“It may be by far the most valuable American company but Apple Inc still can’t get into at least one exclusive club – the 30-member Dow Jones Industrial Average,” Odrigo Campos and Chuck Mikolajczak write for Reuters.
“That may not be a problem for the company behind the iPhone and the iPad, after all Apple shares recently hit record highs,” Campos and Mikolajczak write. “It is, though, hurting those who tie their investments to the performance of the venerable Dow, which was first calculated in 1896 and is still probably the best-known stock index in the world.”
“Had Apple been substituted for 29 of the 30 Dow components last June, the index would have been higher,” Campos and Mikolajczak write. “So why can’t a company that so dominates the consumer and technology worlds, and whose share price has climbed an astounding split-adjusted 3,500 percent since January 2000, get into an index that has gained just 55 percent in that period?”
Read more in the full article here.
MacDailyNews Take: It is kind of nonsensical that Apple isn’t a Dow component, but that’s the Dow’s problem, not Apple’s.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]