Sold Huntington Ingalls Industries – 103.48% Annualized Return on Investment

Today, 03/07/22, at 10:28 AM, the market price for Huntington Ingalls Industries reached my preset sales price of $226 per share, netting the Value Investment Fund $225 per share after transaction fees. Initial investment on 11/30/2021 was $20,000, including transaction fees (Purchased HII). The total number of shares purchased and sold was 112.9943 shares. Capital gain from this transaction was $5,423.72. During this 98-day holding period, the Fund earned $133.33 in dividends. Total earnings over 98 days were $5,557.05 for an absolute return on the $20,000 investment of 27.785%. Annualized, this equals 103.48%.

Look at this chart showing the history of Huntington Ingalls Industries‘ stock price over the last six months:

Both the buy and sell points are circled. As documented in an article dated 12/12/2021, Huntington Ingalls Industries, Inc. – Market, Intrinsic & Value Investing Prices, this site’s facilitator calculated intrinsic value at $185 per share, buy price at $177 per share, and a fair and reasonable market price for recovery to $220 per share. The author updated the market recovery point to $225 per share after the annual financial report was released in February 2022. That price of $225 plus an additional $1 per share to cover transaction fees was reached this morning. 

This is yet another example of why value investing is so beneficial to investors. In general, it is a win after win set of results. There are no dramatic successes or stories of super returns on an investment; to earn that type of return, an investor must resort to speculation. Value investing is about buying high-quality stocks at low prices and simply waiting for the market price to recover to a reasonable pre-determined price. It isn’t about making dramatic or huge returns on one’s investment, but consistency and adherence to the four core principles earn good returns year after year. Act on Knowledge.