The Worth Funding Fund dropped in worth 11.35% from the beginning of the calendar yr. Even with this drop in worth, the Fund carried out dramatically higher than all different indices:
- The NASDAQ 100 misplaced 32.97%;
- The S&P 500 misplaced 19.44%;
- NASDAQ misplaced 33.1%.
Within the three and one-quarter years since inception, the Worth Funding Fund’s annual common return is extra than simply forward, it’s 57% superior to the NASDAQ 100. The ideas of worth investing generate excellent returns with minimal threat.
Worth Funding Fund – Standing on December 31, 2022
. December 31, 2022 November 30, 2022
. # of Shares Price Foundation Internet Market Worth* Internet Honest Market Worth* Internet Honest Market Worth*
REITs
. – Essex Property Belief, Inc. (Tranche #1) 71.6846 $20,000 $210.92 $15,726.16 $15,119.72
. – Essex Property Belief, Inc. (Tranche #2) 77.7000 20,000 210.92 17,045.83 16,388.48
. – Essex Property Belief, Inc. (Tranche #3) 100.0000 22,221 210.92 21,938.00 21,092.00
. – Essex Property Belief, Inc. (Tranche #4) 180.0000 44,980 210.92 39,488.40 37,965.60
. Sub-Totals 429.3846 107,201 $94,198.39 $90,565.80
Leisure
. – The Walt Disney Firm (Tranche #1) 180.1801 20,000 $85.88 $17,454.04 $15,473.87
. – The Walt Disney Firm (Tranche #2) 200.0000 21,200 85.88 19,374.00 17,176.00
. – The Walt Disney Firm (Tranche #3) 198.0198 20,000 85.88 19,182.18 17,005.94
. Sub-Totals 578.1999 61,200 $56,010.22 $49,655.81
Banking
. – Wells Fargo 100.00 4,267.50 40.29 $4,695.00 $4,029.00
Dividend Receivables (Wells Fargo) 30.00 -0-
Money on Hand (Foundation, Features, Dividends, PUTS) 1,615.11 161.02
Totals (Beginning Price Foundation = $100,000) $172,668.50 $156,548.73 $144,411.63
Accrual adjustment for taxes 4,974.17 7,957.01
Totals Internet of Taxes (Recapture) $161,522.89 $152,368.64
This portfolio’s worth is AFTER TAXES of 28% on all realized good points. Complete taxes paid up to now 25,924.50 28,323.59
Comparative Gross Return Since Inception $187,447.39 $180,692.23
Unrealized Earnings (Worth of Respective Market Costs Much less Price Foundation/Charges at Level of Sale) $(17,764.88) $(28,417.89)
*Internet of transaction charges of $1.00 per share; thus the quantity within the schedule equals the precise market value per share at closing much less $1.00 per share.
Worth Funding Fund – Potential Obligations
The Worth Funding Fund’s present publicity associated to PUT choices is as follows:
- Union Pacific Railroad – offered in Feb 2020 with a strike value of $155/share and an expiration date of January 21, 2023 $20,000
- JP Morgan Chase – offered in Might 2022 with a strike value of $80/share and an expiration date of June 16, 2023 $20,000
- Norfolk Southern Company – offered in September (200 Shares) with a strike value of $145 and an expiration date of January 21, 2024 $29,000
- Essex Property Belief – Offered 12/30/22 (100 Shares) with a strike value of $170 and an expiration date of July 21, 2023 $17,100
- Union Pacific – Offered 12/30/22 (200 Shares) with a strike value of $145 and an expiration date of August 18, 2023 $29,200
- L3 Harris Applied sciences – Offered 12/30/22 (100 Shares) with a strike value of $150 and an expiration date of October 20, 2023 $15,100
- Marriott Accommodations – Offered 12/30/22 (100 Shares) with a strike value of $90 and an expiration date of January 19, 2024 $9,100
*Complete monetary dedication = $139,500
Market costs on December 31, 2022 are:
- Union Pacific Railroad (Expiration on 01/21/2023) $207.07 (Strike Worth of $155.00) Present Deviation = 33.59%
- JP Morgan Chase (Expiration on 06/16/2023) $134.10 (Strike Worth of $80.00) Present Deviation = 67.62%
- Essex Property Belief (Expiration 07/21/23) $211.92 (Strike Worth of $170.00) Present Deviation = 24.66%
- Union Pacific (Expiration 08/18/23) $207.07 (Strike Worth of $145.00) Present Deviation = 39.35%
- L3 Harris Applied sciences (Expiration 10/20/23) $208.21 (Strike Worth of $150.00) Present Deviation = 38.80%
- Marriott Accommodations (Expiration 01/19/2024) $148.89 (Strike Worth of $90.00) Present Deviation = 65.43%
- Norfolk Southern Corp (Expiration on 01/21/24) $246.42 (Strike Worth of $145.00) Present Deviation = 69.94%
*Deviations > 25% are thought of favorable.
Worth Funding Fund – Earnings 12 months-To-Date
First Quarter Earnings:
. Offered Huntington Ingalls 03/07/22 Internet Realized Acquire $5,557.05
. Dividends Earned (First Quarter 2022) 271.34
. Internet Earnings from Gross sales of PUT Contracts 573.10
. First Quarter Earnings $6,401.49
Second Quarter Earnings:
. Internet Earnings from Gross sales of PUT Contracts $3,908.57
. Dividends Earned 607.46
. Second Quarter Earnings $4,516.03
Third Quarter Earnings:
. Internet Earnings from Gross sales of PUT Contracts $1,040.00
. Dividends Earned 654.26
. Third Quarter Earnings $1,694.26
Fourth Quarter Earnings:
. Realized Features from Sale of Wells Fargo $7,623.19
. Sale of PUT Contracts (Essex Property Belief/Union Pacific/L3 Harris/Marriott) 915.00
. Dividends Earnings (Wells Fargo) 30.00
. Fourth Quarter Earnings $8,568.19
Complete Realized Earnings 12 months to Date 2022 $21,179.97 (12.49% Realized Return to Date)
Taxes Paid to Date 2022 – $5,930.39 (28% of the $21,179.97 Realized Via December 31, 2022)
EOY Reconciliations/Abstract Stories
Lifetime Earnings/Fund Steadiness at Market Valuation
Preliminary Fund Capitalization $100,000
Realized Earnings (2019), 1 Qrt of Exercise 2,703
Realized Earnings (2020) 23,608
Realized Earnings (2021) 53,661
Realized Earnings (2022) 21,180
Sub-Complete Fund Worth Earlier than Taxes and Unrealized Features/Losses 201,152
Much less Taxes Paid Lifetime to Date (28,324)
Much less Unrealized Features/Losses at 12 months-Finish (Tax Adjusted) (20,461)
Fund Steadiness if Cashed Out 12/31/22 (Internet of all charges/prices to terminate) $152,360 *Matches Fund Steadiness Above w/Rounding Error of $2
Liftetime Earnings/Fund Steadiness at Price
Complete Realized Earnings Lifetime to Date: $101,152
Much less Taxes Paid Via 12/31/22 @28% 28,324
Internet Capital Account Steadiness From Earnings $72,828
Preliminary Contribution 100,000
Worth Funding Fund at Price $172,828
Price Foundation in Investments $172,669 *See Above Price Foundation Column Standing at 12/31/22
Money in Financial institution 161
Worth Funding Fund at Price $172,830 *Spherical Error of $2
Worth Funding Fund Sumary Report – Earnings 2019 2020 2021 2022 Totals
Realized Earnings from Safety Features $2,327 $22,277 $48,349 $13,181 $86,134
Realized Earnings from Dividends 376 904 2,451 1,563 5,294
Relaized Earnings from Sale of PUT’s -0- 427 2,861 6,437 9,725
Totals $2,703 $23,608 $53,661 $21,180 $101,153
Abstract of 2022
Calendar yr 2022 was profound within the quantity of general losses for all indices. No single index fund skilled an enchancment in worth throughout 2022. The Worth Funding Fund additionally skilled a lower in worth throughout the identical time interval. Nonetheless, its respective lower in Fund worth was considerably decrease than all different indices. This can be a direct reflection of the first precept of worth investing – solely buy prime quality securities. Total, the Fund earned a 12.57% return on its authentic starting of the yr Fund stability of $168,430. It ended the yr holding three high quality investments – Essex Property Belief, The Walt Disney Firm and Wells Fargo. As soon as the market recovers, the present portfolio will dramatically outperform the opposite indices. Act on Data.
© 2023, David J Hoare MSA. All rights reserved.