This week on our Masters in Business podcast, we speak with Tom Dorsey, founder of Dorsey Wright & Associates. Dorsey is the author of Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, now in its 4th edition.* DWA was a staple to the broker community in the 1990s and 2000s. (DWA was recently sold to the Nasdaq for $240 million dollars).
In our conversation, he discusses beginning his career as a stock broker with Merrill Lynch Pierce Fenner & Smith at the depths of the bear market in 1974, and the serendipitous circumstances which led him into P&F charting. Dorsey noted the only way to manage a clear asset management strategy is based on objective, unemotional data.
Tom Dorsey has spent much of his career popularizing the “point & figure” form of technical analysis. He is also highly regarded for his technical work on relative strength and momentum. Those two factors are the underlying strategies for numerous models, SMAs, and ETFs (at Invesco) running about a $15 billion in assets. The largest of these, PowerShares DWA Momentum ETF (PDP), has $1.4 billion in assets.
* He also wrote Tom Dorsey’s Trading Tips: A Playbook for Stock Market Success, as well as Thriving as a Broker in the 21st Century and Commodity Strategies: High-Profit Techniques for Investors and Traders.