Company Insights on BP, Microsoft, and Western Digital.
On August 30, we all chose 5 stocks to evaluate before purchasing. At this time
I chose BP AMOCO, Microsoft, Western Digital, Toys-R-Us, and Fortune
Financial Incorporated. After a few weeks of tracking these stocks, I chose to
keep BP AMOCO, Microsoft, and Western Digital, because the stocks were
relatively stable and most of them were on the rise at this time.
As you are aware, we were given $30,000.00 to invest in our three chosen
stocks, which breaks down to $10,000.00 per stock. We also had to include a
broker’s fee of $500.00 for every $10,000.00 invested.
My first stock was BP AMOCO. On September 8, I purchased 167 shares at
$57.06 per share, which totaled $9,523.00 and incurred a $476.15 broker’s fee,
making the grand total spent $9,999.15.
BP is one of Britain’s biggest companies and one of the world’s largest oil and
petrochemical groups. Its origin dates back to May 1901.
BP owes its origin to one man, William Knox D’Arcy, a wealthy Englishman,
who obtained concession from the Muz-affaru'd-Din, Shah of Persia (1896-
1907) to explore and exploit the oil resources of the country, excluding the five
northern providence’s that bordered Russia. He, shortly after the turn of the
century, invested time, money and labor in the belief that worthwhile deposits of
oil could be found in Persia, which is now known as Iran. Having been granted
the concession; D’Arcy employed an engineer, George Reynolds, to undertake
the task of exploring for oil in Persia.
For seven years, Mr. D'Arcy battled with severe weather, the absence of a
developed infrastructure, the shortage of skilled local labor, the problems of
dealing with neighboring tribes in the absence of a strong central government,
difficult terrain, and an uncertain political situation. These conditions made
Reynolds pioneering task an exceptionally difficult venture. Meanwhile, the
costs mounted stretching D’Arcy’s resources to the point where e sought outside
financial assistance. This came in 1905 from the Burmah Oil Company, which
provided new funds for his venture.
More exploration in Persia followed without success, until eventually, in May of
1908, Reynolds and his helpers struck oil in commercial quantities at Masjid-i-
Suleiman in southwest Persia. It was the first commercial oil discovery in the
Middle East, signaling the emergence of that region as an oil producing area.
After the discovery had been made, the Anglo-Persian Oil Company was formed
in 1909 to develop the oilfield and work the concessions. At the top of Anglo-
Persian’s formation, Burmah Oil Company owned 97 percent of its ordinary