Better Buy: Berkshire Hathaway or All 30 Dow Jones Stocks?
The Dow Jones Industrial Average has for years been the most popular bellwether by which investors measure the performance of the stock market. While the S&P 500 might be more representative of the market, tracking the 500 largest stocks in the U.S., the Dow Jones Industrial Average is more selective, representing just 30 large, blue-chip companies across the various sectors of the economy.
They are not necessarily the 30 largest. Rather, they are selected by a committee based on a variety of factors, but all are well-known, stable, and influential companies. Case in point: The seventh largest company in the world by market cap, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), is not in the Dow, but insurer Travelers Companies is. So, if you wanted to invest in an exchange-traded fund (ETF) that included Warren Buffett's company, you would have to look elsewhere. Or you could invest in the stock on its own.
But would you be better off buying shares of Berkshire Hathaway, or all 30 stocks in the Dow Jones Industrial Average?
Source Fool.com
