My Favorite Mutual Fund
Posted February 14th, 2008
My Favorite Mutual Fund
Most of my long time clients own Dodge & Cox Stock Fund. Over the past ten years this fund has averaged 11 ½% returns. This has exceeded the average market return during this same period by 5 ½%. What is truly remarkable is that this fund has below average risk, and during the three horrendous years of 2000, 2001 and 2002 it actually made money. In the year 2000, their return was 16%, which beat everyone else by 25%. In the year 2001 their return was 9%, which beat everyone else by 21%; and in 2002 they loss 11%, which exceeded everyone by 11%.
Sadly, Dodge & Cox stopped accepting new money four years ago. Funds will close when they are successful and begin attracting too much money. If they become flooded with money it becomes difficult to stay ahead of the averages.
This week Dodge & Cox opened itself to the opportunity for you to invest again. They stated that they see opportunities to make money in the stock market right now and want to jump while stocks are at a discount. This is great news for my clients in two ways; I can begin to move clients into the fund that has previously been shut out, and the management of this great fund feels that it is time to start buying stocks.
I have attached a link to an audio file to hear another commentary on this great management company.
If you are unable to hear the video, you may need to "Download a player" for the audio player on this webpage. Just follow the instructions at the bottom of the MarketWatch window.
Sincerely,
Ron Dickinson, CPA, CFP®, MPA-tax