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{"id":15038,"date":"2020-11-09T16:41:45","date_gmt":"2020-11-09T16:41:45","guid":{"rendered":"https:\/\/businessecon.org\/?p=15038"},"modified":"2023-08-28T12:35:14","modified_gmt":"2023-08-28T12:35:14","slug":"13-85-return-in-13-days","status":"publish","type":"post","link":"https:\/\/valueinvestingnow.com\/2020\/11\/13-85-return-in-13-days","title":{"rendered":"13.85% Return in 13 Days!"},"content":{"rendered":"

13.85% Return in 13 Days!<\/strong><\/span><\/h1>\n

On 10\/28\/2020 the value investment fund purchased 98.2849<\/span><\/strong><\/a> shares of Norfolk Southern Corporation<\/span><\/strong><\/a> in its Railways Pool. The total amount invested was $20,000 at a price of $202.49 per share plus a $1\/share transaction fee. Thus, each share costs $203.49.\u00a0<\/span><\/p>\n

Under the value investing approach<\/span><\/strong><\/a>, today, 13 days later, the stock recovered well past its prior peak of $224.99 and the preset sell trigger of 103% of prior peak ($231.74) at 9:35 AM. This was set in motion by the announcement from Pfizer’s that the vaccine for COVID performed well during Phase 3 trials. The market rebounded as a whole.\u00a0<\/span><\/p>\n

Since the fund utilizes buy\/sell orders via computer directives, the shares were automatically sold at $231.74 netting $230.74 per share after $1\/share transaction costs. Total gain from today (11\/09\/2020) is $2,678.26 on a $20,000 investment. There is still more good news. On Thursday the 5th of November, those owning shares of Norfolk Southern were recorded for the dividend payment in early December at 94 cents per share. Thus, there is a receivable for $92.39 from Norfolk Southern. Total earnings during the 13 days equals $2,770.65 which equates to a 13.85% return.\u00a0<\/span><\/p>\n

If you were to annualized this return, it would equal 388% uncompounded. Of course, a 388% return is unrealistic, but the point is that value investing is a very effective systematic approach towards accumulating wealth.<\/span><\/p>\n

The fund’s initial balance for this cycle was $100,000; this is the first full trade and it locks in $2,770 of the $30,000 goal and the fund just started three weeks ago. Act on Knowledge.<\/strong><\/span><\/p>\n