http://www.cyrillicpartners.com/2007/11/27/justification-for-ditching-google/ An Economics Blog by Volha Baranava and Alexander Haislip Thu, 20 Nov 2008 13:59:31 +0000 http://wordpress.org/?v=2.3 http://www.cyrillicpartners.com/2007/11/27/justification-for-ditching-google/#comment-23 Cyrillic Partners » Nasdaq’s Internet Index Wed, 28 Nov 2007 05:12:32 +0000 http://www.cyrillicpartners.com/2007/11/27/justification-for-ditching-google/#comment-23 [...] The difference is important. The Dow Jones Industrial Average, for example, is a price-weighted average portfolio, where the degree of holding represented in the portfolio is proportional to each company’s share price. The Dow-style portfolio has four times as much invested in stock XYZ than ABC just because XYZ’s share price is four times that of ABC and XYZ dominates the average. For an Internet index, that spells Google (see why V ditched the stock). [...] […] The difference is important. The Dow Jones Industrial Average, for example, is a price-weighted average portfolio, where the degree of holding represented in the portfolio is proportional to each company’s share price. The Dow-style portfolio has four times as much invested in stock XYZ than ABC just because XYZ’s share price is four times that of ABC and XYZ dominates the average. For an Internet index, that spells Google (see why V ditched the stock). […]

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