Investment Fund

Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

The club’s Value Investment Fund consists of three pools of investments. Each pool is a set of companies in a similar industry. All potential investments are one of the top 2,000 companies traded in the market based on current market capitalization. The six pools and their corresponding members are:

.                                                              Real Estate Investment
Railways
                                                  Trusts (Residential Rentals)                    Banks                              Fast-Food                     Military Contractors             Insurance (P&C)

  • Union Pacific                                Essex Property Trust                                   Comerica Bank               McDonald’s                  Huntington Ingalls                   Travelers’ 
  • CSX                                              UDR (United Dominion Realty)                 Bank of America             Restaurant Brands        Lockheed Martin                      AllState
  • Canadian National                        Equity Residential                                       Wells Fargo                    Starbuck’s                     Raytheon Technologies            Progressive
  • Canadian Pacific                           Avalonbay Communities                             JP Morgan Chase            Jack-In-The-Box           Northrop Grumman                 AFG, Inc.
  • Kansas City Southern                   Mid-America Apartment Communities       Fifth Third Bank             Yum Brands                  General Dynamics                   Old Republic      
  • Norfolk Southern Corporation      American Homes 4Rent CI A                      Bank of New York          Wendy’s                         L3 Harris Technologies          Cincinnati Ins.
  •                                                                                                                                                                           Shack Shack
  •                                                                                                                                                                           Domino’s Pizza

Investment FundThere are no less than 37 potential corporate investments. Each investment fund pool has its own dedicated set of resources, spreadsheets, formulas and supporting documentation in their respective section of the website. You must be a member of the club to gain access. It is encouraged for members to create their own pool and have that pool validated by the facilitator and in a forum of other members. Once completed, that pool may be posted to this site with your permission. If you desire to have your pool posted here, you will be considered the expert for that pool; any interactions with fellow club members related to that pool is controlled by you. 

It is encouraged that all club members complete the initial two phases of the investment program prior to creating their own pool. All members receive suggested buy/sell points for the above three pools as they are generated by the facilitator. 

 

 

Value Investing Episode 1 – Introduction and Membership Program

  • Railroad Stock Investments – The Standard of Measurement to Buy and Sell Railway Stock

    Railroad Stock Investments - The Standard of Measurement to Buy and Sell Railway Stock
    The transportation sector of the United States economy is composed of nine industrial groups. One particular group moves more volume of tonnage based on ton miles than any other form of transportation – Railroads. In accordance with the Federal Department of Transportation, railroads move 39.5% of all freight in the US (based on ton miles ...
  • Replacement Reserves- Understanding the Fundamentals

    Replacement Reserves- Understanding the Fundamentals
    Long and short term housing rental businesses use a financial operations tool to maintain, repair and upgrade the physical facilities. This tool is known as replacement reserves in the real estate industry. In almost all cases it is a contractual agreement requirement between the mortgage lender and the borrower.
  • Hospitality Industry Characterized by High Fixed Costs

    Hospitality Industry Characterized by High Fixed Costs
    There is one unique financial characteristic that is synonymous with the hospitality industry; that is high fixed costs. Or another way of stating the same financial attribute is to simply state that the hospitality industry has low variable costs.
  • Landlord – Business Dynamics and Economics

    Landlord – Business Dynamics and Economics
    I love the game of Monopoly. My sons enjoy playing it too. But we all have the same complaint about the game; it takes forever to accumulate all the wealth and ultimately win the game. Being a landlord means the same thing. It will take a long time to accumulate wealth. For those of you considering becoming ...
  • Real Estate Syndication

    Real Estate Syndication
    Real estate syndication is how apartment or office complexes are financed? A typical complex will have 80 to 100 units and the cost of construction will approximate $7,000,000. Where does this money come from? Your average person will think it is financed by a mortgage of some sort. Well, this is partially true, but mortgage ...
  • Fixed and Variable Costs in a Restaurant

    Fixed and Variable Costs in a Restaurant
    Many restaurant owners and managers do not understand the difference between their fixed and variable costs. The problem with defining fixed and variable costs in a restaurant relate to their connection with sales. In addition, reasonable assumptions have to be made in order to delineate between fixed and variable costs in the food service industry.  This article ...
  • Real Estate Investment Trusts – REITs

    Real Estate Investment Trusts – REITs
    Real Estate Investment Trusts are corporations, trusts or associations that act as agencies in real estate and associated mortgages. This is a specialized tax segment and it requires recognition by the Internal Revenue Service to operate as a Real Estate Investment Trust (REIT). In general, the REIT pays little to no income taxes and acts ...
  • Heads on Beds – Hotel Management

    Heads on Beds – Hotel Management
    The hotel business has one tenet that stands above all other hospitality based business standards. Get heads on beds. Why does this one business standard have so much more value than any other? Well, it is simple, the fixed cost of operations for hotels are over 70% of all costs. Therefore any additional guest sleeping in one of the ...
  • Value Investing – Absolute Dollars

    Value Investing - Absolute Dollars
    In the hospitality industry, there is one financial tenet that takes precedence over any other business perspective. In this industry, it is about putting the maximum number of dollars (ABSOLUTE DOLLARS) in the register after each day. One of the most misunderstood business dynamics of this industry is the higher than average fixed cost to run the ...
  • Franchise Fee, Royalty Fee, License and Marketing Fee – Franchise Agreement Terminology

    Franchise Fee, Royalty Fee, License and Marketing Fee – Franchise Agreement Terminology
    To negotiate a franchise agreement, the potential franchisee needs to fully understand the terminology used in the franchising industry. Often, new franchisees misunderstand the terms ‘Franchise Fee’, ‘Royalty Fee’, ‘License’ and ‘Marketing Fee’. 

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