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VGCHX (Vanguard Health) - still worthy of investment?
This is one of my longest held positions. I don't even think I have a proper cost basis on it anymore (original investment was ~15 years ago in a 401k and it's moved to a rollover IRA since.)
I have a few bucks in cash in my rollover account, and this has performed pretty well over the long term, but I believe there were some recent management changes due to retirement. So - would you place more money here?
Edward Owens managed the fund for 28+ years until the end of 2012. His successor was co-manager for the past five years, and is expert in the kind of big pharma stocks the fund tends to own. Also the same analyst team remains in place. If you want to put a little more in the health care space, it would make sense to put more here rather than opening a relatively tiny position in something else IMO.
Health Care and more specifically Biotech have had a nice run...even with that in mind, dca into VGHCX would make sense to me. We are in a transitory period for Healthcare (ObamaCare). Companies are jockey for position and in the end this sector will see upside from this political intiative. Beyond politics, Healthcare is the place to be as countries like the US, Japan, and China age. I like the dividends VGHCX throws off (1.63%)...I like the growth potential (5 yr avg 11.31%).
Fifteen years with the same girl (VGHCX) should count for something, right? She's a keeper in my book.
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Fifteen years with the same girl (VGHCX) should count for something, right? She's a keeper in my book.