Railways Pool

Sold Union Pacific – 23.66% Return in 72 Days

Value investing is about buying low and selling high. The investor creates a model to set buy/sell triggers and exercises this program with investmetns. Back on October 29, 2020, the Railways Pool of the club’s Value Investment Fund purchased 114.9557 shares of Union Pacific at $173.98 each including a $1 per share transaction cost. In that post, the sell point was set at $215.17 which occurred this morning in the market. Union Pacific actually cleared $221 at one point this morning. 

The fund’s preset sell, automatically sold when the price hit $215.17. The fund netted $214.17 per share after paying a $1 per share transaction fee.

The return on the investment is $40.19 per share as follows:

Purchased 114.9557 Shares of Union Pacific

From the Lessons Learned article posted a few days ago, in order to gain higher returns, the investment model needs to have greater dispersion with my buy/sell trigger points in its model. Last year, the buy/sell triggers for Union Pacific were a 17% market price decrease from the prior peak and to sell at 100% of prior peak.

This purchase point is driven by the model update whereby market price decreases must hit 18% decrease and the sell point increases to 102% of the prior peak price. This post covers the model update and the associated dollar amounts tied to Union Pacific.

Purchased 98.2849 Shares of Norfolk Southern

This morning at the market opening, the railways pool of the Value Investment Fund purchased 98.2849 shares of Norfolk Southern at $202.49. Altogether, including transaction fees of $1 per share, the fund invested $20,000. This post also explains that the dispersion values increased from 8% decrease in price from prior peak to 10% decrease. This is a result of the Lessons Learned article posted earlier this week. Value investors use financial analysis to substantiate their respective decision models for investments and pools of investments.

Sold 49.060606 Shares of Norfolk Southern Railroad for a 14.97% Annual Gain

Sold 49.060606 Shares of Norfolk Southern Railroad for a 14.97% Annual Gain On 09/14/2020, Norfolk Southern’s price hit $220.13 at opening. I set my sell point via an automatic sell at $219.88 and thus the shares automatically sold at $220.13. After paying a $1 per share fee, the railroad fund that I write about on …

Sold 49.060606 Shares of Norfolk Southern Railroad for a 14.97% Annual Gain Read More »

Can Union Pacific Railroad Sustain its Recovery?

  A few months ago, many might have predicted that 2020 would be a difficult year for railroad stocks. The shutdown of the U.S. economy in March caused transportation and shipping activity to slow to a crawl, and to be sure, most related stocks crashed. Furthermore, the oil crash specifically painted a grim long-term picture …

Can Union Pacific Railroad Sustain its Recovery? Read More »

Railroad Fund Balance 06/30/2020

49.060606 Shares of Norfolk Southern Corporation – Closes at $175.82/Share  FMV =  $8,625.84 (Avg Buy Price/Share = $203.83 for Basis of $10,000.00)
Cash Position including recent dividend payment from NSC                                        =  $1,555.16
Total Fund Balance                                                                                                         = $10,181.00
FMV Gain as a % Since Inception:                                                                                 =       1.81%

56.67% Return on Investment: Union Pacific Railroad

Value investing is a principle of investing whereby the investor uses ratios and comparative analysis of similar investments over an extended period of time. In this case, I compared the six publicly traded Class I railways in the United States. Then based on the results, I exercise buy and sell points for each stock within the fund. In this case, Union Pacific’s prior peak (high selling price) was $188.96.

Railroad Fund – Update 02/27/2020 Purchased Union Pacific

In yesterday’s post, I indicated that if Union Pacific’s share price drops to $156.79 that the fund would use its excess cash to purchase shares. Well, today at 10:35 AM it did drop to $156.39. Therefore, I used all remaining cash to purchase 8.268268 shares (includes $1 per share cost to make the purchase). If you read my article: Union Pacific – Buy/Sell Model you would understand that I use a 17% price change requirement to buy. With Union Pacific, this occurs about once every three years and it just did, driven by the market scare with coronavirus.