The good folks at Forbes.com today asked us for some ideas for long term investing. We are always happy to oblige. This exercise allows us to step back and to take a view of the "big picture." As growth minded individuals, we took the opportunity to package a three security portfolio that would give us a terrific odds at a successful outcome on a global basis. Our consideration moved us to recommend a growth fund, a value fund, and an international fund. We wanted exposure to broad asset classes, low correlation, go anywhere type managers, experienced operators, and low fees. We are extremely pleased with the outcome. I've included the text of exactly what was forwarded to Forbes today. I hope you enjoy.
MXXIX – Marsico 21st Century Fund: MXXIX is an aggressive growth no-load mutual fund. It’s a go anywhere type fund, and typically holds between 35 and 50 securities. It has a top quartile ranking from Lipper in 1, 3, and 5 year time periods, with a 21.3% annual rate of return for the five years ended January 31, 2008. This compares favorably to the S&P 500 annual return of 12.0% in the same time period.
YACKX – Yacktman Fund: Lead managers, Don and Stephen Yacktman, are classic value-type investors. They like to wait for the market to come to them and typically don’t chase stocks. This fund is an ideal candidate for the value component of your portfolio. The benefit with YACKX is bear market and downside protection. For example, this fund was up 11.4% in 2002 when the S&P 500 was down –22.1% that year. In the past six months through Jan 31, 2008, this fund was in the top 5% of all funds in its category. That’s the type of performance you want in difficult environments!
DIM – WisdomTree International MidCap Dividend Fund: DIM is one of a smorgasbord of offerings from the fairly new WisdomTree family of ETFs. There are two key benefits of DIM. Number 1: Its unique focus on international dividend paying stocks, ideally positioned between large and small stocks. Number 2: DIM is screened by a fundamental overlay that focuses on earnings and dividends. It’s not a pure market cap schematic. This fund has a low expense ratio of 0.58%, and has a cumulative return of 27.9% since inception (06/16/06), versus the MSCI EAFE benchmark of 21.6% in the same time period thru Jan 31, 2008.
YACKX – Yacktman Fund: Lead managers, Don and Stephen Yacktman, are classic value-type investors. They like to wait for the market to come to them and typically don’t chase stocks. This fund is an ideal candidate for the value component of your portfolio. The benefit with YACKX is bear market and downside protection. For example, this fund was up 11.4% in 2002 when the S&P 500 was down –22.1% that year. In the past six months through Jan 31, 2008, this fund was in the top 5% of all funds in its category. That’s the type of performance you want in difficult environments!
DIM – WisdomTree International MidCap Dividend Fund: DIM is one of a smorgasbord of offerings from the fairly new WisdomTree family of ETFs. There are two key benefits of DIM. Number 1: Its unique focus on international dividend paying stocks, ideally positioned between large and small stocks. Number 2: DIM is screened by a fundamental overlay that focuses on earnings and dividends. It’s not a pure market cap schematic. This fund has a low expense ratio of 0.58%, and has a cumulative return of 27.9% since inception (06/16/06), versus the MSCI EAFE benchmark of 21.6% in the same time period thru Jan 31, 2008.
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