Originally Posted by Ex-Calif
Yahoo only goes back to 1985 but that's long enough for me and over that time the Dow beats FCNTX.
I agree 100% with what you say about never being in a position to have to sell during downturns and to buy when the market appears to bottom. Those are my two keys to successful investing.
But, I think we are talking apples and oranges when comparing your Yahoo DOW -vs- FCNTX chart and the Morningstar measure of what $10,000 invested is worth at some future point.
Ten thousand dollars put into FCNTX in June 1967 would be worth $2.4 million today. Ten thousand put into a fund that tracked the DOW Industrial average at the same time would be worth $1.3 million today.
Looking at the same GROWTH numbers from September 1985 to now - FCNTX would be worth $420,000 and the DOW industrial average would be worth $232,000.
Yahoo is showing the price
of a FCNTX share compared to the average share price
on the DOW. But, we do not invest in FCNTX shares we only care what our investment would be worth if we liquidated it.
I like mutual funds. Maybe because our investment managers allow us to move between funds with no fees
or penalties and we get to do it all tax-free until we actually take procession of the money
. We have been very pleased with the results after 20-years of investing in only mutual funds.
Others have equally good results investing in equities, real estate, and I suppose, bonds.
I do think this thread is getting a little more financially technical than is appropriate.