Hi folks....this is somewhat of an adjunct to a thread started by Hiyield007 as he was speaking of the virtues of the healthcare sector.
This has been something which has illustrated some items quite surprising to me...but perhaps you may differ.
A. What are some of your longest held positions, why have those funds maintained their position in your portfolio, and what can you conclude from that experience?
B. Looking ahead 10 years, what in your portfolio may be included in your answer to this same question?
To start....as noted within Hiyield007's thread, VGHCX and VHCOX are my gray-beards, with just over 10 years in the portfolio. The odd thing is, in my memory, I never would have classified them as top performers within the MF world...but they indeed HAVE been some of my top performers over that span. That, to me, speaks of consistency of performance of the managers. They may never be the high fliers, but are relatively consistent in their approach and execution. I'd love to take full credit for my astute selection process, but I do need to balance this out with my clunkers.
What MAY be a long-term holding in my portfolio? That's easy (at the moment). POAGX.
Press.
Comments
Artisan Small Cap Value (ARTVX) - since '97 or '98. I sold my shares of Artisan Small Cap (ARTSX) pretty much as soon as SCV opened and transferred the money. Likewise, Artisan International Value (ARTKX) - since '02, when I did the same thing with my Artisan International (ARTIX) holdings.
From which I recall that I really do rather prefer value to growth and from which I've concluded that active management can work even though there are going to be stretches of explicable or inexplicable weakness.
I suspect that my cash management accounts (RPHYX and RPSIX) are the most secure. Beyond that, it's hard to say. In a decade I'll be able to start thinking about ratcheting back on work which might suggest a more conservative allocation with fewer stock funds. But it's also possible that in a decade stock valuations will be compelling, so ...
Ambivalently,
David
p.s. wasn't thinking about the retirement account. That would likely be Fidelity Low-Priced Stock (FLPSX), around '92 or '93.
We've got some DTE that came from her dad that we've kept, but for funds it would be PRPFX.
peace,
rono
Next: MAPIX. (2009.)
Great performers, great fund family--- though customer serv. through BNY Mellon sucks. These picks illustrate my preference for foreign stuff, particularly in Asia. In 10 more years? I would not be surprised to look back and see that I still own these two.
Since the '08 Crash I've added dom. bonds and EM bonds and a Large and a Small cap funds: DLFNX, PREMX, MAPOX, MSCFX. That last one is the dom. small-cap. Doing quite well, even compared to my previous dom. sm.-cap: PRSVX. And that TRP fund has a very good history, indeed.
VGHCX - Since 80s. Bought at $30; last close a whisker short of $160. Yippee!
ACRNX - Since early 90s. Inertia.
ARTMX - When fund managers left Strong and started Artisan, I went with them. Like David, I bought, then sold, Artisan Small and International, putting the proceeds (unlike David) into ARTMX and Mid Value.
Value bent, pretty obviously.
TBGVX (Burton Malkiel's influence)
VISVX
B) TIBIX, MAPIX, MSMLX and WAEMX, all dependent on the permanence of the funds investing strategy and the current managers. Truthfully I don't love any of my investments enough to ever say never but these are good bets to stick around.
b. no idea what I will change or do this year much less 10 years out. Right now flexible funds such as FPACX, WPOIX ,IVWIX and MFLDX along with small/mid caps, infrastructure, EM Markets and health care funds dominate our portfolios.
Art
I've consolidated my older 401k accounts in 2011 and so the earlier record is lost. But I brought FDGRX and FLPSX from 401k to IRA which I had invested in prior to first investment in CIPSX.
After those MAPIX, WAEMX, FMIMX, FRIFX are some of my older positions.
Regards,
Ted
I expect to hold these forever. I've also reduced my turnover to keep my income down so my early ss doesn't get taxed as most of my investments are in taxable accounts. For better or worse, I'm happy with my current portfolio.
PRPFX and OAKBX were 10 year holdings until I recently traded out of them.
PASDX would probably be a 10 year holding (rounding up by a month or two) if I had not traded it in for its close cousin PAUDX several years ago.
I'm in a similar situation - having gotten a couple of funds from parents (one was a fund purchased in the 50s that was gifted to me years later; the other was purchased in the early 70s and went through a UGMA account). In each case, really small amounts, and dividends not reinvested.
I sold the former off when it was over 50 years old. Still holding the latter - it started out as One Williams Street, and I still have the fund certificate for it somewhere. Here's an image of a certificate for sale.
According to the seller, the fund was at one time the largest in the country. Originally a Lehman fund, the fund was renamed Lehman Investor fund around 1984. (Lehman had merged with Kuhn, Loeb & Co. in 1977 to become Lehman Brothers Kuhn Loeb Inc., and was acquired by Shearson/American Express in 1984 to become Shearson Lehman Brothers.) The fund retained this name even as the acquisitions continued, with EF Hutton being acquired for a song and the company becoming Shearson Lehman Hutton in 1988. (The name EF Hutton was recently resurrected by a former Hutton manager; are you listening
In 1990, the fund company Lehman Management Company was separated from its parent, being sold by Shearson Lehman Hutton to Salomon Bros. The fund was renamed Salomon Brothers Investors Fund, Inc. (I'm guessing that it was at this time the management company was renamed Salomon Bros. Asset Management.) In 1997, Travelers (not yet merged with Citibank, but owning Smith Barney) acquired Salomon Bros. Travelers merged the brokerage with Smith Barney to create Salomon Smith Barney. The fund, however, retained its Salomon Bros. moniker.
In 1988 Citicorp and Travelers merged to form Citigroup. In 1991-1992, the Salomon part of Salomon Smith Barney is dropped, and the brokerage becomes simply Smith Barney. Salomon Bros. is retained as the fund family name, though "Value" is added as part of the fund name in 1991. Around 2005, Citigroup and Legg Mason swap assets, with Legg Mason getting Citigroup's mutual fund business (Salomon Bros. and Morgan Stanley funds). In 2006, the fund family is renamed Legg Mason Partners.
In 2009, Legg Mason does some internal resturcturing, and renames some of its funds Legg Mason Clearbridge. In 2010, the fund name is tweaked, becoming Legg Mason Clearbridge Large Cap Value. At the beginning of this year (according to the SAI), the Legg Mason part of the name was dropped. Throughout this long journey, the fund has been well managed (though participating in the 1993 fund scandals), with low expenses and very low turnover. I've never bought, sold, or reinvested a dividend, however.
So when I read posts about holding funds for a decade, I have to smile.
Looking ahead, I'd like to think I'll hold those two plus BBTEX, MAPIX, and a Pimco combination in bonds for a very long time.
MEURX 1996 when Michael Price started it. Have Stayed with it after Franklin Templeton bought it.
BSCFX 1997
BWG
I resisted as long as I could, but so many of you contributed that I felt obligated to participate from peer pressure considerations alone.
My current senior holding is the Dodge and Cox Balanced (DODBX) mutual fund. I have held the fund without interruption for about 26 years. I still own it.
I have been more than pleased with its overall performance. During my holding period, DODBX delivered a 12.07 % annual average return with a 13.24 % volatility.
That performance beat expectations, especially when contrasted to the S&P 500 (an unfair comparison) which delivered a 10.05 % annual return with a volatility just north of 15 % for that same timeframe.
All values cited include reinvested dividends.
Dodge and Cox was not my first venture into the mutual fund industry. I bought Fidelity’s Magellan fund sometimes in 1984.
I primarily was encouraged to invest in mutual funds by Peter Lynch’s stellar record in earlier years. As a neophyte, I was chasing performance; I was swayed by hot money. That was one of my first lessons in the mutual fund industry. Performance is not persistent.
Peter Lynch’s outsized performance did not persist. In the years just before his retirement around 1990, he struggled to capture equity market rewards. Lynch suffered a two stage career. In the first part he generated scintillating outcomes; in the second part he regressed-to-the-mean. The magic was gone. I was with Magellan fund during the epic struggle phase.
I finally sold Magellan when Fidelity decided to fire Jeff Vinik, who was a second generation replacement for the Famous One, after Vinik made a poor timing decision by selling equity positions and going into the bond market. At that point, Fidelity had decided to honor a consistent fund investment policy rule that they claimed Vinik violated.
There’s a lesson there too since Vinik later developed a successful Hedge Fund management career while Fidelity failed to find and assign a superior manager to their Magellan product.
Best Wishes on April Fool’s Day.
Art...as with you, PCVAX is a 401K choice, which I've held for about 7 years. Planning retirement and a shift of 401K to an IRA, I find that the PCVAX performance is not to be sneezed at....frankly, I am flummoxed as to what to replace it with. Of course, that is a future thread.
You may not need to rollover your 401k after retirement if you like the choices. Many employers allow you to leave your assets behind. However, IRA is likely to give you more choices unless your 401k plan has a self directed brokerage option.
The retail equivalent of PCVAX is PNVDX. PSVIX is institutional shares. The fund is currently closed to new investors. I used to own PNVDX some time ago.
I recently added VVPSX in this area.
VVPSX was mentioned in a thread mid-February on mid/small-caps....and I took note and have been tracking this with interest.