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Alpine Dynamic Dividend Institutional Message Board

  • davcot@att.net davcot Jul 24, 2010 9:00 AM Flag

    Kiplinger's Magazine August issue

    The August issue has many recommendations.One is to short itb,an ETF and another recommendation is to buy AWP,the fund traded at an 18% discount to NAV and yielded 7.2%.
    This is the first time I'm subscribing to Kiplinger's.This issue lists many many ETF Funds.Fidelity has a fund,FLPSX that has an annualized return for the last 20 years of 14.00%.

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    • I've been tracking Fidelity's FLPSX since 1990 and rank* it in the top 5 investments that I track (over 50 of them, all nationally known top performers). Another Fidelity fund, FCNTX which I also track, is just a step behind at a 13% annual ROI over the past 28 years. FCNTX compliments FLPSX because they do not hold the same stocks in their portfolio, so it's o.k. to hold both of them in your own portfolio.

      These are remarkable averages, considering the two disasterous market meltdowns that occurred in the last 10 years. Compare that with the 7% annual ROI for the S&P 500 index over the past 28 years and you see why FLPSX and FCNTX are two of the best MFs around today.

      Neither of these MFs pays a regular dividend like ADVDX does; rather, they rely on CapGains, which they distribute annually in December. Morningstar consistently rates both funds either 4 or 5 stars (out of 5 max).

      The worst performance of either fund occurred in 2008, when each fund lost 36% --- that had never happened before or since, but it can happen to even the best of funds. Until 2008, FLPSX had only 3 losing years (2002's -6% was its worst until 2008). Similarly, FCNTX had 6 losing years in 28, with its -12% in 2001 being the worst prior to 2008.

      Both FLPSX and FCNTX have another favorable factor going for it: consistency of the fund manager. Joel Tillinghast has managed FLPSX for all 20 years; Will Danoff has managed FCNTX for the last 20 of its 28 years. For mutual funds, the stock picking ability of the fund manager and its strategy is paramount to fund performance.

      There are a lot of ways to lose money in the stock market, but FLPSX and FCNTX are not two of them.

      * My rankings are based on a patented method that incoporates both growth and stability of returns (few investors will be comfortable with an investment that earns 50% one year, then loses 50% the next). I use rolling five- and ten-year periods to compute a stability factor for each investment that I track.

    • wow, never saw the fidelity fund, going to checvk iy out..thanks for good info...it is aninteresting mag.

 
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