Retirement Watch Lighthouse Logo
Retirement Watch Lighthouse Logo

Buy and Hold Forever Investing

Last update on: Jun 18 2020

For years I’ve been following a mutual fund called the Corporate Leaders fund. Originally it was part of the Lexington group of mutual funds. It now is part of Voya, which used to be part of ING. The fund has a very simple investment strategy. When formed 80 years ago it bought equal amounts of 30 large U.S. corporations. It has held those. Some disappeared through mergers, bankruptcy, and other events. If a company spins off a subsidiary, the fund retains the new stock. It doesn’t rebalance stocks to achieve a certain ratio or match an index. It now is down to 21 stocks but it performing quite well and attracting a lot of money. It is a passive investment but not an index fund, avoiding some of the forced changes and reallocations of an index fund. Here’s a good review.

The plan is simple, and the results have been good. Light on banks and heavy on industrials and energy, the fund has beaten 98 percent of its peers, known as large value funds, over both the past five and ten years, according to Morningstar.

“This fund has been around a lot longer than I have, and it’s working,” said Craig Watkins, 29, an investment analyst for Conover Capital Management in Bellevue, Washington. Conover has recommended the Voya fund to 401(k) plans it advises.

bob-carlson-signature

Retirement-Watch-Sitewide-Promo
pixel

Log In

Forgot Password

Search