Performance Summary – 23 July 09

 
Our Performance:  Over the past 52 weeks, we have had a 9.9% advantage over the S&P 500 index.
 
Our 52 week return is minus 12.0%.
 
For fun, I’ll put this performance in perspective.  The largest and one of the most respected mutual fund companies in the U.S. is called “American Funds”.  We have beaten their very best stock based mutual fund by more than 10% over the past 52 weeks, not including their 5.75% purchase commission albatross.  Add in the 5.75% purchase fee, and it gets a lot uglier for American Funds (everything about American Funds is respected except the gouging they take in commissions)
 
With this fund company, you could also have bought one of their target retirement funds.  This represents a balance of stocks and bonds.  Their best performing target fund is the one below.  It’s meant for people who are ready to retire next year.  So it’s very conservative (supposedly) with a high bond component.
 
But, I can only assume that their stock picks this year were very poor, because even the high bond percentage couldn’t save them.  They are down 17.12% over the past 52 weeks.
 
Our account is down 12%.  If we had a 50% bond component to our account ( if it was set up for a near retiree) then we’d only be down about 3% this year.
 
I’m the first to admit that we’ve had a tremendous amount of luck for many years.  And I’m not eager to accept approbation for the success we’ve had, because luck has played a role.
 
But what you see below, with a balanced account of stocks and bonds, borders on negligence, in my view.

American Funds 2010 Target Date Retirement Fund® at 22 July 09

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