Wells Fargo is one of the options of this site’s banking pool within the Value Investment Fund. Value investing is a systematic program of buying securities at less than intrinsic value and selling the securities upon market price recovery to or near the previous high.
Bought 400 Shares – Wells Fargo On 03/15/23 at 3:10 PM, the Fund purchased 400 shares of Wells Fargo. The Fund used the proceeds from the Comerica sale to buy into a position with Wells Fargo. The Fund paid $39.51 per share including transaction fees of $1 per share. Total investment was $15,804. The Fund …
One year ago on January 12, 2021, the Value Investment Fund purchased its first tranche of Wells Fargo Bank. At that time, shares were purchased for $33.24. In addition, financial analysis stated that the price per share would recover to about $53 per share within a year assuming the Federal Reserve would lift its growth penalty. Today, the stock surpassed $56 per share. The facilitator for the Value Investment Fund has twice raised the sale price. The first time was back about six months ago whereby it was increased to $58 per share. Most recently, it again was raised to $63 per share.
There are several positive forces that will see the price per share hit $63 prior to mid-year 2022. One, Wells Fargo is expected to report an outstanding 4th quarter for 2021 not only with good revenues, but outstanding profits too. Secondly, in March of this year, the Federal Reserve will raise the interest rates which push the revenues for all banks higher.
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.
