Value Investment Fund Status Week 12 – Principles are Working.

Value Investment Fund

During the week ending January 15, 2021, the Value Investment Fund grew a whopping 1.3%. Whereas the DOW reported a slight downward change of .6%. Exceptional growth for the fund was boosted by the results tied to the REITs Pool. REITs grew 5.8% in one week. The principle of patience is beginning to show itself with this pool of investments. Altogether, this pool has expanded $10,226 in 12 weeks off of an investment of $60,000. However, this is an unrealized gain at this point in time. This coming week, all of the REITs will report their 4th quarter preliminary results. If results are positive, the REITs Pool will continue to grow. If results mirror the 3rd quarter, there will be slight drawback of three to four percent. If results are significantly lower than the 3rd quarter, the REIT’s Pool balance will most likely drop back to its basis. Thus, the principle of risk reduction protects the actual core principal with value investing. Based on intrinsic value and the current market conditions, it is unlikely that the REITs Pool of investments will go negative in comparison to the total amount invested to date. 

At the beginning of the week, the Value Investment Fund’s status stood at $117,894 (see Week 11 report). On Thursday, the Fund sold Comerica Bank and made a nice return of 18.38% in a mere 35 days as that particular stock soared that day to the market recovery price set in its buy/sell model. In total, Comerica Bank earned $3,929 off a $20,000 investment; this includes dividends earned in Mid-December. This was another successful full transaction. Total realized returns equal $12,855 including dividends in 86 days of a $100,000 starting balance. This is tracking for more than a 40% annual return. The Investment Fund is still adhering to the expected return of at least 34% during 2021.