Value Investment Fund – Fund Status 11/14/2020

Each week, the value investment fund is updated to bring the current status including any transactions during the past week along with the current balance associated with the closing values from Friday.

Here is the current status:

REIT Pool                               # of Shares     Cost Basis     Market Price*         FMV
    – Equity Residential                 574.459         $30,000             $59.15            $33,979.25

    – Essex Property Trust             48.9644           10,000             253.91               12,432.55
    – UDR                                    606.9803           20,000               37.86               22,980.27      
       Sub-Totals                                                  $60,000                                     $69,392.07
Railways Pool
– Union Pacific                     114.9557         $20,000               202.44              23,271.63
        Sub-Totals                                                 $20,000                                      $23,271.63
        Totals                                                        $80,000                                      $92,663.70
Dividends Receivable                                      Norfolk Southern                              92.39
Cash                                                                                                                       23,008.66
Grand Total Investment Fund Balance (Net of Fees)                                   $115,764.75

*Adjusted lower $1 per share to account for the cost of selling the position; in effect, the FMV represents the value after all costs (transaction fees) are covered.

This is Week 3 of the 2nd year of the fund’s existence and it has already increased $15,764.75 of the $30,000 goal for the entire year. The $11,913 increase over Week 2’s ending balance reflects the significant change related to both pools tied to the market’s recovery during the same time period. In effect, the announcement of Pfizer’s vaccine for COVID pushed the entire market higher. The DOW Jones Industrial Average increased 4.08% during this past week and the Investment Fund increased 11.47% during the same time period.

The differential is tied to the quality of the underlying investments. Per the fundamentals of value investing, when the market recovers, value investment stocks recover at a faster pace. This is taught in Phase Two of the membership curriculm when a subscriber joins the Value Investment Club. Act on Knowledge.

Value Investing

Do you want to learn how to get returns like this?

Then learn about Value Investing. Value investing in the simplest of terms means to buy low and sell high. Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

There are four key principles used with value investing. Each is required. They are:

  1. Risk Reduction – Buy only high quality stocks;
  2. Intrinsic Value – The underlying assets and operations are of good quality and performance;
  3. Financial Analysis – Use core financial information, business ratios and key performance indicators to create a high level of confidence that recovery is just a matter of time;
  4. Patience – Allow time to work for the investor.


If you are interested in learning more, go to the Membership Program page under Value Investing section in the header above. 

Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each member goes through three distinct phases:

  1. Education – Introduction to value investing along with terminology used are explained. Key principles of value investing are covered via a series of lessons and tutorials.
  2. Development – Members are taught how pools of investments are developed by first learning about financial metrics and how to read financial statements. The member then uses existing models to grasp the core understanding of developing buy/sell triggers for high quality stocks.
  3. Sophistication – Most members reach this phase of understanding after about six months. Many members create their own pools of investments and share with others their knowledge. Members are introduced to more sophisticated types of investments and how to use them to reduce risk and improve, via leverage, overall returns for their value investment pools.

Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:

  • Lessons about value investing and the principles involved;
  • Free webinars from the author following up the lessons;
  • Charts, graphs, tutorials, templates and resources to use when you create your own pool;
  • Access to existing pools and their respective data models along with buy/sell triggers;
  • Follow along with the investment fund and its weekly updates;
  • White papers addressing financial principles and proper interpretation methods; AND
  • Some simple good advice.

Value Investment Club

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