Tom Dorsey on Point-and-Figure Charting

Barry Ritholtz is a Bloomberg View columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He blogs at the Big Picture and is the author of “Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.”
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This week on our Masters in Business podcast, we speak with Tom Dorsey, co-founder of Dorsey Wright & Associates, a firm specializing in technical analysis that was bought last year by Nasdaq for about $225 million.

Perhaps best known for popularizing the point-and-figure form of technical analysis, which is designed to indicate when to enter or exit the stock market, Dorsey is also highly regarded for his work on relative strength and momentum. Those two factors are the underlying strategies for numerous investment models. Among other things, we discussed smart beta and the many ways equity indexes can be constructed. Dorsey, who started his career as a stock broker in the depths of the bear market in 1974 at Merrill Lynch Pierce Fenner & Smith, is the author of "Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices."

 

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Barry Ritholtz at britholtz3@bloomberg.net

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James Greiff at jgreiff@bloomberg.net