Re: Evaluating Managed Funds
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I doubt Contrafund will continue to earn 12% annually going forward. Looking at past returns and extrapolating to the future can be very dangerous unless you have lots of other reasons to think that performance will continue.
And, FWIW, FAIRX has returned over 14% for the past five years.
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What makes you think it will not continue to make 10% or more? The last two years its made 15% each year, and this year it's already up 4%. Just curious what you're basing this on.
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