Stock Journal You start with $25,000 to invest in the following stocks and share

Question

Stock Journal

You start with $25,000 to invest in the following stocks and shares.

1. Determine the total value of your investment.

2. Provide your final opinion / assessment of your investments. Did you make money or lose money? Discuss your results and, based on hindsight, describe what you would do differently.

3. Discuss what you learned from this assignment. Do you believe this assignment will help you in the future in any way?

Week 3 Total week Week 8 Week 10 Stock Name Symbol Industry Price Shares Total Price Shares Total Price Shares Total Apple Inc AAPL Electronics $105.97 94 $9,961.18 $100.23 94 $9,421.62 $98.80 94 $9,287.20 Facebook FB Media $113.44 88 $9,982.72 $119.24 88 $10,493.12 $118.32 88 $10,412.16 Microsoft MSFT Electronics $55.78 90 $5,020.20 $51.89 90 $4,670.10 $52.00 90 $4,680.00

Explanation / Answer

1) Value of the investment at the end of Week 10 = $24,379.36 (as already calculated)

2) I lost money to the tune of 25000 - 24379.36 = $620.64.

In hindsight, I would not have chosen two stocks from the same industry - Electronics - wherein I lost the money. I would have selected the third stock from another industry, so that in case one industry loses the others may gain, thereby offsetting the loss.

3) It is prudent to diversify ones investment into stocks of different industries so that the risk of loss is reduced. Yes, it will help me in future as I will not put 'all eggs in one basket'.

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