It's (Fidelity Low Price) an interesting example--I put DW's IRA rollover in it in '96 which I just left untouched with reinvestment of dividends and capital gains, and it is one of my core funds, so I have the data in Quicken.
The last 5 years it slightly underperformed the S&P (11.4 to 11.74).
From 2007-2012 it outperformed the S&P (.42 to -1.32)
From 2002-2007, it seriously outperformed (15.15 to 5.52)
From 1997-2002, it also outperformed significantly (13.95 to 8.65)
So, I made a lot of money--for now--on Low Price. I did not buy it as an S&P proxy however, but as a growth for reasonable price midprice/large blend fund.
My sense over the last 7 years is that it is a victim of its own success; the size of the fund has grown so much that I think it is very difficult for Tillinghast the manager (who I think is very gifted) to outperform, particularly in a rising market. A market slump/crash however will be interesting to see what happens, although I'm not that interested to test that. Danoff at Contrafund has had a similar tailing off over the last 7 years along with the now gargantuan size of the fund.
Buying LowPrice now versus 20 years ago are very different propositions.
I used data from DW's rollover not my 403b, since the later was buying monthly and hers was a rollover that just sat there untouched. Her original investment is up almost 900%, by the way, but not quite there. (knock on wood.)
Quote:
Originally Posted by ERD50
I looked at the Fidelity Low Priced Stock fund he uses as an example in that article. For the most recent 5 years, it has tracked SPY in total return almost exactly. Not sure you can trade on this advice w/o a time machine.
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-ERD50
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