Value Investment Fund Status Week 11 – Good Week
During the week ending January 8, 2021, the Value Investment Fund expanded 1.3%. Whereas the DOW reported a stronger uptick of 1.5%. Again, exceptional growth for the fund is held in check due to the continued poor performance of the REIT Pool. The concerns about the ability of folks to pay rent during this lockdown period is holding the pool in check. Many institutional investors in these stocks are waiting for the 4th quarter reports; the preliminary reports are due out in two weeks.
At the beginning of the week, the Value Investment Fund’s status stood at $116,231 (see End of December 2020 report). On Friday, Union Pacific was sold at $215.17 as that particular stock soared that day. In total, Union Pacific had a 23.66% return in only 72 days. This was another successful full transaction. This transaction added $4,620 to the realized returns total of $9,177.38 including dividends earned of $1,122.12 in 79 days. This is tracking for a 42% annual return. The Investment Fund is still adhering to the expected return of at least 34% during 2021.
The current status is as follows:
REITs Pool # of Shares Cost Basis Market Price* Fair Market Value
– Equity Residential 574.459 $30,000 $57.26 $32,893.52
– Essex Property Trust 48.9644 10,000 232.89 11,403.32
– UDR 606.9803 20,000 36.38 22,081.94
Sub-Totals $60,000 $66,378.78
Railways Pool
– No Current Holdings
Banking Pool
– Comerica Bank 369.9593 20,000 60.38 22,338.14
Dividend Receivables (Comerica Bank, Essex, Equity, UDR) 918.23
Cash on Hand (Sale of Union Pacific, Options & Dividends) 28,259.15
Totals $100,000 $117,894.30
*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 Investment Fund’s overall status for the eleven weeks to date for the new year against three of the top indices is as follows:
DOW Jones Industrial Average 1.8X Higher
S&P 500 1.7X Higher
S&P Composite 1500 1.7X Higher
Overall, the fund is outperforming the market. One of the core four principles of value investing is patience. Since the COVID-19 vaccine has started distribution to the country, it is just a matter of time to see recovery and acceleration with REIT stocks. While most of the market has already displayed market price recovery from the market decline back in March of 2020, REIT’s have not recovered due to the higher than normal unemployment status nationwide. As this begins to turn positive, REIT investments will accelerate with their market price recovery back to pre-COVID prices. It is just a matter of time.
New Activity During Week 11:
- Sold Union Pacific Railroad for a net gain of $40.19 per share on a $174 per share for a 23.66% return in 72 days.
- Earned $218.51 in dividends from UDR, Inc.; UDR issued a dividend of 36 cents per share on 01/08/2021.
New Information Released During Week 11:
- Sold Union Pacific – 23.66% Return
- Value Investing – Industry Standards (Lesson 13)
- Intrinsic Value of Essex Property Trust
As covered in multiple articles and lessons, patience and adherence to the respective buy/sell models within the Value Investment Fund will generate far superior returns with value investing over any other investment model. Act on Knowledge.