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/
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