Buy Hold Sell: 3 dogs of the ASX 100 (and 2 in for a rebound)
Manage episode 335071025 series 2656707
In 1991, Florida-based portfolio manager Michael B. O'Higgins released his book "Beating the Dow". In it, he proposed a strategy whereby with as little as $5000, investors could beat the pros 95% of the time by investing in the 10 high-yield blue-chip "dogs" of the Dow Jones Industrial Average (DJIA).
Inspired by O'Higgins' work, Atlas Funds Management's Hugh Dive runs his very own version of this strategy, building a portfolio of the 10 worst-performing ASX-listed large caps at the start of the new financial year and tracking their progress.
The strike rate, surprisingly, is quite good - with the 10 "dogs" beating the benchmark in seven out of the last 10 years.
So in this episode, Livewire's Ally Selby was joined by Dive and IML's Hugh Giddy for their analysis of three of the worst-performing blue-chip stocks over the past 12 months.
Plus, they each name one beaten-down stock that they believe is the best contender for a rebound over the year ahead.
Note: This episode was filmed on Wednesday 20th July 2022. You can read an edited transcript below: