This is pretty cool. CrossingWallStreet points to a statement from Dow Jones’ John Prestbo on how they made the new selections for the famous Dow Jones Industrial Average.
Cisco has been on bloggers’ suggestion list for a long time. Do you pay any attention to these kibitzers?
Yes. They and many others take the Dow seriously enough to complain when they think we are doing something wrong and to offer their ideas. So, we take them seriously in return. However, most of these folks are looking at things from an investor’s point of view, as though the Dow was a portfolio they owned (and maybe some of them really do). But our goal is to maintain an index to accurately reflect the market as whole, and by extension the U.S. economy. That is a different purpose, which sometimes leads us in a different direction.
Cisco, of course, replaced GM in the index. Citigroup (C) was replaced by its former unit travellers, but we’re pretty sure there were 0 bloggers getting excited and agitating for that one.