No. of Recommendations: 0
Only one no-fee fund beats the AMCAP American Fund over the last 20 years and that is the Fidelty ContraFund (by 1%). I will see what I can find on comparable Vanguard funds, if they have been around that long.

Here are charts for Contrafund

http://quotes.fool.com/custom/fool/html-chart.asp?osymb=&osymbols=fcntx&symbols=fcntx&currticker=FCNTX&time=all&uf=0&compidx=aaaaa%7E0&ma=0&symb=fcntx&freq=1dy&lf=1&comp=&type=128&sid=19035

and AMCAP

http://quotes.fool.com/custom/fool/html-chart.asp?osymb=fcntx&osymbols=amec.x%2Canef.x%2Canwp.x%2Ccaib.x%2Ccwgi.x%2Cfcntx%2Cflps.x%2Csmcw.x%2Cvexm.x%2Cvgsi.x&symbols=amcpx&GetBtn=Get+Chart&currticker=FCNTX&time=all&uf=0&compidx=aaaaa%7E0&ma=0&symb=fcntx&freq=1dy&lf=1&comp=&type=128&sid=19035

for all available data. (The Fool doesn't have 20 year plots).

I think American's Washington Fund is more like Contrafund

http://quotes.fool.com/custom/fool/html-chart.asp?osymb=fcntx&osymbols=awshx&symbols=anwpx&GetBtn=Get+Chart&currticker=AWSHX&time=all&uf=0&compidx=aaaaa%7E0&ma=0&symb=awshx&freq=1dy&lf=1&comp=&type=128&sid=5336

Fact is they are all up about 6X in the last 20 years. About 9½% a year.

It is also true that Contrafund is one of the outstanding in the Fidelity stable. (But oh, that sickening lurch downward from 2000 to 2003).


I'd bet (in fact, I am betting with my own money) that she would do better sticking her money in an S&P or Total Market Index fund vs. paying someone to change her "allocation" when she likely won't touch the money for 35 years.

and here is Vanguard's S&P500

http://quotes.fool.com/custom/fool/html-chart.asp?osymb=&osymbols=vfinx&symbols=vfinx&currticker=VFINX&time=all&uf=0&compidx=aaaaa%7E0&ma=0&symb=vfinx&freq=1dy&lf=1&comp=&type=128&sid=5254

also up about 6X. But notice it is still 15% below its peak in 2000. None of the others are.

cliff

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