Dogs of the Dow

Biological Parallel

After forest fires, scorched 'dead' trees often resprout from epicormic buds—dormant meristems beneath bark that activate post-disturbance. These apparent casualties become vigorous growers because their established root systems deliver nutrients to new shoots faster than pioneer seedlings can establish. O'Higgins' Dogs of the Dow applies this resprouting strategy: buy temporarily depressed blue-chips (scorched but alive) with strong fundamentals (root systems), expecting mean reversion to outperform high-flyers starting from scratch.