Purchased 98.2849 Shares of Norfolk Southern
This morning at the market opening, I purchased 98.2849 shares of Norfolk Southern at $202.49. Altogether, including my transaction fees of $1 per share, I invested $20,000 of the Value Investing Fund. This is assigned to the Railroad Pool part of the fund.
What is interesting is that at the moment the market opened, the price dropped instantaneously to $198.71. However, the trigger point for the buy aspect of Norfolk Southern was reset to 90% of the prior peak of $224.99. Thus, my computer order automatically purchased at the instant moment the price hit $202.49.
If you have been following along, from the Lessons Learned article I posted a few days ago, I agreed to expand the dispersion factor to increase my returns at the risk of not achieving the buy/sell points. For Norfolk Southern, I expanded the buy point from 8% decrease to 10% decrease. The sell point for Norfolk Southern is 103% of prior peak. Thus, the sell order for Norfolk Southern is now set at $231.74. Time is on my side and if the stock price reaches that point within six months of today, my gain will be $2,678.25. Now, I sit back and wait.
Act on Knowledge.
Do you want to learn how to get returns like this?
Then learn about Value Investing. Value investing in the simplest of terms means to buy low and sell high. 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.
There are four key principles used with value investing. Each is required. They are:
- Risk Reduction – Buy only high quality stocks;
- Intrinsic Value – The underlying assets and operations are of good quality and performance;
- Financial Analysis – Use core financial information, business ratios and key performance indicators to create a high level of confidence that recovery is just a matter of time;
- Patience – Allow time to work for the investor.
If you are interested in learning more, go to the Membership Program page under Value Investing section in the header above.
Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each member goes through three distinct phases:
- Education – Introduction to value investing along with terminology used are explained. Key principles of value investing are covered via a series of lessons and tutorials.
- Development – Members are taught how pools of investments are developed by first learning about financial metrics and how to read financial statements. The member then uses existing models to grasp the core understanding of developing buy/sell triggers for high quality stocks.
- Sophistication – Most members reach this phase of understanding after about six months. Many members create their own pools of investments and share with others their knowledge. Members are introduced to more sophisticated types of investments and how to use them to reduce risk and improve, via leverage, overall returns for their value investment pools.
Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:
- Lessons about value investing and the principles involved;
- Free webinars from the author following up the lessons;
- Charts, graphs, tutorials, templates and resources to use when you create your own pool;
- Access to existing pools and their respective data models along with buy/sell triggers;
- Follow along with the investment fund and its weekly updates;
- White papers addressing financial principles and proper interpretation methods; AND
- Some simple good advice.