Value investing, in its simplest terms, means buy low, sell high, the universal primary tenet of business. Value investing is defined as a systematic process of purchasing high-quality stocks at an undervalued market price, quantified by intrinsic value and justified through financial analysis, then selling the stock promptly upon market price recovery.
This site teaches the investor about the four core principles of value investing. There are various in-depth sections, including tutorials about intrinsic value and security analysis.
Furthermore, there is a membership-only section that utilizes a Value Investment Fund with eight pools of different industries and 60-plus potential investments that are monitored regularly. This Fund has a six-year history of 25% annualized returns.
On Friday afternoon, just prior to market closing, this site’s Value Investment Fund purchased 100 shares of Essex Property Trust, Inc. at $221.21 per share.
Purchased 100 Shares of Essex Property Trust, Inc. Read More »
This morning, 09/29/22 at 10:37 AM, the Value Investment Fund sold 200 PUTs on Norfolk Southern Railroad at $6.20 netting $5.20 each after transaction fees.
Sold PUTs on Norfolk Southern Railroad Read More »
Overall, the Value Investment Fund is performing remarkably well in relation to the balance of the market during the first six months of 2022. This is even with the error associated with the failure to sell Wells Fargo back in second week of January. Overall, the market is down at least 15% as indicated by the DOW; this reflects the top 30 companies. The reality is that the market overall is down about 21% (S&P 500, S&P Composite 1500) since January 1, 2022. The S&P 500 and Composite 1500 are a more conservative comparative indices to this Fund’s selection pool of investments. As stated above, if using the NASDAQ 100, the Fund is simply crushing the market with Fund down 5% and the NASDAQ 100 down 29%.
Value Investment Fund – End of June 2022 Report (Halfway Through 2022) Read More »
On June 14, 2022, the Value Investment Fund purchased 77.7000 shares of Essex Property Trust at $256.40 per share. Adding the $1 per share transaction fee, a total of $20,000 was invested into this security.
In addition, the Fund sold a PUT option for 100 shares at $9.90 netting $8.80 per share. The strike price is $240 per share with an expiration date of October 21, 2022.
Bought Essex Property Trust Read More »
PUT options are an excellent tool to leverage the realized return for a value investment based portfolio of securities. In general, options are very risky financial derivatives and are not recommended for unsophisticated investors. In laymen terms, options are classed as mildly speculative instruments in the world of investing. The key to proper use is to eliminate the risk aspect by only utilizing PUTs in a very restrictive set of circumstances.
PUT Options – Leverage Tool for Value Investors Read More »
During May, the Value Investment Fund expanded the portfolio to include two new positions from among the existing 48 potential investments. The first included three separate tranche purchases of The Walt Disney Company and the second was an opportunity presented when Essex Property Trust, Inc. dropped below its intrinsic value. In addition, the Fund sold two separate option contracts in both positions. The Walt Disney Company position was exercised within a few days of that sale and the current option contract for Essex Property Trust, Inc. remains active. The sale of PUT options (three separate companies) generated $3,019 of realized income after associated transaction fees. Finally, Wells Fargo did issue a dividend worth $271 for the Fund. This dividend sits as a receivable on the books of record as Wells Fargo will pay the dividend during the first week of June.
Value Investment Fund – End of May 2022 Report Read More »
The Value Investment Fund sold 80 PUTs on Essex Property Trust, Inc. at $11.30 netting $10.30 each after transaction fees. These PUTs have a strike price of $260 each and expire on October 21, 2022.
Essex Property Trust, Inc. – Sold PUTs Read More »
The market price for Essex Property Trust, Inc. dropped below the ‘Buy’ point of $278 triggering the ‘Buy’ at $278 per share.
Essex Property Trust – Value Investment Fund Buy Read More »
The Walt Disney Company is a DOW Jones Industrial Average member, which means it is one of the top 30 publicly traded companies. Buying this stock at a low price will reward the investor handsomely.
The Walt Disney Company – Position Update Read More »
Today, May 9, 2022, the Value Investment Fund sold 200 PUTs of The Walt Disney Company. Market price at 11:06 AM was $107.34.
The Walt Disney Company – Sold PUTs Read More »
