More than 100 years since his passing Charles H. Dow's legacy can still be seen. His name has become a fixture in the American financial landscape as millions of investors track the Dow Jones Industrial Average. The Wall Street Journal, which he first published in 1889, is found in hundreds of thousands of businesses worldwide. And his editorials, written in the early years of the Journal, were the basis from which a surprisingly effective system of market analysis was derived, popularly known as the Dow Theory. Nonetheless, though both the Dow's original writings and the theory which bears his name are valuable tools in market analysis, there is little relationship between them. The modern Dow Theory is clearly effective, and has been shown to beat "buy and hold" by a wide margin, but it cannot be said to truly reflect Dow's original work.

Born in Sterling, Connecticut on November 6, 1851, Charles Dow's early life appears to have been fraught with tragedy. His father died when he was only six years old, leaving the management of the family farm to his mother. Two elder brothers also passed away in childhood. Uninterested in the arduous routine of farm life, Dow left the family homestead in his teens and struck out on his own. Though little is known about these early years, he apparently found jobs in a wide variety of fields before settling on the career of journalist.

In 1872 Dow joined The Springfield Daily Republican of Springfield Massachusetts. Published out of a relatively small town, the Republican nonetheless was a widely circulated and well regarded daily. The paper's editor, Samuel Bowles, is generally ranked among the great newspapermen of all time. Though exceptionally careful and conscientious, once a story was cast in print Bowles was adamant that the paper's word stand without apology. Bowles was notorious for refusing to print corrections. A story once circulated about a man who had been wrongly reported as dead by the Republican. He appeared at Bowles' office and demanded that a correction be made. Bowles politely informed him that it was not the policy of the paper to make corrections. "But I am not dead, as you can see," said the man. Bowles thought for a moment then replied "We cannot print a correction, but as your case demands some attention, we will bring you back to life by putting your name in the birth column." (James Melvin Lee, History of American Journalism, p. 402)

The Republican never hesitated to take a political line, and was known for its battles with General Ben Butler, Dudley Field, Jay Gould and Oakes Ames. Writers taking on such influential figures obviously had to be prepared for battle, and a firm grasp of all manner of economic and political policy was needed. No doubt it was here that Charles Dow honed his considerable analytical skills. The Republican had a reputation for a terse and consistent style, derived in large part by the example set by Bowles. The consistency of prose makes it difficult to determine which writer produced any given article, and so it is naturally difficult to know which of the articles appearing in the Republican belong to Charles Dow. One can only speculate how his views might have evolved during his tenure. Nonetheless there is no doubt that the Republican offered Dow a first rate education in journalism, and a tremendous boost to his career.

After a five year stay in Rhode Island where he worked for the Providence Star, Dow moved to New York City. Since he had worked under Bowles at the Republican, and the equally esteemed Danielson at the Star, Dow had little difficulty breaking into New York's competitive field of journalism. He secured a position at the Mail and Express shortly after arriving in New York. Having done a well received series on Colorado's mining boom while at the Star, Dow sought work as a financial reporter, specializing on the mining firms. He quickly built a reputation as an able reporter capable of distilling tough financial issues to their essentials. This was considered a rare talent.