- Downside risks are low, upward potential is good; in effect value investing has low volatility.
- Simply do your research and set buy/sell triggers and then sit back and watch the fund grow over time.
- Returns on investment should average about 30 percent per year which is about two to three times the market return.
- Low stress investment technique.
The fund started out with $10,000 on October 21, 2019 and it is now 8.5 months later. I have had multiple trades to date, approximately 5 total. My current position for the fund is:
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 = $10,181.00
FMV Gain as a % Since Inception: = 1.81%
Gain on the initial fund basis of $10,000 is $181.00.
Dow Jones Industrial Average on Oct 22 at opening: 26,828
Dow Jones Industrial Average on June 30th 2020 at closing: 25,813
Market Change as a Percentage Decrease: -3.78%
Naturally, the above isn’t anything to get excited about. The market is a reflection of the current COVID Pandemic and the impact on the US economy. But it does validate the minimal downside risk element related to value investing. In effect, my fund has not decreased in value in comparison to the market. When the market recovers or begins to head in a positive direction over a long term period of time; my investment fund will also recover. Once I sell NSC shares, which I anticipate happening prior to Oct 21, I anticipate selling them at their previous high of $219.88 (01/29/2020 at 10:30 AM). Once sold, my fund balance will equal approximately $1,2293.55. Now we just wait. Based on my analysis, the share price will recover; it is just a matter of waiting. Act on Knowledge.