PRWCX (T. Rowe Price Capital Appreciation Fund)

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NumeroUno
Posts: 45
Joined: Tue Jan 23, 2018 2:09 pm

PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by NumeroUno » Wed Oct 31, 2018 7:11 pm

Hi,

I am about 40 and PRWCX seems like a sensible investment vehicle.

Does anyone else own this fund?

It is closed to new investment.

But, in theory, if I were to purchase someone else's shares by paying them an agree upon amount, and arranging a "share transfer," I could get access to the fund.

Anyone own this?

Silk McCue
Posts: 1517
Joined: Thu Feb 25, 2016 7:11 pm

Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by Silk McCue » Wed Oct 31, 2018 7:35 pm

I found this thread which should provide some feedback.

viewtopic.php?t=257645

Cheers

onourway
Posts: 1393
Joined: Thu Dec 08, 2016 3:39 pm

Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by onourway » Wed Oct 31, 2018 7:48 pm

This is classic performance chasing. Yes, over previous history this is one of the funds that has performed well. But previous history is worth little in investing. What matters to you is what will be a good performing fund going forward. And that's impossible predict. However, we do know that funds that have performed well in the past are more likely than not to perform relatively poorly in the future.

This impossible situation is exactly why owning index funds is so powerful. It seems counter-intuitive to accept 'average' market returns. Yet doing just that actually puts you into the top tier of all investors.

NumeroUno
Posts: 45
Joined: Tue Jan 23, 2018 2:09 pm

Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by NumeroUno » Wed Oct 31, 2018 10:34 pm

onourway wrote:
Wed Oct 31, 2018 7:48 pm
This is classic performance chasing. Yes, over previous history this is one of the funds that has performed well. But previous history is worth little in investing. What matters to you is what will be a good performing fund going forward. And that's impossible predict. However, we do know that funds that have performed well in the past are more likely than not to perform relatively poorly in the future.

This impossible situation is exactly why owning index funds is so powerful. It seems counter-intuitive to accept 'average' market returns. Yet doing just that actually puts you into the top tier of all investors.
Yeah but its got a 5 star Morningstar rating.

Miriam2
Posts: 2356
Joined: Fri Nov 14, 2014 11:51 am

Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by Miriam2 » Wed Oct 31, 2018 10:44 pm

Are you considering this fund for your taxable account?

We own it in our 401k's and it certainly brings us delight :moneybag It's a stock fund, about 75/25 but not really a balanced fund, a stock fund with a kitchen sink full of other goodies thrown in, such as convertibles, bonds, junk bonds, foreign stocks and bonds, futures and options, which they say are designed to provide a cushion in down markets, and cash, which they say may hold back growth in bull markets.

However, I'm not sure I'd go out of my way to find an open hole to get into the fund, since there are plenty of other great funds at a much lower expense ratio.

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nedsaid
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Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by nedsaid » Wed Oct 31, 2018 11:11 pm

T. Rowe Price is a firm that I have admired for many years. Paul Merriman, as I recall, is a fan and Larry Swedroe said nice things about them. They have a Value orientation, have a long term outlook, and they have experienced management. Of the active management firms, they and American Funds are probably the best. I started with American Century and Fidelity, if I had it to do over again I would have gone to T. Rowe Price rather than American Century. But it was a fluke, in those days American Century, then 20th Century, had no minimum investment which was perfect for someone who had little money. Their performance was good enough that I stuck with them. I also remember seeing Brian Rogers from T Rowe Price on Wall $treet Week as a frequent panelist.
A fool and his money are good for business.

cegibbs
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Joined: Sun Jan 25, 2015 7:27 am

Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by cegibbs » Thu Dec 13, 2018 5:29 pm

PRWCX is an outstanding fund and is 80 percent of my entire portfolio. I am a long time holder of the fund.

btenny
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Joined: Sun Oct 07, 2007 6:47 pm

Re: PRWCX (T. Rowe Price Capital Appreciation Fund)

Post by btenny » Thu Dec 13, 2018 6:04 pm

I own a nice amount of PRCWX that I bought way back when. It has done well (320% in 10 years with dividend reinvested) but so have lots of other funds. For example TIP the simple bond fund has gone up 80% and VINEX (International Explorer) has returned 240%. I also own VTI, Vanguard Total stock market. It has returned 280% in the last 10 years. I used to own VGHCX, Vanguard Health Care. It has returned 340% in the past ten years. Even better but higher risk. So yes PRWCX is a good stock fund but so are lots of others. Plus since it is relatively high cost and actively managed I have to watch it constantly as things can go haywire.

Good Luck.

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