RSS Feed
Twitter
September 17th, 2008 
QuadsZilla So AIG has failed and there is YAFBO (Yet Another Fucking/Federal Bail Out). Seems the “too big to fail mantra” is alive and well in America.
But AIG’s Failure surely means that it must be replaced in the Dow Jones Industrial average. The placement is ultimately up to NewsCorp which owns Dow Jones.
Interesting potential picks include AAPL, BRK, or maybe (just maybe) the Big G.
Why does it matter? Because tracking funds have to balance large portfolios to mirror the DJIA. It’s usually good for at least a 10% upwards move upon inclusion in the index.
Is GOOG a likely candidate? Probably not – but it would make for an interesting and bold selection by NewsCorp.
Posted in 
Q-zill,
There’s one clear reason why GOOG will NEVER be in the DJIA, and they have even already said so: It’s because the Dow is price-weighted, and Google’s high stock price would make it between 20-30% of the average. Explanation:
seekingalpha.com
Never eh? What? Google’s not allowed to do a stock split?
oh please, Stock splits are SO web 1.0…