Apple Stock Price Is Too High for Dow Industrials, Bespoke Says
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Putting Apple Inc. in the Dow Jones Industrial Average would mean the benchmark gauge would get 22 percent of its value from the iPhone maker, too much influence even for the world’s largest company, according to Bespoke Investment Group LLC.
Apple, trading at about $420, would have the largest weighting in the 30-company measure because Dow companies are ranked by stock price, not market value. Replacing Kraft Foods Inc. with the Cupertino, California-based company would drive International Business Machines Corp. down to 9.2 percent from