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.

Site’s Value Investment Fund’s 2020 Return: 35.46% Current Fiscal Year To Date 04/17/21 (179 Days): 48.1%

Dow Jones Industrial Average Return for 2020: 6.02% Dow Jones Industrial Average Return Fiscal Year to Date: 20.6%
S&P 500 Return for 2020: 15.28% S&P 500 Return Fiscal Year to Date: 21.2%
S&P Composite 1500 Return for 2020: 15.01% S&P Composite 1500 Fiscal YTD: 22.6%
Russell 2000 Return for 2020: 18.5% Russell 2000 Return Fiscal YTD: 38.8%

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 three pools and their corresponding members are:

Railways Real Estate Investment Trusts (Residential Rentals) Banks

- Union Pacific Essex Property Trust Comerica Bank
- CSX UDR (United Dominion Realty) Bank of America
- Canadian National Equity Residential Wells Fargo
- Canadian Pacific Avalonbay Communities JP Morgan Chase
- Kansas City Southern Mid-America Apartment Communities Fifth Third Bank
- Norfolk Southern Corporation American Homes 4Rent CI A Bank of New York

There are no less than 18 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

Sold PUTS on Railroad Stocks
Today, I sold 59 PUT options for Union Pacific with a strike price of $170.00 with a final date of February 19, 2021. PUTs are simply selling insurance that if the stock price drops to $170 per share, the Value Investment Fund will have to buy them from the owner of the puts. Today, the ...
Purchased 48.9644 Shares of Essex Property Trust
A second purchased made at close of business yesterday is 48.9644 shares of Essex Property Trust, another REIT investment. The total cost per share including transaction fees is $204.23 per share (closing price is $203.23). Total investment in Essex is $10,000. Cumulative total investment in the Value Investment Fund is $20,000 as of 10/23/2020. I expect ...
Purchased 192.123 Shares of Equity Residential
This post is to record the value investing fund’s purchase of 192.12296 shares of Equity Residential, a real estate investment trust (REIT) for the value investment portfolio. As a result of my ‘Lessons Learned’ article that will be completed and posted this week, I had to broaden my portfolio and include a counter cyclical portfolio of ...
Sold 49.060606 Shares of Norfolk Southern Railroad for a 14.97% Annual Gain
On 09/14/2020, Norfolk Southern Railroad’s price hit $220.13 at opening. I set my sell point via an automatic sell at $219.88 and thus the shares automatically sold at $220.13. After paying a $1 per share fee, the railroad fund that I write about on this site generated $10,750.65. My cost basis in them was exactly ...
Railroad Fund Status July 31, 2020
Railroad stock offers good upside potential with very little risk involved. This particular railroad fund is outperforming the DOW Jones Industrial Average by a factor of three. Learn about value investing from this series of articles.
Can Union Pacific Railroad Sustain its Recovery?
A few months ago, many might have predicted that 2020 would be a difficult year for railroad stocks. The shutdown of the U.S. economy in March caused transportation and shipping activity to slow to a crawl, and to be sure, most related stocks crashed. Furthermore, the oil crash specifically painted a grim long-term picture for ...
Railroad Fund Balance 06/30/2020
49.060606 Shares of Norfolk Southern Corporation – Closes at $175.82/Share FMV = $8,625.84 (Avg Buy Price/Share = $203.83 for Basis of $10,000.00) Cash Position including recent dividend payment from NSC = $1,555.16 Total Fund Balance ...
56.67% Return on Investment: Union Pacific Railroad
Value investing is a principle of investing whereby the investor uses ratios and comparative analysis of similar investments over an extended period of time. In this case, I compared the six publicly traded Class I railways in the United States. Then based on the results, I exercise buy and sell points for each stock within ...
Key Performance Indicators in the Railroad Industry
There are six Class 1 Railways traded in the US market. If you look at each railway’s respective annual and quarterly filings, all of them report certain key performance indicators (KPIs). There are four key performance indicators. The first three are incrementally more valuable. Of the four, revenue ton miles is the most important as ...
Railroad Fund – Update 02/27/2020 Purchased Union Pacific
In yesterday’s post, I indicated that if Union Pacific’s share price drops to $156.79 that the fund would use its excess cash to purchase shares. Well, today at 10:35 AM it did drop to $156.39. Therefore, I used all remaining cash to purchase 8.268268 shares (includes $1 per share cost to make the purchase). If ...

Investment Fund

Value Investing Episode 1 – Introduction and Membership Program

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