0.96 | 100.76 |
| Biomet | -1.38 | 99.90 |
| Fastenal | -2.89 | 101.36 |
| Home Depot | -1.17 | 100.86 |
| Johnson&Johnson | 0.06 | 101.53 |
| Medtronic | 0.19 | 99.66 |
| Microsoft | -0.18 | 102.59 |
| Wal-Mart | -0.98 | 102.13 |
| Washington Post | 0.17 | 103.70 |
| Wrigley | 0.09 | 102.72 |
Looks like everything starting with the letters "Mi" on were the biggest winners for the week with the Washington Post scoring the biggest with a total gain of 3.70%
Biomet and Medtronic are two stocks that can be bought cheaper today than at the beginning of the week. They are also two stocks I've wondered about because both of them are in the Medical Equipment catagory and when only 10 stocks comprising the index I've been concerned about the unequal weighting in the Healthcare Services (HS).
The S&P 500 has a weighting of 12.29% in HS while the DWDI has a 30% weighting in HS. Johnson & Johnson makes up the third stock in the healthcare sector. (each stock initially made up 10% due to the equal weight distribution of $100 invested per company)
There are a few different ways to look at this index (or potential portfolio) - as a portfolio I don't think I would want both Biomet and Medtronics in the mix. Consumer services is like the Healthcare Services because we have both Home Depot and Wal-Mart in the mix and honestly, neither of those two companies are initially appealing to me. I haven't cared for Home Depot because of their management decisions and MorningStar would seem to agree with that assesment by giving HD a Stewardship Grade of a 'D'.
Wal-Mart is personally interesting because it was one of my first "big buys" when I was younger. I had bought 150 shares of the company at a bit over $60/share ...$64 seems to come to mind and I believe they split shortly after I bought the shares. This was back in the mid '80s and was also when I started to realize that I could start to become my own bank because, after the stock split, I used those 300 shares in what's called a "perfected lien" and secured a loan at very favorable interest rates. To this day, I'm still not sure why I needed to use $9,000+ worth of stock for a loan or what the money was used for ...maybe someday I'll figure that out.
But, we're talking about 20 years ago and now-a-days I generally don't care to shop at Wal-Mart as much as I used to however, a few weeks ago I did stop by a Wal-Mart on a Monday morning around 8 a.m. and actually found the shopping experience to be pleasureable.
I've got a few different topics going here ...I had mentioned the different ways to look at an index. The DWDI is clearly not a specialized portfolio nor would I want it to be. I like the below average risk factor inherent with the stocks.
What I wouldn't mind doing is replacing Biomet with a Financial Services company, perhaps a bank. I would be keeping Metronics for the same reason most girls pick certain football teams to win - because either they've heard of one team more than another or they like the uniforms. I'm not sure what uniforms Metronics has but I have heard of them more than Biomet.
In the Manufacturing Economy sectors we have Consumer Goods, Industrial Materials, Energy and Utilities. I've got a 20% weighting in Consumer Goods with Anheuser-Busch and Wrigley ...talk about different ends of the spectrum.
Now, which one of these should be kept? which one to replace ...
here is a good example of the psychology of money/investing and probably a good difference between men and women when it comes to the stock market. Overall, men tend to see money as a source of power while women will generally tend to view it in terms of security.
To say you own Anheuser-Busch with it's ultra cool stock symbol of BUD is quite a bit more macho than saying you own the chewing gum company, Wrigley with it's not so attractive stock symbol of WWY.
Still, these 10 stocks come from a screening and one of the major criteria I think I may have forgotten to mention in yesterdays post is the fact that all 10 of the DWDI stocks have increased their revenue and earnings per share every year for the past 10 years.
posted by Scott at
10:15 PM
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