Author name: David J Hoare

Masters of Science in Accounting, 30 YRS of business administration and financial reporting; prepared over 4,000 tax returns. Big believer in the business concept of 'marginal value' and its impact with market price. An advocate of the feedback loop in construction.

13.85% Return in 13 Days!

Railways Pool / By

Value investing allows investors to earn outstanding returns with a much lower risk. This is another example of excellent returns on a high quality stock. The example value investment fund purchased Norfolk Southern 13 days ago while the share price was 10% discounted from a prior market peak price. The sell trigger was preset at 103% of the prior peak. The only action that needed to occur is market recovery which happened this morning. The buy/sell frequency was extremely quick for this transaction which accelerates the return on the investment.

Value Investment Fund – Status at October 31, 2020

Investment Fund / By

During year one of the Value Investment Fund’s existence, it out performed the DOW by 353%. After evaluating results and using a lessons learned process, adjustments were made and now the investment fund starts year two of the fund’s existence.

This post covers the core tenets and principles of value investing and why they are applicable related to understanding value investing and any results during interim periods.

Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:

1) Lessons about value investing and the principles involved;
2) Free webinars from the author following up the lessons;
3) Charts, graphs and resources to use when you create your own pool;
4) Access to the existing pools and their respective data models along with buy/sell triggers;
5) Follow along with the investment fund and its weekly updates;
6) White papers addressing financial principles and proper interpretation methods; AND
7) Some simple good advice.

Purchased 114.9557 Shares of Union Pacific

Railways Pool / By
PUTs

From the Lessons Learned article posted a few days ago, in order to gain higher returns, the investment model needs to have greater dispersion with my buy/sell trigger points in its model. Last year, the buy/sell triggers for Union Pacific were a 17% market price decrease from the prior peak and to sell at 100% of prior peak.

This purchase point is driven by the model update whereby market price decreases must hit 18% decrease and the sell point increases to 102% of the prior peak price. This post covers the model update and the associated dollar amounts tied to Union Pacific.

Purchased 382.336 Shares of Equity Residential

REITs Pool / By

When selling PUTs in the market, value investors cover their position by purchasing a similar position in an existing low price to book stock. In effect, the position acts as a bank account in case the PUTs are activated, thus the existing stock is sold and the proceeds are used to cover the PUTs financial obligation.

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