Learning Team: Finalizing Stock Research

Who We Are and Our Goal

The members of our team consists of:Elmor Morris BaldeoJoel Cisco-GardunioSamantha JacobsenAaron JAlva Carl MayWilliam NiemannAliza RondezElizabeth Stout Our goal for our portfolio:Invest in reasonable stocks that do not have that much risk but still monitor each company to stay updated with the activity of the stocks.

Stock Pricing Strategy

Stock Pricing Strategy was based on the risk associated to each individual security as well as the potential growth associated to it.Honeywell (HON) – 100 shares for a total of $13,518 investmentCostco (COST) – 100 shares for a total of $20,299 investmentMicrosoft (MSFT) – 100 shares for a total of $10,397 investmentAbbvie (ABBV) – 100 shares for a total of $8,352 investmentKona Gold (KGKG) – 100 shares for a total of $91 investment

Our Five Stocks and Why We Chose Them

Honeywell (HON)The company is stable and consistently earningThey run across four different sectors of the economy, making it well diversifiedCostco (COST)Steady earner for the past year averaging 22% increase each yearConsistently pays out dividends the way expectedMicrosoft (MSFT)Been on a steady upward trend for the past yearDoing well in sales and creating new products, thus making it a good investment choiceAbbVie (ABBV)The dividend yield stands just over 4% and has increased over the past five years by 140%The company should be able to generate double digit percentage growth for years to comeKona Gold (KGKG)Low price per share, thus leaving a lot of room for growthProjected to have a long term increase, meaning it has the potential to be very profitable

Halfway Point: Analysis and Change (if any)

Kona Gold: At the halfway point, three of the initial stocks were firmly set. However, the fourth stock, Kona Gold, was brought up in discussion due to its volatility. Kona Gold had a Beta of -10.68 which is significant. However, with a significantly low price, and a otherwise well-balanced portfolio with positions in several stable and well-earning stocks, the decision was made to stick with Kona Gold as one of the five stocks. Abbvie: The fifth stock, Abbvie was also brought up due to it’s risk value. However, this was mainly due the fact that it is primarily in the pharmaceutical industry which inherently carries a good amount of risk. Again, due to the other three stable stocks, the decision was made to stay with it.

How Much Money Did We Make?

Total Investment: $52,657.47Total Earnings:$2,063

What We Could Have Done Differently

Given the minimal amount of earnings we experience in the last month, would suggest:We were particularly conservative in our portfolio distribution. To accelerate earnings, we could consider diversifying our portfolio investment in stock from companies that are experiencing higher growth in sales in an industry that offers sales or services that are demand such as medical research, healthcare, or scientific technology.

Conclusion

In conclusion, our stock choices were made wisely in the way that our portfolio was diversified. We were rather conservative when it comes to our investing, and we could definitely invest more in certain stocks, or add more diverse stocks to amp up the portfolio.We did choose stocks in all different markets, and though some of them were more of a risk, each one has been beneficial to our portfolio and is working towards our goal.

References:

Yahoo!. (2019). Yahoo! Finance. Retrieved from https://finance.yahoo.com/quote/VBLTX/holdings?p=VBLTXWallet Investor (2019). Retrieved from https://walletinvestor.com/stock-forecast/kgkg-stock-prediction