Sold Norfolk Southern Railroad – 31.64% Annual Return<\/strong><\/span><\/h1>\n

<\/p>\n

Today, March 4, 2024 just after 2PM, Norfolk Southern Railway’s<\/a><\/span><\/strong> stock surpassed $260 per share. The Value Investment Fund proceeded to sell the stock and net $259 per share after paying a $1 per share transaction fee.<\/span><\/p>\n

The fund is proceeding to sell several of its investments in order to clear the Margin Account per the terms of the special loan account. Terms require the Investment Fund to completely pay all monies borrowed at least once a year to protect the lender’s position. In effect, the Fund must carry a ZERO balance for 14 days in accordance with the terms. Renewal date is 03\/10\/24; thus the Fund must clear the margin account and then wait until almost month’s end to borrow again.<\/span><\/p>\n

The Margin Account requires a 2% closure fee on the original borrowed amount. In this case, total capital borrowed was $60,104 over two tranche purchases. Therefore, the fee paid to close out this capital draw was $1,202.08. The financial outcome is as follows:<\/span><\/p>\n

Gross Sale of 300 Shares at $260.00\/Share\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$78,000.00<\/span>
\nTransaction Fees to Dispose\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0 (300.00)<\/span><\/span>
\nNet Proceeds from Sale\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$77,700.00<\/span>
\nClosure Fee from Margin Account\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0(1,202.08)<\/span>
\nBasis in Stock\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 (65,524.33)<\/span><\/span>
\nGain on Sale of Norfolk Southern Railroad\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$10,973.59<\/span>
\nDividends Earned During Holding Period\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01,080.00<\/span><\/span>
\nTotal Earnings\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $12,053.59<\/span>
\nAverage Cost Basis:<\/span>
\nTranche #1 Purchased on 04\/27\/2023 (313 Days)\u00a0 \u00a0 \u00a0$17,324.76<\/span>
\nTranche #2 Purchased on 09\/29\/2023 (158 Days)\u00a0 \u00a0 \u00a0 \u00a017,530.40<\/span>
\nAverage Basis of Margin Account Interest Paid\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 3,237.35<\/span><\/span>
\nTotal Average Basis\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $38,092.51<\/span><\/p>\n

Average Annualized Return on Investment\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 31.64%<\/span><\/p>\n

Cash Reconciliation:<\/span>
\n\u00a0 \u00a0 \u00a0Net Proceeds\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $77,700.00<\/span>
\n\u00a0 \u00a0 \u00a02% Closure Fee\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (1,202.08)<\/span>
\n\u00a0 \u00a0 \u00a0Loan Payback\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 60,104.00<\/span><\/span>
\n\u00a0 \u00a0 \u00a0Net Cash From the Sale\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$16,393.92<\/span><\/p>\n

\u00a0 \u00a0 \u00a0Gain on Sale of Stock\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $10,973.59<\/span>
\n\u00a0 \u00a0 \u00a0Interest Paid to Margin Account\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 5,420.33<\/span> *Dollar Amount Recovered at Point of Sale<\/span><\/span>
\n\u00a0 \u00a0 \u00a0Net Cash from the Sale\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $16,393.92<\/span><\/p>\n

Overall, a decent return on the risk given that the Fund used borrowed capital to make the investment. Using a margin account is a sophisticated tool taught in Phase III<\/a><\/span><\/strong> of this site’s lessons about value investing. Act on Knowledge.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Sold Norfolk Southern Railroad – 31.64% Annual Return Today, March 4, 2024 just after 2PM, Norfolk Southern Railway’s stock surpassed $260 per share. The Value Investment Fund proceeded to sell the stock and net $259 per share after paying a $1 per share transaction fee. The fund is proceeding to sell several of its investments […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"site-sidebar-layout":"right-sidebar","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"unboxed","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[47,53],"tags":[],"class_list":["post-24007","post","type-post","status-publish","format-standard","hentry","category-investment-fund","category-railways-pool"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts\/24007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/comments?post=24007"}],"version-history":[{"count":4,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts\/24007\/revisions"}],"predecessor-version":[{"id":24012,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/posts\/24007\/revisions\/24012"}],"wp:attachment":[{"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/media?parent=24007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/categories?post=24007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/valueinvestingnow.com\/wp-json\/wp\/v2\/tags?post=24007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}