Sold Huntington Ingalls Industries – 103.48% Annualized Return on Investment
Today, 03/07/22, at 10:28 AM, the market price for Huntington Ingalls Industries reached my preset sales price of $226 per share netting the Value Investment Fund $225 per share after transaction fees. Initial investment on 11/30/2021 was $20,000 including transaction fees (Purchased HII). Total number of shares purchased and sold was 112.9943 shares. Capital gain from this transaction was $5,423.72. During this 98 day holding period, the Fund earned $133.33 in dividends. Total earnings over 98 days were $5,557.05 for an absolute return on the $20,000 investment of 27.785%. Annualized, this equals 103.48%.
Look at this chart showing the history of Huntington Ingalls Industries‘ stock price over the last six months:
Both the buy and sell points are circled. As documented in an article dated 12/12/2021, Huntington Ingalls Industries, Inc. – Market, Intrinsic & Value Investing Prices, this site’s facilitator calculated intrinsic value at $185 per share, buy price at $177 per share and a fair and reasonable market price for recovery to $220 per share. The author, updated the market recovery point to $225 per share after the annual financial report was released in February, 2022. That price of $225 plus an additional $1 per share to cover transaction fees was reached this morning.
This is yet another example of why value investing is so beneficial to investors. In general, it is a win after win set of results. There are no dramatic successes or stories of super returns on an investment; to earn that type of a return, an investor must resort to speculation. Value investing is about buying high quality stocks at low prices and simply waiting for the market price to recover to a reasonable pre-determined price. It isn’t about making dramatic or huge returns on one’s investment; but, consistency and adherence to the four core principles earns good returns year after year. Act on Knowledge.
© 2022, David J Hoare MSA. All rights reserved.