On 09/14/2020, Norfolk Southern’s price hit $220.13 at opening. I set my sell point via an automatic sell at $219.88 and thus the shares automatically sold at $220.13. After paying a $1 per share fee, the railroad fund that I write about on this site generated $10,750.65. My cost basis in them was exactly $10,000 from two different transactions back on 02/23/2020. On that day, the market crashed due to the COVID scare and the lack of action by our Federal Government. This means, I held the shares for 205 days. During this time, the share had dividend payments of $92.34. Thus, my total earnings over 205 days equaled $842.99.
The daily earnings equals $4.11 or if annualized equals $1,496.82. This means my annual return was 14.97% after fees.
On 09/14/2020, the railroad fund stands with a cash balance of $12,351.96 including a recent deposit on 09/10/2020 for the dividend payment from Norfolk Southern.
The fund has no current ownership of shares in any railroad stock.
Gain on the initial fund basis of $10,000 is $2,351.96. My return for the year is going to be 23.52% as I doubt that opportunity exists in the one week remaining before the one year review.
Dow Jones Industrial Average on Oct 22 at opening: 26,828
Dow Jones Industrial Average on Oct 10, 2020 at closing: 28,606
Market Change as a Percentage Increase: 6.63%
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 12 months. Again, adherence to the buy sell points with the model. My sell point for Norfolk Southern Corporation was $219.88. If interested in understanding this form of investing; please read the series from the beginning through today.