My wife owns Dodge & Cox’s Stock Fund (DODGX) and its been a great performer for her account. I just wish they offered it in my 401K! Despite the nice trending chart below, DODGX is not without its risks.
I ran a quick Monte Carlo simulation and discovered quite a few nasty negative return outcomes for DODGX. In fact there’s 0.04% chance for a nasty -51% rate of return over the past 10 years. Did it happen? No, but its a possibility!
However, the good news is that the majority of the outcomes are skewed toward positive rates of return. There’s 62% chance that your return will be in the green (or red for my Asian friends) at the end of the year. I like those odds!
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