Let's see how they did.Winners in good times and bad, they're not just lucky -- they're great. If youd bought their flagship funds (and you still can), you'd have one scorching portfolio.
SGENX. Slight outpeformance of 0.5% per year, when compared to a blend of 2/3 Total International and 1/3 US Total Stock Market.
CFIMX. Underperformed Large Blend benchmark by 5.5% annually.
PTTRX. Slight outperformance against Vanguard's Intermediate term bond index, of around 1% annually.
LMVTX. Underperformed Large Blend benchmark by 6.8% annually.
HRTVX. Slight outperformance against Vanguard's Small Value index of around 1% annually.
On the face of it, 3 out of 5 outperformed (although if these were All-Stars you would expect them all to outperform....). But the magnitude of the 2 losers overwhelmed the smaller gains of the 3 winners.
If you put your $1 million nest egg into these All Stars in 2003, you would now have $1,510,000. However, if you had used Vanguard low-cost passive funds with the same asset allocation, you would now have $1,640,000. Gee, you could probably buy a nice Ferrari with the extra money.
Lesson 1: Stay the course with low-cost passive funds.
Lesson 2: Tim Middleton is a bozo.