I sold Canadian Pacific because it reached my target sales price. I bought the stock on 10/21/19, the first day of the fund for $219.99 including a $1 per share transaction fee and sold it on 11/15/19 for $241.47 along with a cost of $1 per share netting the fund $240.47 per share. The gain per share was $20.48. Since I only invested $2,500 into this stock, my total gain was $232.74. Also during this quarter, I earned $37.58 in dividends, therefore my total growth equals $270.32.
The current fair market value of the fund is allocated as follows:
- CSX Railroad 103.60774 Shares at $72.36 for a total of $7,497.06
- Norfolk Southern Railroad 13.52375 Shares @$194.13 2,625.37
- Cash 270.32
Total market value is $10,392.74 (1 penny mathematical difference). My current target sell prices are as follows:
- CSX – $80.52
- NSU – $206.46
Thus, since inception, this fund is growing at a slightly higher rate than 20.13% annualized.
If you have been following along so far, there are only six Class I railroads that are currently publicly traded. There is a seventh, but the entire railroad is currently owned by Berkshire Hathaway. All six are truly comparable as none deviate from the primary business of transporting goods.
This fund uses value investing principles centered on business ratios to make buy/sell decisions; the value investing principles I advocate for long-term steady growth. The fourth quarter and annual results will be out in early February and I’m looking forward to evaluating the investments and comparing all six again. Right now the market is performing well, all six railroad companies are doing well in the market and all six are at or near the historical highs. No railroad is currently depressed in price offering a buy opportunity.
Looking forward to some great year end information. ACT ON KNOWLEDGE.