I have written before about the excellence of The Vanguard Wellington Fund (VWELX) which has delivered returns of 8.3% annually since 1929. When you consider that the imperative of the fund is extreme safety and quality, those returns are quite impressive because of the all-weather nature of the fund. It is a balanced fund, which commits Vanguard to putting 30-60% of its assets in government and high-grade corporate bonds and the rest in low-risk blue-chip stocks.
My view is that it is an ideal holding for those who want to preserve wealth, get a little bit spooked by volatility and/or possess general ignorance of stock-specific investing, and prize stability for their accumulated savings. It is not intended for venturesome accounts or people that want to be rich by age 40 investing a few thousand here and there, but it is intended for people that want to protect what they got … Read the rest of this article!