Railroad stock offers good upside potential with very little risk involved. This particular test fund is outperforming the DOW Jones Industrial Average by a factor of three. Learn about value investing from this series of articles.
Value investing is a principle of investing whereby the investor uses ratios and comparative analysis of similar investments over an extended period of time. In this case, I compared the six publicly traded Class I railways in the United States. Then based on the results, I exercise buy and sell points for each stock within the fund. In this case, Union Pacific’s prior peak (high selling price) was $188.96.