Click to EnlargeEd Owens, the Wellington Management portfolio guru who’s led the Vanguard Health Care Fund (VGHCX) since its May 1984 inception, retired at the end of 2012. While his co-manager, Jean Hynes, ably takes the reins and I continue to recommend this fund as a core, long-term holding, it’s hard to put into words just how incredible Owens’ track record has been.
That’s why I’m resorting to a picture. As you know, it’s been said that a picture tells 1,000 words. But in the chart at right, that picture tells close to 230,000. To be precise, had you invested $3,000 in Health Care at the end of May 1984 and held it through the end of Ed’s tenure, reinvesting distributions along the way, you’d now have $227,770. Had you put that same money into Vanguard 500 Index Fund (VFINX), your $3,000 would have grown to $54,570. In other words — no contest!
I’ve been investing in Health Care since the 1980s. Ed helped put both of my kids through college, and for that alone I say, “Thank you.” I know there are many, many investors who feel the same way.
Senior Editor Dan Wiener and Editor/Research Director Jeffrey DeMaso publish The Independent Adviser for Vanguard Investors, a monthly newsletter that keeps abreast of recent developments at Vanguard, and the annual FFSA Independent Guide to the Vanguard Funds.