Long-term advice pays off: B.E. suggested these funds four years ago. Here's how they did.Long-term investing is something we preach in every issue of BLACK ENTERPRISE. So, four years ago, when J. Draughn asked BE to suggest some high-growth mutual funds that could provide substantial gains (Moneywise, January 2002), it was a perfect opportunity to demonstrate how anyone can use the resources available to them on the Internet to select mutual funds that can deliver. We directed Draughn to Morningstar (www.morningstar.com), the Chicago-based mutual fund tracking company that regularly lists its top domestic mutual funds. At the time, the economy was in a recession brought on by the terrorist attacks of 9-11. While Draughn asked for "high-growth" funds, I felt it best to recommend funds that had solid long-term performance, thereby increasing the likelihood of success in bad market conditions. The four mutual funds BE recommended scored an 81.05% gain during the four-year period from Oct. 1, 2001, to Oct. 1, 2005. Over the same time period, the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. posted a 15.04% gain and the S&P 500 Index rose by 13.89%. The top performer was First Financial Fund Inc. (NYSE NYSE See: New York Stock Exchange : FF), a fund that holds a number of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies. First Financial grew a spectacular 255.10%, its share price rising from $5.59 to $19.85. The record number of mortgages that have fueled the housing boom and the increase in consumer borrowing undoubtedly helped boost the revenues of companies in the financial services sector.</p> <pre> CURRENT VALUE OF Company TOTAL $1,000 RETURN * INVESTMENT NYSE FF 255.10% $3,550.98 NYSE GCV GCV Ganciclovir GCV Generalized Cross Validation GCV Gross Calorific Value GCV Great Cardiac Vein GCV Gewone Commanditaire Vennootschap (Dutch) GCV Gonsenheimer Carneval-Verein GCV Gross Caloric Value 16.49% $1,164.95 NYSE SOR 53.63% $1,536.34 NYSE NBM NBM National Building Museum NBM National Bank of Moldova NBM Nantier, Beall, Minoustchine (publisher) NBM Nil by Mouth NBM New Beginnings Movement NBM National Bank of Malawi NBM Norwegian Black Metal ** -1.05% $989.53 * TOTAL RETURN REFLECTS STOCK APPRECIATION AND INCLUDES STOCK SPLITS AND DIVIDENDS. ** NATIONS BALANCED TARGET MATURITY CLOSED AFTER LIQUIDATING ITS SHARES ON SEPTEMBER 30, 2004. SOURCE: YAHOO! FINANCE, BIGCHARTS, A SERVICE OF MARKETWATCH </pre> <p>Source Capital Inc. (NYSE: SOR), a mid-cap value fired that holds industrial, retail, and technology companies, among others, performed exceptionally as well. Its shares rose 53.63%, from $45.40 to $69.75. Strong consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. at retail outlets and on consumer electronics helped. The Gabelli Convertible & Income Securities Fund Inc. (NYSE: GCV) also performed well. This fund, which uses convertible securities--bonds that can be converted to stocks--grew 16.49%, going from $7.76 to $9.04 per share. The one disappointment in the small group of funds group of funds See family of funds. BE suggested was the Nations Balanced Target Maturity Fund (NYSE: NBM). The fired, which carried both stocks and bonds of large corporations, lagged in poor market conditions and was liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. on Sept. 30, 2004. At that time the fund had lost 1.05% from our entry point, falling from $9.55 to $9.45 per share. |
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