jump to navigation

Looking back at the experts predictions. February 4, 2009

Posted by shaferfinancial in Finance.
Tags: ,
trackback

As regular readers know, I point out that rarely do folks take a look back at “experts” advice to see how they did.  The other day I came across an article written in December of 2002, by well known financial expert James Glassman, where he suggested three actively managed mutual funds going forward.  Let’s take a quick look at how good his advice was.

The three mutual funds were:

The Torray Fund (TORYX)

Jenson Fund (JENSX)

Dodge & Cox Stock (DODGX)

If you had invested $10,000 in each of these funds on Jan 14, 2000 (long enough time frame to account for short term fluctuations and both up and down markets) you would have:

$4,557 in the Torray Fund

$8,305 in the Jenson Fund

$6,650 in the Dodge & Cox Stock Fund

Compare this to if you invested that same $10,000 in the low expense indexed Vanguard S & P 500 Fund:  $5,818

Or if you invested that same $10K in Berkshire Hathaway: $17,700 or

If you invested that same $10K in Heath Care REIT (HCN) and reinvested dividends: $33,900 

Now why are you listening to those “experts?”

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: