Yes, during September the Value Investment Fund only held one position which was Wells Fargo. It only decreased in value a mere .6%. To make this even more interesting, during September, Wells Fargo was hit with two more fines from the agencies of the federal government totaling more than $300 Million and yet, Wells Fargo only decreased in value a pittance .6%. This is another example of how high quality investments, when purchased at good prices, reduce risk dramatically. Yes, there is an offset to this risk elimination design. An investor will never get rich quickly, i.e. in less than one year. High quality investments purchased at less than intrinsic value have very little volatility and as such can only generate good returns. Good returns are defined as greater than 20% per year on average. In most cases, the average annual returns will exceed 30% per year with about one or two years per economic cycle with meager returns in the five to ten percent range.
Again, Value Investing is about earning good returns, year after year. It is not a get rich quick scheme; it is a thoughtful well laid out plan to improve one’s wealth over time.