Key Points
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The Dow Jones Industrial Average (DJIA) has undergone 54 adjustments since its inception in May 1896.
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As of July 10, 2023, Nike’s share price closed at $44.37, the lowest in the Dow.
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Berkshire Hathaway, trading at approximately $494 as of July 10, 2023, could replace Nike in the Dow.
The Dow Jones Industrial Average is a key market index and is expected to undergo its next adjustment soon, potentially removing Nike, which has underperformed since joining in September 2013 with a 29% gain compared to the Dow’s 242% increase. Nike’s low share price and minimal influence make it a candidate for replacement.
Berkshire Hathaway, currently a trillion-dollar conglomerate led by Warren Buffett, is positioned as a likely successor, as its Class B shares would fit the index’s pricing structure. Berkshire has a diverse investment portfolio and has outperformed the S&P 500 over the years.
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