Follow “The Foolish Four.” ![Does Foolish Four Work In Indian Equity Market](https://encrypted-tbn0.gstatic.com/images?q=tbn%3AANd9GcRfGCS9UXFFt2P4YWW5Ixvc-njbDGqBhWU4Ag&usqp=CAU)
In the mid-1990s, the Motley Fool
website (and several books) hyped the daylights out of a tech-
nique called “The Foolish Four.” According to the Motley Fool, you
would have “trashed the market averages over the last 25 years”
and could “crush your mutual funds” by spending “only 15 min-
utes a year” on planning your investments. Best of all, this tech-
nique had “minimal risk.” All you needed to do was this:
1. Take the five stocks in the Dow Jones Industrial Average with
the lowest stock prices and highest dividend yields.
2. Discard the one with the lowest price.
3. Put 40% of your money in the stock with the second-lowest
price.
4. Put 20% in each of the three remaining stocks.
5. One year later, sort the Dow the same way and reset the
portfolio according to steps 1 through 4.
6. Repeat until wealthy.
Over a 25-year period, the Motley Fool claimed, this technique
would have beaten the market by a remarkable 10.1 percentage
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