I've been in FAIRX for about 3 years now, and I think its done fairly well considering the market and how other funds have faired recently; i.e., the Dodge & Cox family, Contrafund, even the S&P. But my questions is this; wouldn't a value investor pull out of FAIRX now, while it is priced higher than some other funds, and take advantage of an opportunity to now get into the other funds, who look pretty cheap now? Just a thought.
i'm confused why you would sell a fund with a great manager that has done better than other funds in order to place that money into another fund with a worse manager that hasn't faired that well. If anything, shouldn't you shift your money from those funds with poor manager to those with great managers?
(Disclosure: I do not hold FAIRX)
The price of the fund is irrelevant. Do you like the management? Is the management stable? Are long term results above average?
I used to own DODGX and it struck an iceberg in the last couple of years. I like the sectors the FAIRX invests in better, plus it's performance has been much better.
I'm 30 yrs old...lots of time until retirement. I'm adding to my FAIRX position as I believe the next year or two will define a lifetime's worth of investing. Let it drop further as far as I'm concerned.
That's the only sane attitude to have if you are in your 30's (or younger). Think about all the shares you buy with each purchase.
For someone my age or older, it takes a lot more discipline to maintain. Someone in their late 50's does not want that...even though they should still plan on having a 10-15 years time horizon for any pure equity positions they have - IMO.
It depends on your investing philosophy.
If you believe in having a well diversified portfolio across many sectors, then it selling what has done well for what has not fits the strategy. Though, in that case, I would question why you are buy managed funds. Most people who believe in this philosophy buy index funds or ETF's.
Additionally, I'd see little value in trading FAIRX for DODGX. Both are value funds. Trying to time when one will do better than the others, is, IMO, a loser's game. I think it's better to pick one and stick with it. Then when you want to re-balance, you sell FAIRX to buy something in a different category like international, small cap, or reits.
But that's jsut me....