w w ll co he Ge tA T w m m The Dick Davis Dividend he Ge tA ll co Straight Talk on Making Money from 40 Years on Wall Street w w w T Dick Davis John Wiley & Sons, Inc ffirs.indd v 10/12/07 11:58:25 AM m tA ll co Ge he w T w w ffirs.indd viii 10/12/07 11:58:26 AM m Additional Praise for The Dick Davis Dividend (continued from back cover) tA ll co “Dick Davis has been around longer than you or I; he has seen it all, heard it all, and absorbed the lessons of a life in investing with finesse and skill The Dick Davis Dividend distills down this wisdom into a smooth, satisfying, and profitable brew that all investors would well to imbibe.” —William Bernstein, author of The Four Pillars of Investing w T he Ge “One heck of a book.Three things surprised me about Dick Davis’ new book Surprise number one, Davis, unlike most people in this business, is a very good writer Surprise number two, his book contains an absolutely staggering amount of useful and well-researched information Davis really knows the investment business Surprise number three, Dick Davis and I attended the same high school in NYC, Horace Mann.” —Richard Russell, Publisher of Dow Theory Letters w w “The year 1982 witnessed two great events: The great bull market in stocks took off, and Dick Davis launched the most successful newsletter digest in the world Over the years, Dick has sifted through the wisdom (and lack thereof ) of more financial advisors than anyone In The Dick Davis Dividend, he distills the best of it and brings it to you in one handy reference.” —Robert Prechter, ElliottWave.com “I found The Dick Davis Dividend to be a very comprehensive, broadbased explanation of the financial universe For the novice it is simply explained, easy to understand, and balanced It also gives investors a good understanding of active vs passive investing.” —Ned Davis, President, Ned Davis Research “A fine book and an insightful resource for investors.” —The Motley Fool ffirs.indd i 10/12/07 11:58:24 AM m Public Acclaim for Dick Davis On the Air tA ll co Dick Davis provided daily radio and television reports on the financial markets for many years (Chapter 1: Personal Background) Here are the responses from some of his listeners and viewers: Ge “You are rendering a truly remarkable service in providing an astonishing wealth of helpful information I travel a great deal and feel acutely deprived when I’m away from your broadcasts.” — Karl King, Miami w T he “Your TV and radio broadcasts are superb They are the best, most comprehensive, most intelligent, most meaningful well, the MOST! Your performance is impeccable and I thank you for your talent.” —Ernest Frank, Riviera Beach w “I tape your programs and listen to them a second time so I can absorb everything They are wonderful Please don’t retire.” —J Clay, Miami w “Without a doubt, this is the best market review I have ever heard at any time or anywhere in my 20 years experience as an investor The service you render to the public is immeasurable.” —Arthur de Ponceau, Miami “When my neighbor gets home from the office he sits in his car in his circular driveway until you are through imparting your wisdom His wife, friends, and cocktails all must wait Why aren’t you on a national hookup? As a traveler, I ask this for selfish reasons, not just so millions of other investors can profit.” —S.B Jaquith, Marquesas Keys ffirs.indd ii 10/12/07 11:58:24 AM “For investors who are baffled and befuddled by the vagaries of the market, your down to earth explanations are truly a ‘beacon in the wilderness.’ ” —Harriet Lapidus, Miami m “I was the national Financial Editor for the Hearst newspapers Your radio and TV reports are almost better than reading The Wall Street Journal I don’t recall anything as good on the New York airwaves You should be heard nationally.” —Julius Berens, Miami Beach tA ll co “I think half the tenants in my condominium would sell their radio and TV sets if they couldn’t hear Dick Davis.” —Irma Muskin, Bal Harbour Ge “I have traveled all over the United States I know of no city in the country that has an in-depth market report either on radio or TV that comes anywhere close to matching yours.” —Bert Jones, Lake Worth w T he “I deeply appreciate and greatly admire your reporting Never in 30 years as an investor have I heard anyone who can say so much so clearly, so succinctly, in such limited time on a complex and many-faceted subject.” —William Golden, Orlando w w “I listened to your broadcast while in Nassau It is the best reporting I have ever heard anywhere in New York or elsewhere You have my enthusiastic congratulations.” —Samuel Kingsley, Kingsley, Boye & Co., Member NYSE “Yours is a priceless service.” —Marion Blue, North Miami “A group of us Palm Beach widows get together for dinner and bridge several evenings a week We stop everything, even chatter, when your TV and radio shows come on We wouldn’t miss it.” —Marylou Hardy, Palm Beach ffirs.indd iii 10/12/07 11:58:24 AM “I don’t think you can fully realize how much you are appreciated by novice and sophisticated investors alike.” —Henry Hill, Miami “I listened to you while vacationing in Jamaica Yours is by far the best financial program I have ever heard—and I’m in the business.” —Les Pollack, Reynolds & Co., NY tA ll co m “Your commentary on the market is just fabulous My whole family is geared to mom listening to Dick Davis Everyone knows to be quiet while you’re on.” —Grace Sewers, Miami “Your broadcasts are the greatest—which is why Dick Davis is a household word all over Florida Everyone with any interest in the market listens to you.” —Eve Cassady, Surfside he Ge “I am an ardent admirer of your splendid broadcasts and your painstaking research No one compares with you.” —Bunny St Ivan, North Bay Village w T “The organization and presentation of your broadcasts is superb They represent a vital service to thousands of investors like myself.” —Fred Garlick, III, Stuart w “Yours is an invaluable service—the best in the country How did we get along without you?” —L Schoch, Fort Lauderdale w “You are doing a magnificent job.” —Mrs John Boccafogli, Fort Lauderdale “Yours are the best organized and meatiest reports I have listened to anywhere, either radio or TV.” —Thomas Wells, Hobe Sound ffirs.indd iv 10/12/07 11:58:25 AM m The Dick Davis Dividend he Ge tA ll co Straight Talk on Making Money from 40 Years on Wall Street w w w T Dick Davis John Wiley & Sons, Inc ffirs.indd v 10/12/07 11:58:25 AM Copyright © 2008 by Dick Davis All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada Wiley Bicentennial Logo: Richard J Pacifico tA ll co m No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions Ge Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages w T he For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic formats For more information about Wiley products, visit our Web site at www.wiley.com w Library of Congress Cataloging-in-Publication Data w Davis, Dick, 1928The Dick Davis dividend : straight talk on making money from 40 years on Wall Street / Dick Davis p cm Includes index ISBN 978-0-470-09903-2 (cloth) Investments Stocks Portfolio management Investment analysis I Title HG4521.D137 2008 332.63'22—dc22 2007023237 Printed in the United States of America 10 ffirs.indd vi 10/12/07 11:58:25 AM w w w T he Ge tA ll co m If she’s not bringing me her homemade applesauce with raisins, meatloaf, or a Costco rotisserie chicken, she’s thinking of other ways to make the life of her live-alone brother happier, healthier, and easier.This book is dedicated to my unwavering twin sister, Ellie, the one person on this planet who is thinking of my welfare every single day She sweated out this book with me for three years One of her happiest days was when I finished: “Now you can go out and have some fun.” Happy when I’m happy and sad when I’m sad, my twin sister has been a lifelong blessing ffirs.indd vii 10/12/07 11:58:26 AM ... Library of Congress Cataloging-in-Publication Data w Davis, Dick, 192 8The Dick Davis dividend : straight talk on making money from 40 years on Wall Street / Dick Davis p cm Includes index ISBN 978-0-470-09903-2...m The Dick Davis Dividend he Ge tA ll co Straight Talk on Making Money from 40 Years on Wall Street w w w T Dick Davis John Wiley & Sons, Inc ffirs.indd v 10/12/07... either radio or TV.” —Thomas Wells, Hobe Sound ffirs.indd iv 10/12/07 11:58:25 AM m The Dick Davis Dividend he Ge tA ll co Straight Talk on Making Money from 40 Years on Wall Street w w w T Dick