Did you ever wonder why Berkshire Hathaway
I can hear some of you giggling out there, because you know the answer: the Dow is a deeply flawed index that could stand a major makeover.
OK, let me show you what I mean. Now that General Motors
That's also why Google
That's far from the most obnoxious addition to the index imaginable, though. Agriculture and transportation phenom Seaboard carries a market worth of just $1.3 billion -- but this small-cap goes for $1,035 per share. The other 29 share prices add up to $1,048 as I write this. Now, that's what I call overweighted!
In an ideal world, the Dow would be weighted by more reasonable metrics like market cap or revenue. In the second-best of all possible worlds, Google and Berkshire would stop being stubborn and split their shares once in a blue moon. But this is the third-best universe imaginable, at best. We're stuck with what we've got here.
If GM and a couple of other weaklings get booted off the Dow, I'm rooting for Cisco Systems
The larger lesson today is simple: don't stare yourself blind at the Dow Industrials. It doesn't tell the whole story.
Google is a Motley Fool Rule Breakers pick. Apple and Berkshire Hathaway are Motley Fool Stock Advisor recommendations. Berkshire Hathaway and Wal-Mart Stores are Motley Fool Inside Value picks. The Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletters today, free for 30 days.
Fool contributor Anders Bylund owns shares in Google, but he holds no other position in any of the companies discussed here. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.