Throughout the semester I had many financial decisions using the tool stock trak. A guide I used was the ING model from homework 2. It listed me as having a moderate aggressive portfolio meaning that with my portfolio being 100% pie that 5% is stability of principal, 15% bonds, large cap value 20%, large ca growth 20%, small/mid/specialty 20%, global/international 10%. Stock Trak helped me create a portfolio worth a positive return of 3.41% which leads to a $34,135.88 increase in cash from when I originally started. This research paper will explain and report the findings of each investment decision made. It will point out required trades that helped my portfolio progress over the semester. This project will be a total understanding of all I learned and received through the course.
Required Trades Sections.
Long Equity.
The first of the required trades was a long equity. The purpose of the long equity trade was to have a long term stock of your choice that will last for the long run. The choice I made for this required trade is purchase of Torch Mark and Coca Cola. The reason for the purchase of Torch Mark is that the price is fairly cheap and has positive growth over the years. This purchase was also made available because Torch Mark Company supports a life insurance company in which I figured no matter economic times this will still be purchased. Also Warren Buffett invests in this stock so I figured it must be worth the long run. The risk of this type of investment is that the company could go bankrupt in the long term and I lose the investment that I made. The return is that if I do nothing over the next thirty years that my investment make a great return on my money. The business that affects this investment is how well the insurance company does with expanding and sales throughout the region. I learned with this type of investment that I must think long term. This trade means just wait it out over the years to really see some return on my investment.