The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Breaker on October 11, 2014, 04:51:24 PM

Title: Dan Wiener on Vanguard
Post by: Breaker on October 11, 2014, 04:51:24 PM
Hi,

I know that a lot of Mustachians use Vanguard funds.  Do any of you get Dan Wiener's newletter? 

If so, how do you like it?
Title: Re: Dan Wiener on Vanguard
Post by: TomTX on October 11, 2014, 08:06:18 PM
Why would I need a newsletter? Isn't that for people who are trying to time the market without even doing their own research?
Title: Re: Dan Wiener on Vanguard
Post by: Breaker on October 12, 2014, 09:22:47 AM
From what I understand and this is just from his advertising e-mails, he recommends Vanguard Funds that for some unknown reason out perform the funds that "regular" investors use.  Of course he has numbers to back this up. 

Here's a quote:   " Vanguardís 1%, my members, grabbed $880,778 in EXTRA PROFIT over ordinary Vanguard investors since 1991 off initial portfolios of $100,000.

    The average Vanguard investor turned his $100,000 into $544,029 by the end of 2013. Over that same time, Vanguardís 1% turned their $100,000 into $1,424,807. With less risk, too!"

I was just hoping to check out the validity of his claims.

Title: Re: Dan Wiener on Vanguard
Post by: wtjbatman on October 12, 2014, 11:26:37 AM
Some people don't realize this, but Vanguard has a lot more than just index funds. They also have low-fee actively managed funds, some of which have in the past performed extremely well. Just one example since people always ask. If you invested $10,000 in Vanguard Health Care Fund (VGHAX) in 2004, your $10,000 would have been turned into $33,000. If you invested $10,000 in Vanguard Total Stock Market Fund (VTSAX) in 2004, your $10,000 would have been turned into $22,000. Holy shit, why don't I put half my portfolio in VGHAX then? Index funds are for suckas!

Well, that was the past ten years. What will the return of both funds be from 2014-2014? Can you guarantee to me that the health care fund will outperform the total stock market fund? It possibly will, but your risk is also a lot higher being invested in just one sector of the economy.

Of course, in all honesty, the health care fund likely will outperform a total stock market index fund. But it would be hard to bet my retirement on it :)
Title: Re: Dan Wiener on Vanguard
Post by: RapmasterD on October 12, 2014, 12:41:46 PM
Some people don't realize this, but Vanguard has a lot more than just index funds. They also have low-fee actively managed funds, some of which have in the past performed extremely well. Just one example since people always ask. If you invested $10,000 in Vanguard Health Care Fund (VGHAX) in 2004, your $10,000 would have been turned into $33,000. If you invested $10,000 in Vanguard Total Stock Market Fund (VTSAX) in 2004, your $10,000 would have been turned into $22,000. Holy shit, why don't I put half my portfolio in VGHAX then? Index funds are for suckas!

Well, that was the past ten years. What will the return of both funds be from 2014-2014? Can you guarantee to me that the health care fund will outperform the total stock market fund? It possibly will, but your risk is also a lot higher being invested in just one sector of the economy.

Of course, in all honesty, the health care fund likely will outperform a total stock market index fund. But it would be hard to bet my retirement on it :)

They also have brokerage capabilities, meaning you can buy just about any security...
Title: Re: Dan Wiener on Vanguard
Post by: wtjbatman on October 12, 2014, 12:48:17 PM
Some people don't realize this, but Vanguard has a lot more than just index funds. They also have low-fee actively managed funds, some of which have in the past performed extremely well. Just one example since people always ask. If you invested $10,000 in Vanguard Health Care Fund (VGHAX) in 2004, your $10,000 would have been turned into $33,000. If you invested $10,000 in Vanguard Total Stock Market Fund (VTSAX) in 2004, your $10,000 would have been turned into $22,000. Holy shit, why don't I put half my portfolio in VGHAX then? Index funds are for suckas!

Well, that was the past ten years. What will the return of both funds be from 2014-2014? Can you guarantee to me that the health care fund will outperform the total stock market fund? It possibly will, but your risk is also a lot higher being invested in just one sector of the economy.

Of course, in all honesty, the health care fund likely will outperform a total stock market index fund. But it would be hard to bet my retirement on it :)

They also have brokerage capabilities, meaning you can buy just about any security...

Right, although I was talking specifically about Vanguard funds (which you can buy anywhere), not just the features of a Vanguard brokerage or mutual fund account.
Title: Re: Dan Wiener on Vanguard
Post by: dragoncar on October 13, 2014, 02:49:22 PM
Why would I need a newsletter? Isn't that for people who are trying to time the market without even doing their own research?

It's for people trying to time the market.  Every month they get an email: stay the course