The symbolism of the stock market are the bear and the bull. There is a third, the sloth for slow change. January is best stated as a sloth month. The stock market as a whole retracted 2%; but, the Value Investment Fund grew a meager .4% from $116,231 on December 31, 2020 to $116,727 on January 31, 2021.
As stated multiple times throughout the lessons and tutorials, high quality stocks have less risk and thus react remarkably well when the market goes down and recover quickly upon market rebound. Furthermore, high quality stocks provide many opportunities to earn good rewards if properly purchased at intrinsic value and sold upon market price recovery.
On December 31, 2020, the Investment Fund’s balance was $116,231. During the month of January 2021, the DOW Jones Industrial Average decreased 2.04% from 30,606 to 29,983. This club’s fund, increased a meager .4%. The difference is directly associated with the REIT pool. That pool’s balance on December 31st was $67,775 and it now stands at $79,582 including an additional $10,000 of basis tied to a second tranche purchase of Essex Property Trust (see the article for Essex’s intrinsic value calcultion).