Value Investment Fund Status Week 19 – Reached Annual Goal Already
The Club’s Value Investment Fund increased another 4.2% during this past week. The initial goal was to achieve a 35% return for the entire fiscal year; this past week surpassed that goal. The facilitator believes the Fund’s total return will approximate 44% by fiscal year end (October 21, 2021).
Here is the current balance and breakout:
REIT Pool # of Shares Cost Basis Market Price* Fair Market Value
– Equity Residential 574.459 $30,000 $67.86 $38,982.79
– Essex Property Trust (Tranche #1) 48.9644 10,000 263.89 12,921.22
– Essex Property Trust (Tranche #2) 43.2994 10,000 263.89 11,426.27
– UDR 606.9803 20,000 41.55 25,220.03
Sub-Totals $70,000 $88,550.31
– No Stock Holdings
– Bank of New York 232.9373 10,000 44.03 10,256.23
. – Wells Fargo (Tranche #1) 292.0560 10,000 36.43 10,639.60
. – Wells Fargo (Tranche #2) 558.9715 20,000 36.43 20,363.33
. Sub-Totals 40,000 41,259.16
Dividend Receivables -0-
Cash on Hand (Gains, Dividends, PUTS) 5,616.54
Totals (Starting Cost Basis = $100,000) $110,000 $135,426.01
*Net of transaction fees of $1.00 per share; thus the amount in the schedule equals the actual market price per share at closing less $1.00.
Both the banking and REITs pool are performing in accordance with the documented performance standards as historically recorded. First quarter financial reports are due out in about six weeks which will substantiate additional growth in each of the respective investments. Patience in one’s decision model is a difficult characteristic to endure; it just isn’t exciting as actual buying and selling. However, value investing is about patience; wealth accumulation is just a matter of time.
Overall, the entire portfolio is performing in accordance to plan. The investment fund follows the primary tenet of buying low and selling high. The management of the fund adheres to four principles of value investing:
- Only buy high quality top 2,000 companies;
- Reduce risk by establishing intrinsic value and purchasing the stock for less than intrinsic value;
- Conduct a financial analysis to determine a reasonable target for market price recovery;
- Be patient.
Act on Knowledge.
© 2021, David J Hoare MSA. All rights reserved.