Value Investing

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.

Value Investment Fund's Two Year Running Average Annual Return After Taxes (28%) = 32.544%

Only one major index beat this Fund's average annual return; that's the NASDAQ 100 at 38.9%. But, that was with pre-tax results. No other fund even came close. No index reports after tax results. All of them report on a pre-tax basis. A 32.544% annual return after taxes is simply unheard of with any fund in the market. This Fund's average annual pre-tax return was 44.8%. It beat the best out there (NASDAQ 100) by an average annual amount of 5.9%. Here is a list of the major indices and their average annual pre-tax return over the last two years:

- Dow Jones Industrial Average 14.9% S&P 500 23.1%
- S&P Composite 1500 22.2% Russel 2000 21.9%
- NASDAQ 100 38.9% NASDAQ 37.3%

This site's Value Investment Fund's average annual pre-tax return: 44.8%.

Site's Value Investment Fund's 2020 Return: 35.46% Current Year To Date 10/15/21 (288 Days): 44.25%

Dow Jones Industrial Average Return for 2020: 6.02% Dow Jones Industrial Average Return Year to Date (2021): 15.32%
S&P 500 Return for 2020: 16.6% S&P 500 Return Year to Date (2021): 19.04%
S&P Composite 1500 Return for 2020: 15.01% S&P Composite 1500 YTD: 19.14%
Russell 2000 Return for 2020: 18.5% Russell 2000 Return YTD: 14.72%

The primary tenet of value investing is to to buy low and sell high. If done properly, average annual returns on an investment fund will exceed 30%. Value investing requires the investor spend some time creating a decision matrix for each pool of similar companies. This model is then implemented and updated on an annual basis. Value investing is in effect the exact opposite of day trading. Value investing takes advantage of time and this reduces the overall stress for a fund manager.

Value investing relies on four principles to ensure success.

The first is risk reduction by only working with high quality stocks; in general, work with the top 2,000 companies worldwide. Absolutely avoid penny and small cap financial instruments. Top companies reduce risk significantly due to their stability of earnings. Stability of earnings is the most important value derivative in business.

Secondly, value investors rely on intrinsic value to set the buy/sell range of market price for the respective stock. Intrinsic value is the core worth of a company. There are several different intrinsic valuation formulas and their application is a function of the company’s business model. There is no single universal intrinsic valuation formula.

In addition, value investors use financial analytics to validate operational and financial performance. This analysis allows the value investor to determine the most likely market price recovery point and its associated time frame to recover.

Finally, patience is required. Time is on the value investor’s side.

Value Investing – Value Investment Club

Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth.

Joining entitles you to the following:

Lessons about value investing and the principles involved;
Free webinars from the author following up the lessons;
Charts, graphs and resources to use when you create your own pool;
Access to the existing pools and their respective data models along with buy/sell triggers;
Follow along with the investment fund and its weekly updates;
White papers addressing financial principles and proper interpretation methods; AND
Some simple good advice.

Value Investment Club

Value Investment Club Annual Membership
$129.99
Value investing utilizes a buy low, sell high tenet of systematic processing of stock investments. Along with patience, value investors reap substantially greater returns than most of the market measurment indices (DOW, Russell 200, S&P, etc.). The average annual pre-tax return is 44.8%. When you subscribe, you receive access to all existing articles, books, lessons, webinars and reports explaining how value investing works. In addition, each week, the subscriber receives additional articles, reports and buy/sell points for high quality stock purchases. Follow along as the fund updates regularly and discover how to invest like a pro and earn excellent returns on your investment. Subscription is for one year of access to the value investing pool of information and formulas.

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Purchased 43.2994 Shares Essex Property Trust
Today, the Value Investment Fund purchased a second tranche of Essex Property Trust. After calculating the intrinsic value of Essex Property Trust at $256, the REITs Pool allocated $10,000 for a second purchase of Essex once the price dipped below $230 per share. Today, 01/11/21 at 12:38 PM, the stock price dropped to $229.95.
Value Investment Fund Status Week 11 – Good Week
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Sold Union Pacific – 23.66% Return in 72 Days
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Value Investment Fund – Status on December 31, 2020
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Value Investing – Industry Standards (Lesson 13)
Have you ever wondered how the measurement of length called a ‘meter’ came to be? It is simply the distance light travels in a given time period. The key isn’t the actual definition, it is whom dictates this time period of travel. Some authority states that this is the definition of a meter (also written ...
Value Investing – Business Ratios (Lesson 12)
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Value Investing – Key Performance Indicators (Lesson 11)
All of us use indicators everyday to help us manage our lives. These indicators assist us with making good decisions. This same concept exists with stock investments. There are several different indicators related to stock. Most of them are financial in nature and often summed up via business ratios. However, many of the top companies ...
Value Investment Fund Status Week 9 – No Change
During the week ending December 25, 2020, the Value Investment Fund expanded 1.6%. Whereas the DOW reported a slight uptick of .04%. The lack of action by the President to sign the relief bill passed by Congress greatly affected the markets as a whole. Both the S&P 500 and the 1500 Composite Index only marginally ...
Value Investment Fund Status Week 8 – Patience
Patience is essential with value investing. It is difficult because it just can’t get here soon enough. However, the models will prevail and the returns on the investment will be lucrative. Be patient. With the REIT Pool of investments, the model indicates that it will take about 10 months to reap an excellent reward; it has ...

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Value Investing

Value Investing – Value Investment Club

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