49.060606 Shares of Norfolk Southern Corporation – Closes at $192.21/Share FMV = $9,429.94 (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 = $10,985.10
FMV Gain as a % Since Inception: = 9.85%
Gain on the initial fund basis of $10,000 is $985.10.
Dow Jones Industrial Average on Oct 22 at opening: 26,828
Dow Jones Industrial Average on July 31st 2020 at closing: 26,428
Market Change as a Percentage Decrease: -1.49%
As stated in the first few articles about this fund and the application of value investing for this fund group, value investors will outperform the market if they adhere to the principles of value investing. These principles consist of:
- Using business ratios to evaluate and analyze stock investments;
- Identifying a pool of similar investments whereby the criteria for membership is for all intents and purposes the same;
- Creating buy/sell triggers based on ratio results;
- Set buy/sell points for the respective stock investments;
- Acting on those buy/sell points without emotional attachment; AND
Even with the market change associated with the COVID-19 pandemic; this fund continues to outperform the DOW Jones Industrial Average. In addition, I have only made about half of dozen trades in the last 9.5 months. Again, adherence to the buy sell points with the model. My sell point for Norfolk Southern Corporation is $219.88. It is still my conviction that this value will be reached prior to Oct 21, 2020 when the fund started. If interested in understanding this form of investing; please read the series from the beginning through today.
Today is August 11, 2020. At 11:17 AM, NSC’s stock price peaked at $211.65 per share. The current DOW Jones Industrial Average is 27,687 for a gain since last Oct 21, 2019 of 3.2%. My current fund balance as of close of business today the 11th is $11,711.74 including a dividend receivable from NSC of $46.17. Thus the DOW has increased by 3.2% and this fund has increased 17.12%. I am using the close of business trading price of $206.08 for NSC.
Act on Knowledge.