Replies to post #42451 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi N, re: LEXCX..............

Here's the MorningStar page showing the breakdown of their portfolio:

http://portfolios.morningstar.com/fund/summary?t=LEXCX®ion=usa&culture=en-US

It appears that at least in 2017 they have been a very large cap fund.

It also suggests they are a Buy/Hold type of manager. Relatively low annual expenses compared to managed funds, but not as cheap as something large cap from Vanguard.

Other than that, I don't know much about this.

[Toofuzzy]

Neck

You might be better off with something like SPY OR IVV

Toofuzzy

[OldAIMGuy]

Hi Neko, Re LEXCX................

Here's LEXCX as compared to Guggenheim's equal weight S&P 500 index fund, RSP:

http://stockcharts.com/freecharts/perf.php?LEXCX,rsp

A quick review shows RSP equal weight seems to be a bit more volatile in bearish markets but out-performs during more bullish periods. Overall maybe a higher BETA.

Look at MorningStar for annual turnover on RSP and tax implications.
http://performance.morningstar.com/fund/tax-analysis.action?t=RSP®ion=usa&culture=en-US
Click on the Compare button and add LEXCX to see pre and after tax estimates. Also add SPY and IVV for a more complete picture.

[ls7550]

Hi Neko

Kevin McDevitt's your man.

30 original stocks, just bought and held since 1935. Now down to the low 20's (large chunk in BRK-A holdings and even larger in XOM (around a third of the portfolio value combined)).

the only way that new stocks could enter the portfolio would be through spin-offs or mergers and acquisitions. On the other hand, a company would only be sold if it suspended its dividend or was in danger of being delisted or going bankrupt.

So some periodic capital gains as it transforms (its more of a trust that a managed fund), but potentially years between such changes. Along with dividend taxation as well.

With initial equal weighting bought and held typically a few will be terrible and maybe even fail, most will underperform the average, a few do incredibly well. A capital gain risk factor is that one of the few that have done incredibly well being taken over or whatever, that generates a capital gains tax event. So whilst regular capital gains might be low/zero, there is a risk that a strong performing stock that is relatively heavily weighted could for instance be taken private and sold by the fund, generating a sizeable capital gain event.

Regards. Clive.

[bar1080]

Can't believe someone is talking about LEXCX! I've followed that tiny little-known fund for years.

LEXCX is more proof of the axiom that "The More You Trade The More You Lose." I pretty much invest the same way. Usually only sell losers to harvest a tax loss. Only sell winners when they become too large in my portfolio, threatening diversification. My oldest stock holding is about 30 years old.

BTW, LEXCX dates to the 1930s.