Value Investing

Value investing is a systematic process of purchasing high quality, intrinsic backed stocks at depressed market prices. Using financial analytics, allow time for market price recovery and then proceed to reap gains from an investor’s patience.

Sold Essex Property Trust – 74.07% Annual Return

Value Investment Fund

On June 18, 2021 at 2:56 PM, Essex’s share price dropped to $304 per share triggering a stop-loss order purchased a month earlier. This automatic sale of all 92.2638 shares netted $302 per share. The Value Investment Fund pays $1 per share for any transaction and also pays $1 per share for any option or market mechanism such as the stop-loss directive. Total adjusted sales revenue equals $27,863.67 ($302/Share X 92.2638 Shares). Basis in Essex Property Trust is $20,000 including the original purchase price plus the purchase transaction fee of $1 per share.

The Fund profited $7,863.67. The total holding period was 201 days. Thus, the actual return on the investment was 39.32%. The effective annual return equates to 71.4%.

Value Investment Fund – Status on May 31, 2021

Value Investment Fund

The Club’s Value Investment Fund continued to grow during May 2021. The Fund grew 3.35% driven by increases across the board for all investments. Total actual gain during May was $5,097 as illustrated in the report below.

As stated multiple times throughout the lessons and tutorials, high quality stocks have less risk and thus, resist remarkably well when the market goes down and recover quickly upon market rebound. Furthermore, high quality stocks provide many opportunities to earn good rewards if properly purchased at less than intrinsic value and sold upon market price recovery.

Value Investment Fund Status Week 29 – Just Gliding Along

Value Investment Fund

The Value Investment Fund continues to just glide along with only a .2% increase over the prior week. Although the DOW dropped 571 points, a mere .16%, the respective investments within the Fund improved. This again demonstrates the importance of only working with high quality companies and buying the investments with good margins of safety below intrinsic value reward value investors.

The facilitator recognizes a flaw within the program that impedes long-term continuous growth rates of more than 30% per year. The Fund lacks adequate diversity. In effect, there are not enough potential investments to provide opportunities when the market as a whole is performing so well as it is right now. Thus, over the next six months, the Fund will develop two new pools of potential investments. The Fund has already added the fast food industry with eight potential investments and is currently researching the fifth pool. The end goal is to have more than 30 potential investments providing opportunities. 

Value Investment Fund Status Week 28 – Steady As She Goes

Value Investment Fund

The course set by the Value Investment Fund is achieving its initial goal. The Fund continues to grow, not as fast as it did during the first few months of the new fiscal year. This is because when the respective investments are purchased at low values, and driven by their inherent quality, recover quickly to intrinsic value and typically increase in market value faster than the market as a whole. As the market prices tend towards higher total market capitalization for the respective investment, the growth in the price per share begins to slow. This past week, the Value Investment Fund grew 1.004% reaching a new all time high of $153,477 off a $100,000 investment 28 weeks ago. The average weekly growth rate through the first 20 weeks approximated 1.77%. Thus, the growth rate is slowing down because the core recovery of the respective securities has been achieved. 

Value Investment Fund – Status on April 30, 2021

Value Investment Fund

The Club’s Value Investment Fund continued to grow during April 2021. The Fund grew 7.6% driven by increases across the board for all investments. Total actual gain during April was $10,703 as illustrated in the report below.

As stated multiple times throughout the lessons and tutorials, high quality stocks have less risk and thus, resist remarkably well when the market goes down and recover quickly upon market rebound. Furthermore, high quality stocks provide many opportunities to earn good rewards if properly purchased at less than intrinsic value and sold upon market price recovery.

Value Investment Fund Status Week 26 – Halfway Point Report

Value Investment Fund

Value Investment Fund Status Week 26 – Halfway Point Report Halfway into the fiscal year and already, the value investment fund has surpassed the desired annual return. When the markets closed on Friday, April 23, 2021; the fiscal year to date return for the fund stands at 51.4%. The annual goal is to earn at …

Value Investment Fund Status Week 26 – Halfway Point Report Read More »

Value Investment Fund Status Week 25 – Continued Growth

Value Investment Fund

This past week, the Value Investment Fund grew 2.7% reaching a new all time high at $148,147 off a $100,000 investment 25 weeks ago.

This past week, the banking pool propelled the fund higher with its 5% growth during the week. Wells Fargo and Bank of New York released their financial results from the first quarter. Wells Fargo’s 1st quarter results surpassed even the most optimistic expectations with earnings of $4.7 Billion on $18.1 Billion of revenue (26%). This stock is poised to explode once the Federal Reserve releases its cap on the volume of assets Wells Fargo is allowed to have on its balance sheet. The fund facilitator is adjusting its expected recovery price by $2 to $55 and expects this market price during the first quarter of 2022. 

Value Investment Fund Status Week 24 – Maintaining Position

Value Investment Fund

This past week, the Value Investment Fund grew 2.1% matching many of the major indices in the market.

The fund is well ahead of schedule and is on track to surpass 52% return for fiscal year 2021. Driving the unrealized gains are the REITs. This table illustrates how much has accrued since the purchases in late October, early November. Unlike many other investments, there are no performance indicators to assist investors during interim accounting periods. With REITs, an investor has to wait for the quarterly report to determine performance. Given the sound value of the underlying real estate, there is no concern regarding each position taken by the value investment fund. 

Value Investment Fund – Status on March 31, 2021

Value Investment Fund

The Club’s Value Investment Fund grew dramatically during March 2021. The Fund grew 10.1% driven by increases across the board for all investments. Total actual gain during March was $13,143 as illustrated in the report below.

As stated multiple times throughout the lessons and tutorials, high quality stocks have less risk and thus react remarkably well when the market goes down and recover quickly upon market rebound. Furthermore, high quality stocks provide many opportunities to earn good rewards if properly purchased at less than intrinsic value and sold upon market price recovery. Here is the Value Investment Fund’s status report for the end of March 2021.

Value Investment Fund Status Week 22 – A Fair Return For The Week

A Fair Return

Anytime the value investment fund improves more than 1% during a calendar week, it is a fair return. This past week, the Value Investment Fund grew 2.2% far outpacing all the major indices in the market.

The fund is well ahead of schedule and will surpass 48% return for fiscal year 2021; it is conceivable that it may hit 55% depending on second quarter results for the investments in the REITs Pool. It is currently at 43.6% through the first 22 weeks. All of the respective investments on are on hold waiting for them to work their way to their target sales price. During this past week, the investment fund sold PUTs on Norfolk Southern netting $335.07. Total realized earnings to date are just slightly greater than 15.9%. Unrealized gains exist primarily in the REITs Pool. Compare the purchase price, current market price, market peak price for each of the respective REIT investments.