Using Investment Philosophy and Strategy to Make Investment Decisions
1. Which investments did you chose?
The portfolio requires a mix of United States companies and foreign companies. The three investment that I chose consist of China Life Insurance, Proctor & Gamble, and Wells Fargo. The following is a portfolio that delineates all the pertinent information of the investments:
Stock
Symbol
Cost/Share
Purchase Price
Number of Shares
Total Cost
Gain
Transaction Costs
Total Costs
Proctor & Gamble Company
PG
$ 87.58
$ 86.95
1,600
$ 139,120.00
$ 1,008.00
$ 347.80
$ 139,467.80
Wells Fargo & Company
WFC
$ 54.26
$ 53.50
1,700
$ 90,950.00
$ 1,292.00
$ 227.38
$ 91,177.38
China Life Insurance
LFC
$ 17.41
$ 17.24
7,000
$ 120,680.00
$ 1,190.00
$ 301.70
$ 120,981.70
In total, the investment of these three stocks will amount to $351,626.88 with the rest of the funds being set aside for future investments.
The following are eight financial ratios and other measures for analyzing the three investments in the portfolio. These financial ratios are based on the company’s most recent financial quarter ending June 2017.
Financial Ratio
Wells Fargo & Company
China Insurance Company
Proctor & Gamble
Profit Margin
This ratio indicates the profitability of a company...
References
Morrell, A. (2017). Wells Fargo beats on earnings, misses on revenue. Business Insider.
Qwoter. (2017). 6 Different Investment Philosophies. Retrieved from: http://www.qwoter.com/college/Trading-Psychology/different-investment-philosophies.html
Yahoo Finance. (2017). China Life Insurance Company Limited. Retrieved from: https://finance.yahoo.com/quote/LFC?p=LFC
Yahoo Finance. (2017). The Proctor & Gamble Company. Retrieved from: https://finance.yahoo.com/quote/PG?ltr=1
Yahoo Finance. (2017). Wells Fargo & Company. Retrieved from: https://finance.yahoo.com/quote/WFC/
" This is significant because it shows how some critics of contrarian investing will often point to the various instances of speculation and assume that it is contrarian investing. In some cases the psychology of consumers can become so extreme, that the definition of what is speculative expands greatly. As a result, using contrarian investing in conjunction with other indicators / tools can help prudent investors and traders, be able to
These two techniques of reflexive and logic-reasoning are very effective in creating consensus and insight form multiple decision makers over time (Muller, Turner, 2010). In the long-term, this technique of decision making and the involvement of the leaders on Kava can potentially reduce their resistance to the development as well. After Nik and his team have defined their common vision, mission and objectives, they need to also define the strategies
Dimensional Fund Advisors Analysis Philosophy of DFA Dimensional Fund Advisors (DFA) was an investment firm based in Santa Monica, California that was dedicated to the principle that the stock market was "efficient," therefore implying that while over any given period some investors by luck would outperform the market and others would underperform, no one had the ability to consistently pick stocks that would beat the market (Cohen 2002, pp.1). In addition to
Health Care -- Lean Philosophy on Cost Reduction and Quality Improvement Lean Philosophy is initially traced back to Henry Ford's innovative assembly line, revolutionizing manufacturing while failing to provide true variety. Building on Ford's concepts Toyota management established a Lean Philosophy in the 1930's and 1940's that focused on production flow and waste elimination, resulting in rapid, low cost and high quality processes, along with simpler and more accurate management. These
Strategy Over the last several years, the markets have faced a tremendous amount of volatility. Part of the reason for this, is because the global financial crisis and subsequent recession caused the Dow Jones Industrial Average to decline to 6,547. Then, it would climb over 68% to cross above 12,000. This is important, because it is showing how there are tremendous opportunities for investors. However, in order to attain above
76). As automation increasingly assumes the more mundane and routine aspects of work of all types, Drucker was visionary in his assessment of how decisions would be made in the years to come. "In the future," said Drucker, "it was possible that all employment would be managerial in nature, and we would then have progressed from a society of labor to a society of management" (Witzel, p. 76). The
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now