Blue Chip Growth Strategy
This Strategy is for people who have a high tolerance for risk. The Strategy owns virtually 100% common stocks, so you should be sure you won't need to use this part of your retirement account for at least 5 years, preferably 10 or more. You should expect occasional losses, sometimes large losses, and have the determination to stick with the Strategy. In this Strategy we use funds which generally invest in larger, financially strong companies operating in our 3 favorite industries: technology, drugs/medical products, and consumer growth. At GSB we believe those 3 sectors will grow faster, in the long run, than any others, so they are the cornerstone of our common stock investment strategies.
Our current investments are approximately as follows. These are only general guidelines for us, rather than a formula to be precisely matched. We seldom change these very much, unless there is a dramatic change in a fund's management style.
|60%||Vanguard Growth Index Fund|
|This fund's index, or formula, causes it to generally own 150-200 of the most highly valued stocks from the larger S&P 500 Index. Those stocks, in turn, usually come from industries like technology, health care and consumer growth, which many investors consider able to grow faster than others in the long run.|
|20%||Fidelity Select Technology Fund|
|This fund specializes in the "technology" sector, using both large and smaller stocks drawn mostly from the communications and computer industries.|
|20%||Vanguard Health Care Fund|
|This fund specializes in the drug, medical product, and health care industries, with an emphasis on the largest and strongest companies from those groups.|
The past performance figures of the Blue Chip Growth Strategy are only useful as illustrations of the relative return rates among Strategies with different risk levels, rather than as guides to future returns.