HCH. Congrats on your prescience. However, what may have made your good returns may not have been a purchase and hold of HQH, but rather a purchase, hold, and predominantly, the reinvestment of all distributions (facilitated by being in an ira -- no taxes to be paid). Glancing at a chart, it looks like you bought at a relatively high price in 2000 but were able to purchase subsequent shares as the stock fell and remained low - maybe (from 2001 to 2013 (compared to prices in 2001)). The fund's nadir was late 2008/early 2009 from where it then began its current ascent.
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Not sure what my point is: Maybe good returns can also be got with a stock that drops and stays down for quite a while if one has confidence in one's pick and adds periodically to the position during the down period. And continue holding during a down period that can be many years long.
Certainly I'm one who believes in averaging down. It works sometimes. In your daughter's case, very well. Are we talking though about one stock (HQH fund) in a portfolio of one? What would've been returns if there were 3,4,5,or 10 stocks? Not as good as you report now, I'd guess. Otoh, with a portfolio consisting of one fund, If daughter is young and it didn't work out, plenty of time to recuperate. In this case seems to have worked out very well. |
