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.

Value Investment Fund's Two 1/4 Year Running Average Annual Return After Quarterly Taxes (28%) = 26.15%

Only one major index beat this Fund's average annual return; that's the NASDAQ 100 at 36.41%. 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 26.15% annual return after taxes (28% tax rate) is simply unheard of with any fund in the market. This Fund's average annual pre-tax return was 33.14%. Here is a list of the major indices and their average annual pre-tax return over the last two years:

- Dow Jones Industrial Average 12.63% S&P 500 21.29%
- S&P Composite 1500 21.08% Russel 2000 16.27%
- NASDAQ 100 36.41% NASDAQ 31.79%

Site's Value Investment Fund's 2020 Return: 34.41%
. 2021 Return: 41.08%

Both calendar years represent pre-tax returns on basis.

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

There 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

Value Investment Fund Status Week 17 – Three in a Row
Three good weeks in a row, the Club’s Value Investment Fund increased another 3.6% during this past week. That’s three weeks in a row with at least 3% improvement over the prior week. This past week’s growth was driven by the banking pool of investments, specifically the gain from Wells Fargo. Wells Fargo’s total balance ...
Sold Union Pacific PUTs
Union Pacific is a high quality stock. Over the last twenty years, this company has never failed to earn a profit. During this time period, there have been two recessions. The simple fact is that Union Pacific is a solid investment. The company has paid a dividend for the last thirty years. Its current yield ...
Value Investment Fund Status Week 16 – Another Good Week
Another good week, the REIT pool of investments improved another $4,094 driven by Equity Residential and UDR’s actual results from the 4th quarter of 2020. Although the market responded positively to the results, the facilitator believes that UDR didn’t perform as well as Equity or Essex during the last quarter. This requires an in-depth review ...
Value Investment Fund Status Week 15 – Amazing Movement Forward
What a great week! Essex Property Trust reported their 4th quarter results and as expected, the stock’s market priced jumped almost $20 higher per share. The interesting part is that it wasn’t as if Essex reported great results; actually, their financial profits were in line with the third quarter profit. The market was holding back ...
Calculating Intrinsic Value for Bank Stocks
Financial institutions, including banks, are highly regulated, extremely leveraged, and susceptible to interest rate fluctuations. Due to this unique exposure, calculating intrinsic value for bank stocks requires modification of the most popular valuation models. There are about five widely accepted intrinsic valuation models used with determining the core price for stock of most companies. Novice ...
Value Investment Fund – Status on January 31, 2021
The symbolism of the stock market are the bear and the bull. There is a third, the sloth for slow change. January is best stated as a sloth month. The stock market as a whole retracted 2%; but, the Value Investment Fund grew a meager .4% from $116,231 on December 31, 2020 to $116,727 on ...
Sold 113.6363 PUTS on Union Pacific Railroad
In keeping with the value investment fund’s pattern, on Friday the 29th of January, 2021 the Fund sold 113.6363 PUTS on Union Pacific Railroad. These PUTS have a strike price of $175 and are currently sold at $6.24 each. The Fund netted $5.24 each after a $1 per PUT fee. Total realized value equals $595.45 ...
Purchased Bank of New York Mellon Corporation
The banking pool of the Value Investment Fund purchased 232.9373 shares of Bank of New York Mellon Corporation trading at $41.93 at close of business on Friday January 22, 2021. Total investment is $10,000 for 232.9373 shares at $42.93 including a $1 per share exchange fee. After careful analysis, it was determined that the bank’s stock ...
Value Investment Fund Status Week 13 – No Change From Prior Week
During the week ending January 22, 2021, the Value Investment Fund was stagnant; it decreased $54 off of $119,496. Whereas the DOW reported a slight uptick of .6%. At the beginning of the week, the Value Investment Fund’s status stood at $119,496 (see Week 12 report). During the week, Wells Fargo released its preliminary results for ...
Value Investment Fund Status Week 12 – Principles are Working.
During the week ending January 15, 2021, the Value Investment Fund grew a whopping 1.3%. Whereas the DOW reported a slight downward change of .6%. Exceptional growth for the fund was boosted by the results tied to the REITs Pool. REITs grew 5.8% in one week. The principle of patience is beginning to show itself ...