RSM330-Investment-Report (1).docx

Over the process of this project we experimented with

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or more risky investments to contrast our initial approach. Over the process of this project, we experimented with a multitude of strategies and took this as an opportunity for learning and growth. Investment Strategies At the start, we invested in big, stable companies that were providing steady returns and gave these a heavy weight in our active portfolio. Amazon (AMNZ), Google (GOOG) and IBM (IBM) were among the first companies invested in as they have historically yielded consistent positive returns. The strategy was to anchor our portfolio with large companies that were in present indexes such as the S&P 500 (AMNZ, GOOG, IBM) and the Dow Jones Industrial Average (AMNZ, IBM). Moreover, these stocks are minimum volatility given the stable cash flows and recurring continued success. Through analyzing each of these stocks performance, a highlight of our success is Amazon. We initially invested only 3 shares of it at $ 1,451.30 and the stock’s value kept increasing a lot. Therefore, we invested in 50 more shares while it was at a low price of $ 1,371.36 a couple of days ago which proved very advantageous as the price currently sits at 1,417.00. In addition, there is evidence the price will continue to increase as in the past 3 months, its peak price was $1598.38 and with recent acquisitions of Whole Foods, this company has a lot of potential growth. With our base established with powerful technological based companies, it was evident that we needed to diversify the portfolio. 5
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In addition to these companies, an investment philosophy we had was to find undervalued and attempt to exploit their growth and upside, and to diversify our portfolio with all different industries. As mentioned, Masonite International Corporation (DOOR), Illumina, Inc. (ILMN) and Shopify Inc. (SHOP) were primarily discovered through fundamental analysis. However, in hindsight, this may not have been the optimal strategy for our short timeline as these companies needed beyond our timeframe to achieve their growth that we had originally hoped for. A highlight stock in this strategy was Illumina, a biotechnology company that manufactures genetic sequencing systems. They have high growth potential products including NovaSeq and are the first company to branch out into the field of forensic genetics.
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  • Winter '08
  • Becks

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