Dow Breaks 11,000

The Dow Jones Industrial Average broke 11,011.90 today.  The is the first time the average has exceeded 11,000 since June 7, 2001.

What does this mean?  Nothing really, people just like to anchor to round numbers.  As a value investor, it just means that stocks are more expensive to buy.  It also makes finding wide moat stocks selling at a margin of safety all that much harder to find.

2 thoughts on “Dow Breaks 11,000

  • January 11, 2006 at 1:15 pm

    It’s not really 11,000 *dollars*
    That’s not how the indices are calculated, just thought to mention

  • January 12, 2006 at 8:42 pm

    Thanks for that advice. I would never consider adding a $ to a price index number, so I guess the same logic applies to stock indexes. I’m updating this entry to remove the $’s.

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