If it weren’t for today’s economic dark skies, you might not give your mutual funds a second thought.
And while index funds and many other famous “conservative” Vanguard funds continue to stumble, my top fund for retirement is positioned to rocket ahead!
If you could only buy just one Vanguard fund—this is what I’d tell you.
This is a fund that pretty much guarantees you two things that I think you’ll value.
One is a good night’s sleep.
The second reason is a very impressive performance. It has an annual return of 15.7% over the last five years.
What’s The Secret?
Well, if Warren Buffett has a long-lost brother, his name is Jim Barrow. And Barrow is this fund’s secret.
You see, Barrow doesn’t “pick” stocks, any more than Buffett does (You can also read an interview I did with Jim Borrow here.)
He collects, and owns, companies. Companies that are simple. That have high current cash flow. That you can buy and hold for a long time. That are unaffected by business fads.
Like a great athlete, Barrow makes his results look effortless, graceful and deceptively easy.
He knows, in Jack Bogle’s words, “the majesty of simplicity.” Which may account for his ability to rise above market turmoil and deliver such stunning results, so consistently.
As Vanguard investors, you and I are blessed to have access to James Barrow.
But be careful. In the fund he’s best-known for, Windsor II, you only get Barrow at “half-strength.”
Yes, Windsor II is a great fund, but he has another fund, much smaller. It is almost all Barrow, and it is leaping ahead right now.
This is the fund to buy.
As you can tell, I admire Barrow hugely. I’ve studied him all through the 1990s, and there was never a time when he strayed from very clear principles.
Others derided him when technology took off in 1998 and 1999—just as they denounced Warren Buffett.
But today, again like Buffett, Barrow has been totally vindicated. Vindicated with boring food companies, dull utilities, stodgy energy companies and unglamorous retailers. All bought for pennies on the dollar. All making huge profits. In Buffett’s own self-deprecating words, “Contain your excitement.”
What if you already own Windsor II?