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 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

Investment FundThere 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

    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

    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

    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

    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 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?

    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

    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

    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

    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

    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 ...