Primecap Odessey Fund

We have opined often on this blog that few people should be buying individual stocks since unless one has not maxed out their 401-k at work and maxed out their Roth IRA outside of work, not to mention getting the 401-k match if offered there is no reason to individual stock picking risk.  There is also the additional $5000 401k and $1000 IRA for those over 50 years old get to add on via the catch up rules. These options have tax deferral and tax free opportunities that should never be passed up. So for most people $23000 plus of your saving investment should be taken up by those dollars. Once someone has left work, or when someone changes jobs they should be moving their 401-k funds to an individual IRA.  

Now the options as to where to place those retirement investment dollars are quite simple in our opinion.  Vanguard Funds is adding $1 billion dollars per day currently and the reason is simple they run dirt cheap funds.  Vanguard is truly investor owned and tight expense managed unlike funds that are owned by shareholders or majority owners like ALL other funds.  So the first place to place funds in Vanguard is in the 500 index fund.  The symbol VFIAX for the Vanguard 500 Admiral Fund, there is also an ETF for this fund,  should see at least 75% or so of your assets.  The other 25% or so should be in Vanguard Primecap fund or Vanguard Capital Opportunity Funds. Both those later funds are stock growth funds and in this new Trump pro-growth economy makes for excellent choices for riding a growth economy.  Unfortunately neither fund is currently open to current Vanguard customers who do not already own the funds or the general public.  The funds will at some point open back up and the first ones allowed to add money will be Vanguard customers which is another excellent reason to own the Vanguard 500 Index Fund. 

Primecap advisors have proven over time to be the best in the business for stock selection in growth segments and they prefer dealing with only a certain amount of assets, hence the closing for new money.   As a current Primecap investor we like that and once you get aboard you should appreciate that as well.  The good news is there is another opportunity to take advantage of Primecap advisors and that is through the Primecap Odessy Fund  Symbol POGRX also has a below average 65 basis point expense ratio which we like as well.  So we suggest as we move into a pro-growth economy some of your assets should be in a growth environment and this fund fits the bill.