VPMCX
VANGUARD PRIMECAP FUND INVESTOR SHARES
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VPMCX/VPMAX and VPPCX. Let them run.
Yeah when I was 25 a guy I was working with told me to put it in VPMCX the fund is closed to new investors as of now. I did and never thought about it, I was young and really just worked , got married bought a home , as of late I’m really getting into my retirement strategies, It comes at you fast so investing early and as much as you can will pay off.
Vanguard is where I started my first Trad IRA 30-odd years ago. I've seen no reason to transfer my account from there, especially since a huge chunk of my Roth IRA is in one of their mutual funds closed to new investors, VPMCX, which has performed very well through the years. My taxable account also holds a large chunk of VGT that I'd prefer not to incur capital gains on just yet. The only reason I switched to Fidelity for my other accounts was that Vanguard's SE401(k) doesn't allow rollovers from employer-sponsored profit sharing plans. And Fidelity offers HSA accounts, while Vanguard doesn't.
$500k is retirement for most people, actually. Depends on age. Take VPMCX, one of Vanguards longest funds (large cap growth). It has had an annual average performance of +13.53% since it started 40 years ago in 1984. If that average performance continued and you invested $500k into it today, you'd have: * $1.78 million in 10 years * $3.35 million in 15 years * $6.33 million in 20 years * $11.93 million in 25 years So assuming OP is age ~50 or less, they definitely could have retired off of this $500k by just throwing it into an index fund for at least 10-15 years and then retire.
If it’s a tax-advantage account, VPMAX/VPMCX is one of those “active never beats index” exceptions. PRIMECAP is one of the most consistent fund managers and the fact Vanguard of all places partnered with them is kind of a testament to their style. Far more systematic and long-term oriented than something like ARKK. Everyone in this thread harping on the 5 year return (vs VOO) while ignoring the [2% CAGR beat over 40 years.](https://investor.vanguard.com/investment-products/mutual-funds/profile/vpmcx#performance-fees) + Every other timeframe other than 5Y. Unfortunately their method involves more frequent rebalancing and that results in cap gains distributed every December.
You have a bunch of different funds. But many of them actually do not provide any diversification, since their contents are already covered by at least 1 other fund you hold. You're only buying the same companies over and over. VTWAX provides all the diversification you'd need (within stocks). You portfolio adds complexity with seemingly no thought behind the moves. ​ Draw a big circle, that'll be VTWAX. Draw a circle a little over half the size, with most of it inside the other, that is VTSAX. Draw a circle fully inside VTSAX but only mostly inside VTWAX, that's VGSLX. Another circle fully inside VTSAX and VTWAX for VFIAX/VOO. The only diversification beyond VTWAX is those little parts that aren't inside the VTWAX ring but are inside one of the others. ​ Dividends themselves are not account value growth, as the share price drops by the distribution amount. This is also likely fully inside VTSAX and probably mostly within VTWAX. Plus being actively managed should be expected to under perform broad coverage indexing. ​ VPMCX being actively managed should be expected to under perform broad coverage indexing.
>I currently have: >VDIGX, VGSLX ,VPMCX (obtained from FedEx Express), VTSAX, VTWAX VTWAX is all you need: it either fully or almost fully contains everything else there. >I'm thinking of getting rid of VDIGX and converting it to either VFIAX or VOO. I'm curious if this is a good move No, because that's already fully inside (at minimum) both VTSAX and VTWAX.
Some of Vanguards managed funds are actually very good and have fairly low expense ratios for a managed fund. PRIMECAP (VPMCX), Wellington (VWELX), Wellesley (VWINX) are all solid funds.
In my 30s as well with a similar retirement portfolio/allocation: 60/20/20 VTSAX/VTIAX/VPMCX. Decided to go with VMPCX since it's a great fund with a proven track record. No bonds and do not plan on adding any until 50.
> nick picking every little stock or sector and having us move in & out on their whims Oh, I found this very clear. And I thank you for being specific enough, like you were, so that some of us may gain comfort in that we are 'buy & hold forever' types. Thank you for the suggestion. I am using a fund that beats VPMCX by a small amount over the last 3, 5 and 10-year periods, but then is getting whooped by VPMCX over the last year. TWCUX is a bit tech heavy, but that's the way I've always been leaning since the early 2000's. It's suffering now, and time will tell I guess. In looking at the top ten holdings of VPMCX, I love the different focus from TWCUX, and may very well incorporate a few of those in my holdings. Thank you.
Yep, I started investing with Vanguard in 1996, and the blanket advice back then (pre-ETF) was to put 80% in VFINX, their S&P 500 index fund, and 20% in a bond fund. I ignored the bond advice, and tried putting a bit in VFINX in the early 2000s. After watching VFINX stagnate for a few years, I moved that money into Vanguard Primecap (VPMCX), which has performed admirably. I was lucky to get in before the fund was closed to new investors. Around the time I started investing, my father mentioned that his retirement money was doing very well focused in health care funds, so I took that in mind as well. Primecap and Vanguard Health Care Fund (VGHCX) have formed the core of my portfolio for 25+ years, and have outperformed the S&P significantly over that time. I only started buying bond funds a few years ago as I entered my 50s, and boy, have they been a disappointment!