Positive Returns On The Investment

Introduction

The whole intention of this project was to invest in a variety of stocks in an attempt to report positive returns on the investment. A total of five stocks were invested in. The project runs for a total of six weeks. In the end, an investment was made, and an assessment was done after six weeks to see if there was a positive return from the investment. For my portfolio, I picked Anheuser-Busch In Bev Sa/Nv (BUD) and purchased 175 stocks; Tesla (TSLA) and purchased 130 stocks; Nike (NKE) and purchased 105 stocks; Cannabis Wheaton Income Corp (CBWTF) and purchased 15,000 stocks and Miracle-Gro (SMG) and purchased 125 stocks.

Why I Picked Them

For BUD, the reason I picked this stock is that it is a beer that I drink, and I like it as well as my uncle’s choice. I feel that this company will never go under because too many people like beer. For TSLA, it is a stock that I actually hear of from one of my mother’s friends, and they said they made a killing, so I was curious to see what it was all about. Not to mention I like the car and hope one day when I make my own money I will be able to buy one for myself. For NKE, I like it because I wore a lot of the clothes and shoes and was just curious to see where they stood with other stocks. For CBWTF, the stock I am very curious about because of many reasons. The first reason is I feel that this is in an industry that will make a killing as soon as it goes legal federally and across all states. Second, my grandmother has cancer and uses it, and it has been a lifesaver for her. And last because my family would love to open a dispensary in the future. For SMG the stock I picked solely because of playing baseball and knowing how important it is for the baseball fields to have good fields.

Investment Analysis

In the first week, the stock portfolio was valued at $100,038.10. At the end of week two, the portfolio was valued at $99,986.55. This was a loss of $51.55. It represented a loss of 0.05%. All the stock lost their value except CBWTF, which gained a total of 7.94%. At the end of week three, the value of the portfolio was $90,131.35, which translated to a loss of $4,797.50, which was 5.05%. The reason was due to the loss of all the stocks except BUD, NKE and SMG. Further, at the end of week six, the value of the portfolio was $93,434.20, which was a loss of $228.30 and was 0.24%. The reason was to loss of BUD, NKE and SMG.

Theories

The investment theory used in the investment of the portfolio is the efficient market hypothesis. The identification of the undervalued assets and the stock with the potential for growth should be included in the portfolio. When one has a higher stock portfolio, one can benefit from the general increase in value. Another strategy to use is the greater fool theory, which means that one buys stock expecting to sell at a higher price to another person. Eventually, the rational expectation theory, where one acts in a way that is logical, and the expectation of the future is put into consideration.