In 1983, three investors each made a decision that has had a positive impact on their lives. That decision was to invest in AMCAP Fund, which launched in 1967, and this year marks its 50th anniversary. Hear what the fund has meant to these three long-time investors: Dwayne Daussin, a small business owner in Texas; Blaine Wiley, a retired engineer in Ohio; and Jo Ann Butaud, a lawyer in Kansas.
Jo Ann Butaud: My ex-husband owned a ranch in Texas, about 1600 acres. A coal-fired generating plant came through and bought some of the property. Both of us came, other than the ranch, came from fairly modest upbringing. We didn’t have a lot of money, and so it was important to us to be able to invest that money so that we could build on that for our future. And so we invested it, most of it, with Rich, and he advised us to invest in the American Funds.
I understand that the market rises and falls. I’ve always understood that, and so I don’t worry about it because I have the confidence that the American Funds are going to be steady as you go over time. I mean, I've been invested since 1983, so just because there’s a bad year doesn’t mean that the bottom is going to fall out. In fact, my philosophy is if we’re having a bad time, I just don’t open the envelope. I just don’t open the envelope.
Well, we always projected out into the future with Rich. We wanted to be able to save money for a college education for our children. And as I became older, I wanted to be able to travel and expand my world. I was able to set up a greater community fund, which is a charitable fund that Rich also monitors and is invested in American Funds, so that every year I am able to give charitable contributions to a lot of charities that way.
I’m independent. I could do whatever I want. I feel like I have adequate income to be able to do whatever I want, and I still will be able to leave money to my children and my grandchildren.
Blaine Wiley: So in 1980, 1981, our business was booming. My kids are by this time getting out of college, so I had some disposable income. We were doing stocks at that time with Joe. I’m telling him, “Joe, I don’t want that phone call at three in the afternoon or 10 in the morning about dumping, getting out, hopping in and all that sort of thing.”
He said, “You know, you really ought to get into mutual funds where you don’t really have to think very much. All that you have to do is select the right fund.”
Joe put me into AMCAP, which I knew nothing about. But he pointed out to me what you’re essentially doing was buying management. You would pay a certain fee for a certain percentage of . . . your investment would pay for this management. That drew me in.
I liked that idea a lot. It made sense to me. You got to be in the American market some place. The tin can in the backyard, that doesn’t work. American Funds, they had a track record, and it was impressive. I was convinced that this was worth a shot. I’ve never taken a cent out of it.
Dwayne Daussin: I was in the corporate field in Houston and decided in ‘93 to go a different direction and retired from there. Took my 401(k), existing 401(k) with that company and rolled it over into the AMCAP Fund, which gave me the confidence in the sense of being comfortable with making my move and setting up here, and trying a new business, which is pretty risky if you don’t have that security blanket there. You know, that’s something. I didn't have to borrow money from the bank to start my business. I was somewhat liquid, okay? But with all that going, it made it so much easier to make a decision to come out here to the Piney Woods of East Texas.
I would have probably had to stay more years and done like everybody else, retired when I’m 65, 70 and don't have much time left to enjoy what I want to do. I’ve had friends who are in the corporate field who are doing real well financially, but health-wise they’re not doing too well. To me, my health is more important than that at this time in my life. For me, health is wealth, and out here in this environment, rowing my boat, riding my mountain bike . . . I can go at my own pace here. AMCAP has played a big part in that.
This does not necessarily constitute an endorsement of the funds by the individuals or organizations portrayed in the video. Your experience may vary.
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