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; but the core amount in determining the intrinsic value of a share of stock is tied to the net assets at fair market value.

The intrinsic value formula is different for every sector of the economy and for the respective industries within that sector. Equity based real estate investment trusts (REITs) consist of six different types. One of the types of REITs are apartment complex based operations. In effect, they are apartment rentals. With real estate, specifically those in the home rental industry which includes apartments, condos, townhomes and traditional individual homes, intrinsic value is strongly tied to the fair market value of the rental properties less the assigned associated debt (mortgage). In addition, some value is included for future near-term earnings and the other assets on the balance sheet. It is really no different than how your traditional home rental operation would value their investment.

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Introduction to Value Investing
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Principles of Value Investing

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 investing is by far the absolute best method to use with your portfolio. The only method that can beat value investing is 'Speculation'. And honestly, speculation is synonymous with gambling. Look at this site's Value Investment Fund results in comparison to eight major indices.

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Value Investment Fund's Two 1/2 Year Running Average Annual Return After Quarterly Taxes (28%) = 23.78% Thru 03/31/2022

This site's Value Investment Fund has outperformed all major indices since inception two and half years ago. A 23.78% 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 is 24.48% (thru 06/17/22). Here is a list of the major indices and their average annual pre-tax return over the last two and three-quarter years:
Businessecon.org's Value Investment Fund 24.48%

- Dow Jones Industrial Average 4.08% S&P 500 8.29%
- S&P Composite 1500 8.21% Russel 2000 3.43%
- NASDAQ 100 15.19% NASDAQ 12.02%
- Invesco QQQ 15.25% Vanguard Growth 10.21%
- Wilshire 5,000 7.42% Russell Top 200 10.75%

This exceptional return on capital investment demonstrates unequivocally how the principles of value investing simply outperform all other forms of investing. Only sheer coincidence with one's picks, referred to as 'luck', can beat value investing. All activity is recorded in real-time on this website.

This site's Value Investment Fund's Annual Returns (Pre-Tax Basis):
. 2020 - 34.41%
. 2021 - 41.08%
Year-to-Date Thru 05/31/2022 - 5.65% (see chart below, click to enlarge)
Notice how this site's Fund had a positive return while all major indices had dramatic losses? This is due to risk reduction which is one of the four core principles taught in Phase I of this program. If you want returns like this for your investment fund, then learn more, click here: Membership Program.

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