Banking Pool

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” – Henry Ford

The third pool of similar investments used with the Investment Fund is banking. Banking is a highly regulated industry, governed by the Federal Reserve, and thinly capitalized in comparison to other industries. The balance sheet is strongly weighted with current assets and liabilities. It is rare for the stock to trade at more than 1.5 times traditional book value. The top three key performance indicators are 1) the spread between interest earned and interest paid; 2) revenue from non-interest sources; and 3) the quality of the loans issued.

There is different tack taken with reading and interpreting a bank’s set of financial statements. The articles that follow in this area explain the respective interpretations of financial reports; how to key in on important bits of information; and how to properly set the buy and sell points for the respective member stocks.

The key advantage of bank stocks is the increased volatility of the stock’s price. In general, the stock’s price for banks vacillates at a higher frequency than the other two pools of the Club’s Investment Fund. This allows for short-term opportunities to fill the voids when holding cash. There is an in-depth explanation of this business principle in the articles below.

In order to access the articles, models, spreadsheets and tutorials related to the banking pool, you must be a member of the Value Investment Club. To join, go to the Membership page on this site (located in the value investing tab in the main menu above).

Value Investing Episode 1 – Introduction and Membership Program

Below are articles related to the banking pool. Only the excerpts are available to non-members. Full access to the respective article requires membership status.

Value Investment Club

• Value Investment Club Annual Membership
  $149.99
  Value investing utilizes a buy low, sell high tenet of systematic processing of stock and other security investments. Value investing reaps substantially greater returns than all other major market measurement indices (DOW, S&P 500, Russell 2000, NASDAQ, etc.). The average annual pre-tax return is >20%. When you subscribe, you receive access to all existing articles, books, lessons, webinars and reports explaining how value investing works. In addition, each month, the subscriber receives additional articles, reports and buy/sell points for high quality stock purchases. Follow along as the fund updates regularly and discover how to invest like a pro and earn excellent returns on your investment. Subscription is for one year of access to the value investing pool of information.

Please Signup

* Username

* First Name

* Last Name

* Email Address

* Password

Strength: Very Weak

Done

(Use Cropper to set image and
use mouse scroller for zoom image.)

Select Your Payment Gateway

• Stripe
• Paypal

Card Holder Name

Credit Card Number

Expiration Month

Expiration Year

CVV Code

How you want to pay?

Auto Debit Payment

Manual Payment

Payment Summary

Your currently selected plan : , Plan Amount :

, Final Payable Amount:

Submit

• Purchased 2nd Tranche of Wells Fargo Bank

  The Value Investment Fund purchased a second tranche of Wells Fargo Bank shares today, January 14, 2021, at 12:45 PM.

• 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.

• Purchased 292.0560 Shares Wells Fargo Bank

  With a tangible book value of approximately $33 per share and a current market price of $33.24 per share, the Banking Pool diversified its portfolio and purchased 292.056 shares of Wells Fargo Bank this morning. Including a transaction fee of $1 per share, the total investment is $10,000. The market recovery price is set to $53.00 ...

• Value Investment Fund Buys 369.9593 Shares of Comerica Bank

  The value investment fund’s banking pool includes Comerica Bank. Based on the investment’s buy/sell model, this morning prior to opening, an order for 369.9593 shares at $53.06 was entered.

• <<
• 1
• 2