Mutual Fund that did not have an annual loss in over twenty (20) years

[Curious Investor]

Originally Posted by mysticaltyger

One that I have always liked is T. Rowe Price Capital Appreciation. I believe it has only lost money once in the last 20 years (2008 when it lost just over 27%...just a notch above average for the "moderate allocation" fund category). 20 year trailing returns are just over 10% annualized. Unfortunately, it's closed to new investors.

Other than 2008, T. Rowe Price Capital Appreciation Fund did great. One two annual loss in the last 30 years (1.25% in 1990 and 27.17% in 2008) I see it is currently 59.7% stocks. Any idea how it did not have a loss in the huge bear market of 2000-2003 when the S&P 500 dropped nearly 50%?

https://www.portfoliovisualizer.com/...nalysisResults

https://www3.troweprice.com/fb2/fbkw...o?ticker=PRWCX

[mathjak107]

the conditions of the drop for a lot of non 100% equity funds in 2008 are likely not to be repeated . do not go by 2008 .

you had some of the most conservative funds get caught with toxic ill- liquid paper that was supposed to be very safe but turned out other wise .

my money market went belly up and i lost money in a money market . it is not likely to happen that way again .

many of those products are gone or no longer allowed . comparisons between any funds in 2008 that held bonds and income paper along with stocks can be most inaccurate.

same thing in 2000 . funds that held a lot of dot com and tech got clobbered , those that didn't look better .

any one fund alone is likely not a comprehensive investment and you really need a good well structured portfolio. i would even say the more all weather the better with all our variables ahead.

https://portfoliocharts.com/portfolios/

[NewbieHere]

I check my mutual funds on Morningstar ratings. I pick the one with good and at least 4 or 5 stars. It usually works out well for me.

[mysticaltyger]

Originally Posted by Curious Investor

Other than 2008, T. Rowe Price Capital Appreciation Fund did great. One two annual loss in the last 30 years (1.25% in 1990 and 27.17% in 2008) I see it is currently 59.7% stocks. Any idea how it did not have a loss in the huge bear market of 2000-2003 when the S&P 500 dropped nearly 50%?

https://www.portfoliovisualizer.com/...nalysisResults

https://www3.troweprice.com/fb2/fbkw...o?ticker=PRWCX

The fund typically holds about 40% in bonds and cash. So at the time I'm sure the bonds/cash component of the fund helped it a lot. Plus, it's a value leaning fund, so I'm sure it probably avoided most of the trendy and overpriced tech stocks of the day. It also likes to own convertible bonds, which are sort of a hybrid between stocks and bonds. The managers currently say they're not a good deal, but I think they were a better deal at that time, so that probably helped, too.