Value Investment Fund Status Week 6 – 3.2X DOW Jones Industrial Average
During the week ending December 5, 2020, the Value Investment Fund reports a 3.88% gain in one week. Whereas the DOW only reported a 1.2% gain. Thus, as happened multiple times this year to date for the fund and during Year One of the fund; the fund simply outperformed the DOW Jones Industrial Average. Why?
Quality stocks purchased at deep discounts tied to intrinsic value and quantified by excellent financial analysis.
At the beginning of the week, the Investment Fund’s status stood at $114,576.71 (see the end of November report) and then on Friday night after closing (December 4, 2020) the Fund’s balance was $119,024.01. This was a 3.88% gain in one week. The following is the Fund’s respective individual balances by pool along with cash and dividend receivables:
REIT Pool # of Shares Cost Basis Market Price* Fair Market Value
– Equity Residential 574.459 $30,000 $62.37 $35,829.01
– Essex Property Trust 48.9644 10,000 251.73 12,325.81
– UDR 606.9803 20,000 39.68 24,084.98
Sub-Totals $60,000 $72,239.79
Railways Pool
– Union Pacific 114.9557 20,000 205.05 23,571.67
Dividend Receivables (Norfolk Southern & Union Pacific) 203.89
Cash on Hand (Sale of Norfolk Southern & Options) 23,008.66
Totals $100,000 $119,024.01
*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.
The DOW increased during the past week driven by positive signs from Congress related to additional economic relief. The main driver of the fund’s increase in value is tied to the REIT’s Pool of investments. The long-term benefit of economic recovery drives the value of real estate rentals higher and thus, the huge gain that exists in this pool. Specifically, look at the value change in the past 48 days since purchase of the respective shares with a cumulative cost basis of $60,000. Gain since inception is 20.4%. Act on Knowledge.