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Nike may be removed from the Dow, and Buffett’s Berkshire is the perfect alternative

2026-07-15·newswire-us-stock-101457

Nike may be removed from the Dow, and Buffett’s Berkshire is the perfect alternative.

For more than 130 years, The Industrial Average (Dow) has always been one of Wall Street's most closely watched indicators of market sentiment. The index originally included only 12 industrial stocks and now includes 30 leading multinational companies with diverse businesses. The Dow itself is a dynamically adjusting index.

Since its inception on May 18, 1896, constituent stock transfers have occurred 54 times.

Now the index may usher in a new round of adjustments: (NYSE: NKE) is likely to be eliminated, while the trillion-dollar conglomerate Berkshire Hathaway (NYSE: BRKA/BRKB) is the most Nike underperforms as Dow component S&P Dow Jones Indices will consider multiple criteria when adjusting the components of the Dow Jones Industrial Average, with stock price being the core consideration.

The composite index is compiled using market capitalization weighting, but the Dow Jones Industrial Average is price-weighted. For example: Although Nvidia is the world's largest listed company by market capitalization, it is limited by its stock price of approximately US$211 and ranks only 20th among the 30 Dow Jones components.

Nike's closing share price on July 10 was only $44.37, the lowest stock price among the 30 components of the Dow Jones Industrial Average, and had minimal impact on the index's trend. In addition to being underweighted, Nike has long underperformed the broader market since being included in the Dow in September 2013.

Including the stock, the Dow is up 242% so far, while the sportswear giant is up just 29%. The advancement of Nike's direct sales strategy fell short of expectations, and at the same time it damaged the originally profitable and stable wholesale channel partnership.

While there is room to repair related operating issues, S&P Dow Jones Indices is unlikely to keep a company in the midst of a multi-year business repair cycle on the Dow list. There may be an opportunity to be included in the Dow Jones Industrial Average Eliminating Nike doesn't mean a retail company has to be replaced.

There are currently 6 technology stocks in the Dow. Adding a consumer-oriented conglomerate will make the distribution of index industries more balanced. Berkshire is essentially a financial group (wholly-owned insurance company GEICO), holding an investment portfolio of nearly US$349 billion.

At the same time, it wholly-owned controls about 60 entity companies. Its business covers retail, railways, insurance, manufacturing, catering, energy and other tracks, which can enrich the weight of the index consumption and real industry sectors.

A few years ago, Berkshire was not a candidate for inclusion in the Dow: its outstanding Class B shares (BRKB) had a chronically high share price, and the Dow historically had very few high-priced triple-digit constituents. But now there are only 3 components of the Dow with stock prices below $114, and only 10 stocks with prices below $211.

As of July 10, Berkshire’s Class B stock price was $494, fully adapting to the current index stock price structure. This trillion-dollar conglomerate, built by retired Buffett, has significantly outperformed the S&P 500 over the long term. During Buffett’s sixty years at the helm, Berkshire’s stock price has increased by a cumulative 6.1 million%!

The only obstacle to Berkshire's inclusion in the Dow is the massive $349 billion investment portfolio mentioned earlier. Berkshire has a heavy position in many existing Dow Jones Industrial Average stocks, including , American Express, Alphabet ( parent company).

If included, it will further intensify the index's concentration risk on a small number of stocks. Despite these concerns, Berkshire would still be the most logical replacement should S&P Dow Jones Indices decide to eliminate Nike. Is this the right time to buy Berkshire Hathaway?

You may wish to refer to the following before buying this stock: The stock advisory analyst team of Fool Investment Network has selected the 10 most worthy long-term bull stocks at the moment, and Berkshire was not on the list. These ten stocks have long-term growth logic and are expected to reap huge returns in the future.

Give two historical cases: December 17, 2004 When he was selected into the list, he invested US$1,000 and now has assets of US$398,160; Nvidia was included in the list on April 15, 2005. It invested US$1,000 at that time and now has assets of US$1,249,202. The outstanding long-term returns are why this list is widely recognized by investors.

This stock pick portfolio has a unique advantage, having outperformed the S&P 500 by four times over the long term. Subscribe to the stock advisory service to get the latest top ten recommended stocks and join the long-term investment community.

#Stocks #Nvidia #Google #Earnings #SP500

Full text

Nike may be removed from the Dow, and Buffett’s Berkshire is the perfect alternative

For more than 130 years, The Industrial Average (Dow) has always been one of Wall Street's most closely watched indicators of market sentiment. The index originally included only 12 industrial stocks and now includes 30 leading multinational companies with diverse businesses. The Dow itself is a dynamically adjusting index. Since its inception on May 18, 1896, constituent stock transfers have occurred 54 times. Now the index may usher in a new round of adjustments: (NYSE: NKE) is likely to be eliminated, while the trillion-dollar conglomerate Berkshire Hathaway (NYSE: BRKA/BRKB) is the most Nike underperforms as Dow component S&P Dow Jones Indices will consider multiple criteria when adjusting the components of the Dow Jones Industrial Average, with stock price being the core consideration. The composite index is compiled using market capitalization weighting, but the Dow Jones Industrial Average is price-weighted. For example: Although Nvidia is the world's largest listed company by market capitalization, it is limited by its stock price of approximately US$211 and ranks only 20th among the 30 Dow Jones components. Nike's closing share price on July 10 was only $44.37, the lowest stock price among the 30 components of the Dow Jones Industrial Average, and had minimal impact on the index's trend. In addition to being underweighted, Nike has long underperformed the broader market since being included in the Dow in September 2013. Including the stock, the Dow is up 242% so far, while the sportswear giant is up just 29%. The advancement of Nike's direct sales strategy fell short of expectations, and at the same time it damaged the originally profitable and stable wholesale channel partnership. While there is room to repair related operating issues, S&P Dow Jones Indices is unlikely to keep a company in the midst of a multi-year business repair cycle on the Dow list. There may be an opportunity to be included in the Dow Jones Industrial Average Eliminating Nike doesn't mean a retail company has to be replaced. There are currently 6 technology stocks in the Dow. Adding a consumer-oriented conglomerate will make the distribution of index industries more balanced. Berkshire is essentially a financial group (wholly-owned insurance company GEICO), holding an investment portfolio of nearly US$349 billion. At the same time, it wholly-owned controls about 60 entity companies. Its business covers retail, railways, insurance, manufacturing, catering, energy and other tracks, which can enrich the weight of the index consumption and real industry sectors. A few years ago, Berkshire was not a candidate for inclusion in the Dow: its outstanding Class B shares (BRKB) had a chronically high share price, and the Dow historically had very few high-priced triple-digit constituents. But now there are only 3 components of the Dow with stock prices below $114, and only 10 stocks with prices below $211. As of July 10, Berkshire’s Class B stock price was $494, fully adapting to the current index stock price structure. This trillion-dollar conglomerate, built by retired Buffett, has significantly outperformed the S&P 500 over the long term. During Buffett’s sixty years at the helm, Berkshire’s stock price has increased by a cumulative 6.1 million%! The only obstacle to Berkshire's inclusion in the Dow is the massive $349 billion investment portfolio mentioned earlier. Berkshire has a heavy position in many existing Dow Jones Industrial Average stocks, including , American Express, Alphabet ( parent company). If included, it will further intensify the index's concentration risk on a small number of stocks. Despite these concerns, Berkshire would still be the most logical replacement should S&P Dow Jones Indices decide to eliminate Nike. Is this the right time to buy Berkshire Hathaway? You may wish to refer to the following before buying this stock: The stock advisory analyst team of Fool Investment Network has selected the 10 most worthy long-term bull stocks at the moment, and Berkshire was not on the list. These ten stocks have long-term growth logic and are expected to reap huge returns in the future. Give two historical cases: December 17, 2004 When he was selected into the list, he invested US$1,000 and now has assets of US$398,160; Nvidia was included in the list on April 15, 2005. It invested US$1,000 at that time and now has assets of US$1,249,202.

The outstanding long-term returns are why this list is widely recognized by investors. This stock pick portfolio has a unique advantage, having outperformed the S&P 500 by four times over the long term. Subscribe to the stock advisory service to get the latest top ten recommended stocks and join the long-term investment community.

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