The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer-goods editor and analyst Austin Smith discuss topics around the investing world.

Investors might not realize how skewed the Dow is toward certain components. Thanks to the Dow's price-weighted methodology, IBM has the highest weighting of any stock. Its price changes move the Dow almost double the next highest company. In fact, IBM is weighted in the Dow more than Microsoft, HP, Intel, Cisco, Verizon, and AT&T combined. That's more influential than all other tech and telecom stocks! To see Eric's analysis of what IBM's weighting means for investors and ways to broaden your exposure to other tech companies, check out the video.

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At the time this article was published Austin Smith owns shares of Intel. Eric Bleeker owns shares of Cisco Systems. The Motley Fool owns shares of IBM, Intel, and Microsoft. Motley Fool newsletter services recommend Intel and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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andshd

i have studied the dow jones and ibm and the following is my opinion only. since ibm is part of the dow jones
along with 29 other stocks its not ibm leading the way for the dow jones. the dow will move in the direction
the majority of the 30 stocks. or part of. ibm at times will move in the opposite direction. in 20 yrs of
charting there is a ratio between the two. no i wont give that. and no i did not hear ur video . i have no idea
whats in it. all i do know is what im saying to be true. i have never heard of the dow jones spliting,
if ibm leads the way then all 29 will do the same. no its 29 leading ibm. j.k. andshd@aol.com

May 16 2012 at 8:34 PM Report abuse rate up rate down Reply