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
                                                  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

  • Chipotle Mexican Grill, Inc. – Intrinsic Value for Value Investing

    Chipotle Mexican Grill, Inc. - Intrinsic Value for Value Investing
    Chipotle Mexican Grill, Inc.’s current (01/24/22) market price is around $1,400 per share, trading as high as $1,930 late last summer (summer of 2021). The market price is hyped up on the strong belief that this company will generate incredible results over the next few years. The truth of the matter is this: even if ...
  • Value Investment Fund – End of Year 2021 Report

    Value Investment Fund - End of Year 2021 Report
    During 2021, the Value Investment Fund recorded an outstanding 41.08% return on its December 31, 2020 balance of $116,231. The Value Investment Fund ended 2021 with a balance of $168,430. The effective annual return on the investment equals 41.08%. The target for a value investor is more than 30% per year. What helped boost this good ...
  • Wells Fargo Bank – One Year Report

    Wells Fargo Bank - One Year Report
    One year ago on January 12, 2021, the Value Investment Fund purchased its first tranche of Wells Fargo Bank. At that time, shares were purchased for $33.24. In addition, financial analysis stated that the price per share would recover to about $53 per share within a year assuming the Federal Reserve would lift its growth ...
  • Sold PUTS on Huntington Ingalls Industries

    Sold PUTS on Huntington Ingalls Industries
    Today, the Value Investment Fund sold an options contract (PUTS) for 116.9591 shares of Huntington Ingalls Industries at $5.90 per share netting $4.90 per share. The strike price is $170 per share which is 4% lower than the buy price as set for this particular member of the Military Contractors Pool. The intrinsic value of ...
  • Value Investment Fund – Status on November 30, 2021

    Value Investment Fund - Status on November 30, 2021
    As stated in October’s report, the Value Investment Fund created the Military Contractors Pool of potential investments and researched several opportunities. One of those opportunities is Huntington Ingalls Industries. On November 30, 2021, the Fund proceeded to purchase 112 shares of Huntington Ingalls due to the market price hitting the required margin of safety requirements ...
  • Value Investment Fund – Status on October 31, 2021

    Value Investment Fund - Status on October 31, 2021
    During October, the Fund continued to hold Wells Fargo as its only investment. During the month, Wells Fargo improved $5,166 over September’s ending balance, a 10.48% improvement. As stated in other articles related to Wells Fargo, this is a long-term investment tied to the removal of the Federal Reserve penalty now going into its fourth ...
  • Huntington Ingalls Industries – Market, Intrinsic & Value Investing Prices

    Huntington Ingalls Industries - Market, Intrinsic & Value Investing Prices
    The largest subsidiary of Huntington Ingalls Industries is their Newport News Shipbuilding division. They are the sole builder of the United States Navy’s aircraft carriers. Newport News Shipbuilding has been in business for over 140 years. Huntington Ingalls Industries has three distinct segments of operations. In addition to Newport News Shipbuilding, Huntington Ingalls Industries has ...
  • Purchased Huntington Ingalls Industries

    Purchased Huntington Ingalls Industries
    Today, November 30, 2021, the market saw a decline of 650 points with the DOW Jones Industrial Average. This pushed the price of Huntington Ingalls Industries lower by 2.32% below the predetermined intrinsic value of $185. At 1:15 PM, the price dipped to the buy point as set by this site’s Value Investment Fund for ...
  • Wendy’s – Intrinsic Value of Stock

    Wendy's - Intrinsic Value of Stock
    Wendy’s is the second largest publicly traded informal eating-out (fast-food) hamburger chain. Its current market capitalization places it around $5 Billion. Therefore, it falls into the mid-cap arena of stocks. At the time of this article’s inception, November 2021, Wendy’s was trading on the NASDAQ at $23 per share. Its intrinsic value is a little ...
  • Shake Shack – Intrinsic Value of Stock

    Shake Shack - Intrinsic Value of Stock
    One of the members of the informal eating out industry, fast-food restaurants, is Shake Shack. Shake Shack is one of the few fast-food restaurants that sells beer and wine at a limited number of its locations. The company is relatively young by any business standard opening its first restaurant back in 2001 and going public ...

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