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.”