Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Which is the best buy?
Old 02-01-2007, 01:01 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 84
Which is the best buy?

If you had to choose to buy one of the 3 vanguard funds below today, which would it be? Why?

Energy Fund (VGENX)
REIT Index Fund (VGSIX)
Emerging Markets Stock Index Fund (VEIEX)
__________________

__________________
&quot;The one who creates does not wait for an opportunity, blaming circumstances, the fates, and the gods.&nbsp; He seizes opportunities or creates them with the magic wand of his will, effort, and searching discrimination&quot;<br />-Yogananda
veritasophia is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Which is the best buy?
Old 02-01-2007, 01:16 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Which is the best buy?

I pick door #1.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 01:19 PM   #3
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: Which is the best buy?

I can't help it, I can't suggest any because I don't know in what context are you buying this? Further diversifying portfolio? What percentage of your NW will be tied up in it? Or are you just asking us to bet on a horse?
__________________
laurence is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 01:22 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Which is the best buy?

Quote:
Originally Posted by brewer12345
I pick door #1.
I'd take the box that Carol is holding.

If I was forced to buy one, i'm probably with brewer. I think i'd sit around a little while longer if I had that choice. Talk about "I'll take hideously overvalued asset classes for $500, Alex?"

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 01:27 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Re: Which is the best buy?

If you force me to buy, I pick VGENX because it is the worst performer over the last year and below its highs. I'm allowed to sell it whenever I want, right?
__________________
LOL! is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 01:30 PM   #6
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Which is the best buy?

Quote:
Originally Posted by LOL!
If you force me to buy, I pick VGENX because it is the worst performer over the last year and below its highs. I'm allowed to sell it whenever I want, right?
As long as you're willing to eat the 1% early-redemption penalty.
__________________
wabmester is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 02:14 PM   #7
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 84
Re: Which is the best buy?

Quote:
Originally Posted by Laurence
I can't help it, I can't suggest any because I don't know in what context are you buying this? Further diversifying portfolio? What percentage of your NW will be tied up in it? Or are you just asking us to bet on a horse?
Diversification. About 10% of our non-retirement portfolio will be tied up in it. The reason I asked is because all 3 seem to be "hideously overvalued asset classes." Maybe I should wait?
__________________
&quot;The one who creates does not wait for an opportunity, blaming circumstances, the fates, and the gods.&nbsp; He seizes opportunities or creates them with the magic wand of his will, effort, and searching discrimination&quot;<br />-Yogananda
veritasophia is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 04:00 PM   #8
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: Which is the best buy?

I'm not much of a slice and dicer, VG S&P index, a small cap, an international, Wellington, Vanguard Value Fund (VTV). That's all she wrote for me.
__________________
laurence is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 04:05 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Which is the best buy?

Personally I'd wait, unless you'd like that 10% to turn into 7% or 5%, thereby being far less concerning.

But one of them might go up another 35% this year. For no obvious reason.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 04:07 PM   #10
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 329
Re: Which is the best buy?

VGENX - The Energy fund. Lower P/E & P/B ratios compared to the others.

-h
__________________
Hope springs eternal in the human breast:Man never is, but always to be blest.
The soul, uneasy and confined from home,Rests and expatiates in a life to come.
lswswein is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 04:34 PM   #11
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: Which is the best buy?

Ya got 25k for diversification into VGENX? Might narrow your choices down to 2
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 04:54 PM   #12
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Which is the best buy?

Quote:
Originally Posted by Veritasophia
If you had to choose to buy one of the 3 vanguard funds below today, which would it be? Why?

Energy Fund (VGENX)
REIT Index Fund (VGSIX)
Emerging Markets Stock Index Fund (VEIEX)
I pick EM because of its potential growth. Energy had its run and REITs are steaming.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 07:16 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Which is the best buy?

Look at a performance chart of each of them.

Looks more like a launch trail than a growth curve.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 08:17 PM   #14
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: Which is the best buy?

Quote:
Originally Posted by Cute Fuzzy Bunny

But one of them might go up another 35% this year. For no obvious reason.
It could be REIT. It's already up by 9%.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Which is the best buy?
Old 02-01-2007, 08:48 PM   #15
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: Which is the best buy?

And the envelope sez…submerging markets
Attached Images
File Type: jpg here\'s johny.jpg (3.5 KB, 2 views)
Attached Files
File Type: jpg_thumb here\\\'s johny.jpg_thumb (42.6 KB, 0 views)
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: Which is the best buy?
Old 02-02-2007, 11:20 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Which is the best buy?

For one year, reits are up the most, energy the least but not by much.

For three years, energy is up the most, the other two neck and neck.

For five years, its almost a dead heat with energy leading by a nose.

For ten years, its energy, then reits and then emerging markets, with energy's run-up (with reinvested dividends) 2x what emerging markets...reits locked almost halfway between energy and emerging markets.

Energy's low PE/PB vs the other two may be a red herring...energy stocks have always been 'value' stocks with low PE's...the current incarnations seem cheap vs the total market but are pretty expensive compared to historic results...coupled with record earnings that probably wont last...

So based on this, I suppose the "value pick" among these ballistic offerings might be EM. :P

This stuff is definitely smelling like irrational exuberance...
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Which is the best buy?
Old 02-02-2007, 02:14 PM   #17
Recycles dryer sheets
ScaredtoQuit's Avatar
 
Join Date: Jan 2007
Posts: 190
Re: Which is the best buy?

I heard last night on "Hard Ball" that Chinese Oil usage would equal ours by 2013. That suggests the run-up in oil prices is far from over.


__________________
ScaredtoQuit is offline   Reply With Quote
Re: Which is the best buy?
Old 02-02-2007, 02:20 PM   #18
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Re: Which is the best buy?

Maybe, but it costs Iran about $18/barrel to pump their oil, and the Suadis only $6. A lot of things like the oil tar sands in Canada become economically viable somewhere between $40-$50 a barrel, so while I don't see $20/barrel oil in our future, a whole lot of new sources come on line at even today's prices. My crystal ball is broken, though, so can't say for sure.
__________________
laurence is offline   Reply With Quote
Re: Which is the best buy?
Old 02-02-2007, 04:23 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Which is the best buy?

Ding! Ding! Ding!

Theres definitely a point where supply runs thin and the prices surge...but I imagine theres plenty of subterfuge around how much is still in each reserve. Then theres the moron that claims oil is not from prehistoric matter but is produced somewhere underground and has an endless supply.

Then theres the question as to when a fund like vgenx starts dropping oil companies and starts loading up on solar, fuel cells and other energy companies. That should be good for some impressive capital gains.

I'm guessing none of this is significant for at least 10 years.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Which is the best buy?
Old 02-02-2007, 04:39 PM   #20
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,778
Re: Which is the best buy?

I'll take VGENX for a thousand, Alex!

Its the only one of the three I don't own. So it must be the best bet


ps. I dumped the REIT a few months ago. Thats how smart I am.
__________________

__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Buy a cheap call option? lazyday FIRE and Money 5 02-02-2007 10:37 AM
TIPS or IBONDS, To Buy or Not To Buy... ? ShokWaveRider FIRE and Money 7 06-25-2006 01:29 PM
How NOT to buy Happiness mickj Other topics 15 06-15-2005 01:38 PM
Housing: Rent vs. Buy BigMoneyJim Young Dreamers 45 01-19-2005 01:54 AM
Buy House Now w/Low Down or Save Bigger Down? BigMoneyJim Young Dreamers 11 07-14-2004 05:23 PM

 

 
All times are GMT -6. The time now is 10:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.