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

Purchased 2nd Tranche of Wells Fargo Bank
The Value Investment Fund purchased a second tranche of Wells Fargo Bank shares today, January 14, 2021, at 12:45 PM. Total investment is $20,000. The price per share including a $1 per share transaction fee is $35.78. This particular investment is a part of the Banking Pool for the Club’s Investment Fund. The stock is currently ...
Sold Comerica Bank – Earned 18.38% in 35 Days!
Today, Comerica’s stock price hit the sell point in accordance with the buy/sell model for Comerica Bank. At the market’s opening this morning, January 14, 2021, the stock quickly jumped past $65 per share. The order to sell is set at $65 per share. Total proceeds net of $1 per share transaction fees was $23,677.40. ...
Purchased 292.0560 Shares Wells Fargo Bank
With a tangible book value of approximately $33 per share and a current market price of $33.24 per share, the Banking Pool diversified its portfolio and purchased 292.056 shares of Wells Fargo Bank this morning. The company is due to report its quarter results later this week. Including a transaction fee of $1 per share, the ...
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
During the week ending January 8, 2021, the Value Investment Fund expanded 1.3%. Whereas the DOW reported a stronger uptick of 1.5%. Again, exceptional growth for the fund is held in check due to the continued poor performance of the REIT Pool. The concerns about the ability of folks to pay rent during this lockdown ...
Intrinsic Value of Essex Property Trust
Intrinsic value of stock is a company’s realistic value per share at any given moment. Intrinsic value is not book value; it is the most likely dollar amount a reasonable person would pay for the underlying net assets. In most cases, an investor would include some value for the near-term future earnings of the investment; ...
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 ...
Value Investment Fund – Status on December 31, 2020
On November 30, 2020, the Value Investment Fund’s balance was $114,576.76. During the month of December, the DOW Jones Industrial Average increased 3.28% from 29,603 to 30,606. This club’s fund, increased 1.44%. The difference is directly associated with the REIT pool. That pool’s balance on November 30th was $68,019, thus it decreased .4%; thus it ...
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 ...
Value Investment Fund Status Week 7 – Tough Week
During the week ending December 12, 2020, the Value Investment Fund retracted 4.26%. Whereas the DOW only reported a decrease of .6%. The lack of action in Congress greatly affected the REIT Pool as its value decreased 6.25%. Inaction to support the economy overall affects confidence in the ability of tenants to pay their respective ...