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Old 11-02-2012, 07:32 AM   #21
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While I own equity and bond index funds, if I were to own a balanced fund I would look at Vanguard Star (which I have owned in the past), Vanguard Wellington and Vanguard Wellesley.
Interesting. I like balanced funds. Of those three, I prefer the one not mentioned: the Balanced Index Fund. With Admiral Shares (VBIAX), its expense ratio of 10 basis points is about 1/3 the cost of the others.

Tim
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Old 11-02-2012, 09:17 AM   #22
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Decided on Disney...(DIS)...bought 5500 shares for 280,000. Pays a dividend, incredibly good revenue stream, just bought LucasArts.
That's almost like the natural resources mutual funds your profile says you are interested in.
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Old 11-02-2012, 01:29 PM   #23
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Interesting. I like balanced funds. Of those three, I prefer the one not mentioned: the Balanced Index Fund. With Admiral Shares (VBIAX), its expense ratio of 10 basis points is about 1/3 the cost of the others.

Tim
Yeah, but the others have performed better over the last 10+ years. Was it skill or luck?
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Old 11-02-2012, 03:06 PM   #24
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Yeah, but the others have performed better over the last 10+ years. Was it skill or luck?
Luck. Over the last 10 years a long-term bond index fund, without any stocks at all, did better than all of them.

The bond side of the Balanced Index is mostly intermediate-term government debt. Wellington and Wellesley hold long-term corporate debt, so they benefited far more from falling interest rates. It's hard to expect the bond side of their portfolio to outperform so dramatically going forward.

Tim
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Old 11-02-2012, 04:09 PM   #25
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Luck. Over the last 10 years a long-term bond index fund, without any stocks at all, did better than all of them.

The bond side of the Balanced Index is mostly intermediate-term government debt. Wellington and Wellesley hold long-term corporate debt, so they benefited far more from falling interest rates. It's hard to expect the bond side of their portfolio to outperform so dramatically going forward.

Tim
But they have the opportunity to move to shorter term debt or even less bonds. The index will stay (relatively) static. While they may or may not be great stock pickers, they could be good at rotating among different asset types. That's tougher to benchmark.
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