Sold Comerica Bank – Earned 18.38% in 35 Days!
Today, Comerica’s stock price hit the sell point in accordance with the buy/sell model for Comerica Bank. At the market’s opening this morning, January 14, 2021, the stock quickly jumped past $65 per share. The order to sell is set at $65 per share. Total proceeds net of $1 per share transaction fees was $23,677.40. The cost basis including a $1 per share transaction fee from December 11, 2020 was $20,000. Therefore, the gain on the sale equals $3,677.40. Time of holding was 35 days; thus, the return on the investment is a whopping 18.38%.
This full transaction (buy and sell) drove the realized gains for the Investment Fund’s Year 2 activity to $12,854.78. The Fund’s starting basis was $100,000.
As an interesting side note, during this 35 day holding period, Comerica Bank issued 68 cents per share dividend. Thus, the Fund held 369.9593 shares and earned $251.57 in dividends in addition to the gain of $3,677.40. Therefore, the overall return on the investment is $3,928.97 or 19.64%.
As stated multiple times throughout the lessons in Phase One of the free lessons and in the respective development articles, value investing is a systematic approach of buying low based on intrinsic value and selling the stock upon market price recovery. It is a very effective investment method. Act on Knowledge.