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GM Bankruptcy and the Dow 30
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If GM files for bankruptcy it no longer would be in the Dow 30. Could Apple be a reasonable replacement?
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DawnTreader
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Reasonable? Yes. Likely? No.
But anything might happen.
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capablanca
- [ Ignore ]
It is not in our interest as shareholders to have AAPL in the Dow.
And thankfully it is not likely. The Dow is an antiquated price-weighted index. Apple’s share price (135) would make it the most influential stock in the index with nearly 10 times the weight of INTC.
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It is not in our interest as shareholders to have AAPL in the Dow.
And thankfully it is not likely. The Dow is an antiquated price-weighted index. Apple’s share price (135) would make it the most influential stock in the index with nearly 10 times the weight of INTC.
Which is why it is likely to be in Dow. Don’t we want Dow to make new record high?
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Stay Hungry. Stay Foolish. - Steve Jobs
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capablanca
- [ Ignore ]
It is not in our interest as shareholders to have AAPL in the Dow.
And thankfully it is not likely. The Dow is an antiquated price-weighted index. Apple’s share price (135) would make it the most influential stock in the index with nearly 10 times the weight of INTC.
Which is why it is likely to be in Dow. Don’t we want Dow to make new record high?
No. The Dow is irrelevant. I neither want it higher nor lower. It is exactly as important to me as the price of onions in Timbuktu.
The Dow is stupid and useless. For another example, it totally does not matter what happens to GM. If it goes to zero, it will have almost no affect on the Dow. If it triples, it likewise has almost no affect.
A 5% move in IBM has more affect than a 20% move in Intel, and more affect than a 100% move in Citibank.
Dumb. Dumb. Dumb. That anyone pays attention to the Dow is astonishing. And we don’t want Apple to be a part of it.
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csco
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The ends don’t justify the means…
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No. The Dow is irrelevant. I neither want it higher nor lower. It is exactly as important to me as the price of onions in Timbuktu.
The Dow is stupid and useless. For another example, it totally does not matter what happens to GM. If it goes to zero, it will have almost no affect on the Dow. If it triples, it likewise has almost no affect.
A 5% move in IBM has more affect than a 20% move in Intel, and more affect than a 100% move in Citibank.
Dumb. Dumb. Dumb. That anyone pays attention to the Dow is astonishing. And we don’t want Apple to be a part of it.
I also think that there are better indices than the Dow, but considering how closely the three main indices have been tracking each other over the past five years, it isn’t all that bad. It seems a rather good representation of the broader indices. If the index had to be calculated by hand, which is how it was done in 1896, I would use it in a heartbeat.
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Tightwad.
