Mutual Funds

[ADinWaiting]

If you were looking to put $10,000 in a mutual fund which one would you choose?

[HawgWild]

One in a Roth IRA account. 

[HognotinMemphis]

If you were looking to put $10,000 in a mutual fund which one would you choose?

Half in YACKX and half in FPACX. Reinvest all dividends and cap gains distributions. In 10 years, you'll have doubled to tripled your money.

[Ash]

One in a Roth IRA account. 

Great start!

[ADinWaiting]

Half in YACKX and half in FPACX. Reinvest all dividends and cap gains distributions. In 10 years, you'll have doubled to tripled your money.

Thanks. Just trying to get a head start!

[ADAM_713]

I wouldn't.  Better off buying ETFs and selling them when everyone is happy and buying them when everyone is scared. 

[HognotinMemphis]

I wouldn't.  Better off buying ETFs and selling them when everyone is happy and buying them when everyone is scared.

If you want to make what the market makes and have no shot at doing better than the market, then maybe you consider ETF's. And if you want to trade rather than buy and hold, then follow this advice.

[AFWarrior83]

Do you have USAA? It's largly comprised of military (both prior and active). If so, the USAGX (precious metals and minerals) is a great choice. A roth IRA is the way to go, but they are limited to $5,000 annual contributions.

[ADAM_713]

If you want to make what the market makes and have no shot at doing better than the market, then maybe you consider ETF's. And if you want to trade rather than buy and hold, then follow this advice.

Not if you buy and sell.  95% of mutual funds cannot or will not beat the market either by prospectus or because the managers are paid to beat the bench mark.  Mutual Funds are designed to funnel money to fund companies.  I know, I used to work for one.  Granted if you only want to buy and hold, then look for a fund that is not style box driven by prospectus. 

[ADinWaiting]

I guess a better question might have been what should I do with the $10,000? Instead of what mutual fund. Are there better opportunities like just go buy some gold bars? Any and all opportunities or jokes are welcome.

[HognotinMemphis]

Not if you buy and sell.  95% of mutual funds cannot or will not beat the market either by prospectus or because the managers are paid to beat the bench mark.  Mutual Funds are designed to funnel money to fund companies.  I know, I used to work for one.  Granted if you only want to buy and hold, then look for a fund that is not style box driven by prospectus.

Apparently you did not review the two mutual funds I listed. They are not part of a fund family. They have very low expense ratios. They have long time managers that have beaten their benchmark indexes over 5 yrs, 10 yrs and longer. The S&P 500 ETF's have been beaten by both of these.

[ADAM_713]

Apparently you did not review the two mutual funds I listed. They are not part of a fund family. They have very low expense ratios. They have long time managers that have beaten their benchmark indexes over 5 yrs, 10 yrs and longer. The S&P 500 ETF's have been beaten by both of these.

Ya got me there, I didn't look through them at first.  I have actually used the FPA one, and they both look decent, but you won't convert me from what I originally said.   It really depends on when you bought and sold the SPY as to whether or not a fund can beat them.  If you do some technical analysis on buying in and selling off in portions a mainstream ETF you will beat the majority of funds.  You are talking about funds beating a static average, I am not.

[ADAM_713]

I guess a better question might have been what should I do with the $10,000? Instead of what mutual fund. Are there better opportunities like just go buy some gold bars? Any and all opportunities or jokes are welcome.

Do you have any high interest debt?  I woud pay that off first before I would invest.  If not put half of that 10,000 into something very stable like an ultra short duration bond fund, (I do use funds for bonds to clarify), put another quarter into CHY and the other quarter into SPY.  I would wait until we have some down days to do it.  CHY moves with the market, but also pays a high divi.  SPY is the market in general terms.  Sell them when you get the feeling that you have done really well and should start managing your own money. 

[HawgWild]

I guess a better question might have been what should I do with the $10,000? Instead of what mutual fund. Are there better opportunities like just go buy some gold bars? Any and all opportunities or jokes are welcome.

Open a Roth IRA. Contribute $5,000 into it for 2011 and the other $5,000 for 2012. Buy some CNP and/or NUE. Reinvest the dividend.

[ADinWaiting]

Open a Roth IRA. Contribute $5,000 into it for 2011 and the other $5,000 for 2012. Buy some CNP and/or NUE. Reinvest the dividend.

When I open a Roth IRA I'm assuming to just do it through a firm?

[HawgWild]

Open one in a Scottrade account and you'll save a bunch in fees.

http://www.scottrade.com/

[BILLYBOB]

Half in YACKX and half in FPACX. Reinvest all dividends and cap gains distributions. In 10 years, you'll have doubled to tripled your money.

Never heard of YACKX?? I think FPA is one of the best fund families around. I own the Crescent Fund...also have all my bond money in their FPA New Income Fund. Of course, just because they've outperformed in the past...doesn't mean they will in the future.  And Bob Rodriguez will probably retire at some point...he is the Peter Lynch of the 2000's. Brilliant Investor.

[HognotinMemphis]

Never heard of YACKX?? I think FPA is one of the best fund families around. I own the Crescent Fund...also have all my bond money in their FPA New Income Fund. Of course, just because they've outperformed in the past...doesn't mean they will in the future.  And Bob Rodriguez will probably retire at some point...he is the Peter Lynch of the 2000's. Brilliant Investor.

Don Yacktman runs two funds. YACKX is better of the two. Check his long term record and note his fund's performance in both good and bad years. He's done better than 99% of all funds in last 10 and 20 years. To me, it's a must have position and a permahold. Only time to think about it is when he retires.

[HognotinMemphis]

Ya got me there, I didn't look through them at first.  I have actually used the FPA one, and they both look decent, but you won't convert me from what I originally said.   It really depends on when you bought and sold the SPY as to whether or not a fund can beat them.  If you do some technical analysis on buying in and selling off in portions a mainstream ETF you will beat the majority of funds.  You are talking about funds beating a static average, I am not.

Buying and selling anything regularly will not beat a buy and hold of these two MF's...ever. And it will not beat buy and hold of a majority of MF's. You will pay taxes and you will NEVER time the market right every time. Not possible. And every time is what it takes. Saying otherwise is like listening to a regular gambler who tells you only of his big wins yet he is a net loser over his career.

[wilbur]

yackx v. s&p 500
15 years
http://finance.yahoo.com/echarts?s=YACKX+Interactive#symbol=yackx;range=my;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

5 year
http://finance.yahoo.com/echarts?s=YACKX+Interactive#symbol=yackx;range=5y;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

2 year
http://finance.yahoo.com/echarts?s=YACKX+Interactive#symbol=yackx;range=2y;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

[HognotinMemphis]

yackx v. s&p 500
15 years
http://finance.yahoo.com/echarts?s=YACKX+Interactive#symbol=yackx;range=my;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

5 year
http://finance.yahoo.com/echarts?s=YACKX+Interactive#symbol=yackx;range=5y;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

2 year
http://finance.yahoo.com/echarts?s=YACKX+Interactive#symbol=yackx;range=2y;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Put the 10 yr chart in there. Since 2001, YACKX had killed S&P 500 index. I would like to know if this reflects reinvested dividends for both the S&P 500 and YACKX.

Interesting to see these graphs. Note that I did not say YACKX would always beat an index over every period of time. I said buying and holding a MF the quality of YACKX would always beat a tactic of buying and selling anything at various intervals. The market cannot be timed.

[HognotinMemphis]

Tried to copy and paste the chart from 1999 to present comparing YACKX, FPACX, S&P 500 and LLPFX (Longleaf Partners). Shows only YACKX on chart when I paste link in this post.

Trying to post the chart again:

http://finance.yahoo.com/charts?s=YACKX#symbol=yackx;range=19981225,20120508;compare=%5Egspc+fpacx+llpfx;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

[wilbur]

Yahoo did not provide a 10 year button.....2 year, 5 year, and max....  It does depend on when you start the chart though.  I would love to be able to pick your brain.  I've got about 30k a year I'm trying to invest.  Right now I'm dollar cost averaging Vgenx (energy), vdigx (dividend), vgsix (reit), vmgrx (mid cap growth), and vfiax (s&P 500).  I'm in chk at 24.  I've got some overlap with those.  I need some international, but I'm still afraid of Europe.  I'm afraid everyone with $ is about to take their money and go home in France.  Taxing > $1million earners at 75% is not going to encourage growth. 

I have been inconsistent on individual stocks.  I hit a homerun on ozrk, crashed on playing the vix, and ran chk from 21 to 25.  I bought back in on chk and I'm down 25%.  It's fun to play stocks, but I do better on funds.  I've got 20 years to go before retirement.  I'll have a pension, but I need more. 

[HognotinMemphis]

Yahoo did not provide a 10 year button.....2 year, 5 year, and max....  It does depend on when you start the chart though.  I would love to be able to pick your brain.  I've got about 30k a year I'm trying to invest.  Right now I'm dollar cost averaging Vgenx (energy), vdigx (dividend), vgsix (reit), vmgrx (mid cap growth), and vfiax (s&P 500).  I'm in chk at 24.  I've got some overlap with those.  I need some international, but I'm still afraid of Europe.  I'm afraid everyone with $ is about to take their money and go home in France.  Taxing > $1million earners at 75% is not going to encourage growth. 

I have been inconsistent on individual stocks.  I hit a homerun on ozrk, crashed on playing the vix, and ran chk from 21 to 25.  I bought back in on chk and I'm down 25%.  It's fun to play stocks, but I do better on funds.  I've got 20 years to go before retirement.  I'll have a pension, but I need more.

Yahoo chart does not have a 10 yr button but if you slide the button below the graph, you can make it whatever time frame you want. Thats what I did with the graph I posted a link to above.

Are those index funds? Low expenses?

If you want to pick my brain, PM me and I will give you my email address and my phone number.

I'm down almost 25% on CHK too. It will come back. I am not going anywhere and neither is it. I have quite a bit in ADR's. Great companies. Will make nice profit over next 15 to 20 years in them.

[wilbur]

The s&P fund has expenses listed at .05%...the energy fund has the highest at .34%.  The rest are in between.  Only vfiax is an index fund.  The rest are managed but relatively low turnover.