Charlz Henry Dou

Charlz Henry Dou

American financial journalist and founder of Dow Jones
Date of Birth: 06.11.1851
Country: USA

Biography of Charles Henry Dow

Charles Henry Dow was an American financial journalist and the founder of Dow Jones & Company, a financial news service. He was born on November 6, 1851, into a family of farmers. At a young age, he left the farm and started working for a prominent provincial newspaper when he was just 18 years old. However, his path to success truly began in 1875 when he joined "The Providence Star" and started writing about economic topics. He became the pioneer of financial journalism and not just the famous Dow Jones Index. It seems that those who claim that a talented person is talented in everything are right. One discovery leads to another.

As Dow initially wrote about the search and trading of precious metals, his interest in finance grew, and he became more involved in analyzing the behavior of stocks of gold-mining companies. However, Dow's active mind couldn't content itself with just reporting events on the stock exchange, especially as his knowledge in this field was constantly expanding. He knew that his expertise would eventually allow him to become a direct participant in the market. This is exactly what happened when Dow and his partner Edward Jones opened their own business, which revolutionized the American stock market.

In 1883, the first edition of the "Customer's Afternoon Letter" was published, containing a summary table of stock price changes for the day. At the end of the 19th century, this information was considered almost nonsensical, as companies preferred less transparency. Although such analysis was conducted in brokerages, it was inaccessible to the general public. Fortunately, Dow changed the situation. Initially, the information for the bulletin was obtained through romantic means such as eavesdropping and gaining the trust of traders. However, the manipulators of the stock exchange soon realized the benefit of publishing such information: by making public statements about price changes, they could influence the movement of stocks in their favor. Eventually, the plain bulletin transformed into "The Wall Street Journal!"

It seemed like Dow had achieved everything he needed: he had changed the fundamental principles of the stock exchange and could live a peaceful life. However, Charles Dow's thirst for knowledge and progress was insatiable. He believed that by comparing information about price changes of leading (market-shaping) stocks, he could derive a single index for the stock market. And that's exactly what he did. Assigning equal weight to each stock and calculating the percentage changes in price, he brought the prices to the average value, thus creating the famous Dow Jones Index. Initially, there were two indexes: one for railroad stocks and another for all other stocks. The latter became the authoritative indicator of the financial market for many years.

Charles Henry Dow, the journalist who opened the world of American stocks, was a person with a unique mind and exceptional talent in economics. He belonged to the remarkable group of individuals whose intelligence, talent, and innate ability to anticipate the future allowed them to single-handedly change history.