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Dodge & Cox Stock Message Board

  • red_by_name red_by_name Aug 10, 2007 12:27 PM Flag

    Down again!

    Why is this stock so volatile at the moment?

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    • It is not a stock but a mutual fund.

    • The short-term low performance that folks are questioning here is just standard for this fund or any others. I think if you're invested here you need to look for the long term. DODGX has a annual turnover rate of only 10%, ie they hold positions for an average of 10 years. They've been powering along with prudent value buys for a long time and will probably continue to do so in the future. This is rational value investing of the type that made Benjamin Graham and Warren Buffett household names.

      If you seek larger short term gains you should look elsewhere, but you need to understand the risk that is typically associated with that kind of investment. Look at something like FLATX where quarterly returns of >20% and <-20% are commonplace. Or look at what happened to the high-flying JAMRX from 2000 to 2003.

      DODGX is exactly what I expect it to be. It occasionaly goes through a small downturn, but over the long haul is something to hang onto.


    • I would suggest you take out you latest semi-annual report 6/30/07 and read it.

      First sentence:

      The Dodge & Cox Stock Fund had a total return of 7.2% for the six months ended June 30, 2007, compared to a total return of 7% for the S&P 500.

      I see no problem there.

      Then check the growth of $10,000 over 10 years. $39,304 vs $19,919 for the S&P

      The 5 year results beat the S&P by over 3 percentage points. 10 years beat by 6 percentage points. And 20 years beat by 3 percentage points.

      No problems there either.

      This is not a "growth" fund and typically will under perform as markets are hitting new highs.

      If you are concerned with only short term results, may I suggest you find a fund that has that short term focus. DODGX is not that fund.

      Happy Investing!


    • It's not a stock, it's a mutual fund( a portfolio of stocks). It's down because the whole stock market is down. If one has the option of buying individual large cap blue chip stocks(which is what DODGX primarily invests in) then I believe that would be preferable. A twentyfive stock portfolio of say: C,RY, AIG, WFC,JNJ, PFE,ACL,TOT,CVX,PG, PEP, MCD,FO, GE, TM, MMM,INTC,AAPL,VNO, RYN,RTP,BA,DE,FDX,BNI would most likely do better long term.

    • What has happened to DODGX is a legitimate question. Even after figuring in dividends and capital gains the fund is still in the bottom 20% of its peer group for the year to date and over the past year. Has the fund become so big ( although it's closed to new investors ) that it has lost its edge?
      The fund is still my biggest holding but I seriously question what is going on. When you're two and half basis points below the S&P 500 something is wrong.

    • About 14% of this funds are in financials which is getting beat up. Along with every other sector which is coming down with it.

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