Search Results for: Dow Theory

Charles H. Dow’s version of “Only when the tide goes out do you discover who’s been swimming naked.” “…while good and bad stocks rise and fall together with general conditions, and each stock has its own independent movement, and, as … Continue reading →

Charles H. Dow says that to understand the stock market study business conditions “We believe that the stock market as a whole should be regarded always as an effect of general conditions, and that the way to study the stock … Continue reading →

Charles H. Dow on Business Cycles “These comparisons could be indefinitely increased without changing the essential conclusion, which is that business of all kinds moves in periods of alternating expansion and contraction (Dow, Charles H. Wall Street Journal. Review and … Continue reading →

Change is the only constant, therefore present value is not future value “There are a good many former towns in western Kansas which have become even less than villages.  Many dividend-paying investment stocks have, in the course of time, been … Continue reading →

According to Charles H. Dow, a values-based approach to financial data determine future worth “Values will tell in the long run.  The value of railway stocks can be ascertained to a reasonable extent. If a railway stock is selling below … Continue reading →

Charles H. Dow’s view on the role of shareholders “…some managers look upon the properties which they manage as their own and upon the information which comes to them as personal perquisites, and disregard altogether the fact that they may … Continue reading →

Charles H. Dow’s thoughts on the impact of earnings expectations “A general belief that a stock is going to earn a given rate is sometimes as effective speculatively as the actual demonstration of such earnings (Dow, Charles H. Wall Street … Continue reading →

Charles H. Dow discusses reasonable dividend payout ratio: “Common stocks can hardly be expected to sell up to the same level of return of the greater insecurity of dividends.  Union Pacific may earn 5% or more on the  common stock, … Continue reading →

In this piece, Dow is a leading advocate for frequent and full disclosure for greater clarity to all investors.  This was a concept that was relatively unheard of at the time. “It is in a high degree important for all … Continue reading →

Charles H. Dow says companies with wide moats are difficult to duplicate “It will always be easier to duplicate an industrial plant than a railway plant, and on this account industrial profits cannot be quite as stable as railroad profits … Continue reading →

“Wall Street offers many opportunities to those who know values and possess some capital. But until people learn that some stocks are cheap at $200 per share an others dear at 2 cents per share, and until people learn that … Continue reading →