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

Sold PUTS Norfolk Southern Railroad
With options, an owner of stock fears a sudden steep drop in price and thus they may purchase an option called ‘PUTs’ to force someone to buy the stock at a preset price. The key for the owner of a PUT is to set a floor price for their existing stock position. A seller of ...
Value Investment Fund Buys 369.9593 Shares of Comerica Bank
The value investment fund’s banking pool includes Comerica Bank. Based on the investment’s buy/sell model, this morning prior to opening, an order for 369.9593 shares at $53.06 was entered. Including the cost of $1.00 per share, total investment is $20,000. The preset sell price is now set at $65.00. Based on historical information, it is believed ...
Value Investment Fund – Fund Status 11/14/2020
This is Week 3 of the 2nd year of the fund’s existence and it has already increased $15,764.75 of the $30,000 goal for the entire year. The $11,913 increase over Week 2’s ending balance reflects the significant change related to both pools tied to the market’s recovery during the same time period. In effect, the ...
Value Investment Fund – Status 11/07/2020
This is Week 2 of the 2nd year of the fund’s existence and it has already increased $3,851.76 of the $30,000 goal for the entire year. The $8,210.52 increase over Week 1’s ending balance reflects the significant change related to both pools tied to the market’s recovery during the same time period. The DOW Jones ...
Value Investing With Real Estate Investment Trusts – Analysis and Evaluation Techniques
Real Estate Investment Trusts (REITs) are considered excellent long-term investments. There are two underlying reasons. First, under the Internal Revenue Code, they are considered income tax free investments. To comply, the REIT must distribute at least 90% of all net income earned to shareholders. The shareholders pay income tax on those dividends received. Because of ...
Purchased 114.9557 Shares of Union Pacific
From the Lessons Learned article posted a few days ago, in order to gain higher returns, the investment model needs to have greater dispersion with my buy/sell trigger points in its model. Last year, the buy/sell triggers for Union Pacific were a 17% market price decrease from the prior peak and to sell at 100% ...
Purchased 98.2849 Shares of Norfolk Southern
This morning at the market opening, the railways pool of the Value Investment Fund purchased 98.2849 shares of Norfolk Southern at $202.49. Altogether, including transaction fees of $1 per share, the fund invested $20,000. This post also explains that the dispersion values increased from 8% decrease in price from prior peak to 10% decrease. This ...
Purchased 606.9803 Shares of UDR, Inc.
At close of business today, 10/26/2020, the REIT pool of the value investment fund purchased 606.9803 shares of UDR, Inc., United Dominion Realty Trust, at $32.95/Each including transaction fees of $1 per share. This post explains the buy/sell trigger points for UDR, Inc. There is also a link explaining the concept of PUTs.
Purchased 382.336 Shares of Equity Residential
When selling PUTs in the market, value investors cover their position by purchasing a similar position in an existing low price to book stock. In effect, the position acts as a bank account in case the PUTs are activated, thus the existing stock is sold and the proceeds are used to cover the PUTs financial ...
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 ...