Dow
Jones Stocks - 20 Years
Written
and edited by Harry Rubins for his clients and
friends.
Not intended as legal or tax advice.
Obtain professional advice before taking action on
this information.
Twenty years ago
it was impossible to foretell the winners and
losers of what now makes up the 30 stocks in the
Dow Jones index. The same holds true for the next
twenty years. Who would have known back then that
it was much smarter to put your money in oil,
tobacco or a phone company than in technology -
IBM.
A $10,000
investment in IBM grew to only $13,777 after 20
years. But you would have needed over $30,000 just
to keep even with inflation. Eight out of the
current Dow Jones stocks would have lost money in
real terms - a loss of purchasing power.
Click
Here For The Answer
The following
list shows what happened to a $10,000
investment
in each of the following companies.
Dow Jones
Companies 1/1/73 - 12/31/92
| Company |
$10,000
Grew To: |
| Boeing |
$475,605 |
| Phillip
Morris |
$404,118 |
| Exxon |
$201,783 |
| AT&T |
$161,768 |
| Merck |
$144,922 |
| Coca-Cola |
$140,002 |
| Morgan
(J.P.) & Co. |
$119,906 |
| Woolworth |
$119,864 |
| Chevron |
$109,884 |
| United
Technologies |
$102,363 |
| General
Electric |
$99,077 |
| Aluminum Co.
of America |
$85,651 |
| Allied
Signal |
$79,789 |
| Disney
(Walt) |
$78,503 |
| McDonalds |
$78,243 |
| Proctor
& Gamble |
$75,696 |
| Texaco |
$73,236 |
| International
Paper |
$71,893 |
| DuPont
(E.I.) De Nemours |
$62,358 |
| Goodyear
Tire & Rubber |
$62,145 |
| Minnesota
Mining & Mfg. |
$48,085 |
| Westinghouse |
$32,038 |
| |
Inflation |
| General
Motors |
$30,903 |
| Union
Carbide |
$30,848 |
| American
Express |
$30,223 |
| Caterpillar |
$20,739 |
| Sears |
$20,665 |
| Eastman
Kodak |
$13,835 |
| IBM |
$13,777 |
Bethlehem
Steel
|
$11,787
|
| Source:
The Pioneer Group |
Fortunately the
other Dow Jones stocks not only kept up with
inflation but grew substantially in real terms. An
interesting example in the disparity between
different investments and the potential strength
of a well managed, diversified portfolio. |
