Vanguard Dividend Growth Fund (VDIGX) Closes To New Investors

You know how I look for the presence of Google/Alphabet stock and the exclusion of Facebook stock in a mutual fund as a shortcut signal for finding talented mutual fund managers? I feel this way because such a decision means that a growth stock manager is relying upon earnings growth more than P/E expansion to build wealth for investors because the wealth rests on a foundation of more permanent value. Put another way, it is a lot easier for a stock’s P/E ratio to go from 80x earnings to 40x earnings than for earnings to go from x to 0.5x so I would rather own investments that require the latter rather than the former to produce failure.

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