A "Desert Island" Fund
06/09/2006 12:00 am EST
Many advisors have already stood the test of time. But by having followed the advisors for 23 years, I also recognize those new entrants who promise to be tomorrow’s industry leaders. Few have ever impressed me as much as Keith Fitz-Gerald. Here’s a sample.
"I take great pride in consistently providing safety and profits for subscribers. Our success on both accounts can be attributed to identifying trends early on and securing profits before the herd even figures out what to buy. In today’s environment, it makes sense for investors to concentrate on keeping risk low, which leads us to a very old, dear friend—Vanguard Wellington(VWELX)—and why I believe it’s more important than ever that it be the anchor of your portfolio.
"The single most important holding in our portfolio—no ifs, ands, or buts—is one designed to keep our ship anchored and steady through the most brutal of storms: Vanguard Wellington.In fact, every move I make, every position I recommend in The Skeptical Investor portfolio is predicated on the fact that you have allocated 40% to 50% of your assets to Wellington and related ‘Safety and Balance’ recommendations.
"Wellington is a hero throughout history and a key safety valve for us today. I call Wellington the desert island fund’ because it’s the one I’d own if I were forced to own a single position for the rest of my portfolio’s life. It offers both predictability and the opportunity to compound growth over the years.
"Owning it is all about what it can do for investors in a lengthy down or sideways market, like the one I’m expecting to continue well into 2006 and early 2007. So, if you don’t own Vanguard Wellington right now, it’s not too late. It is by far the best move you can make today to ensure safety and continued growth in your portfolio."
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