Ryan Evans Finance 331 12/5/14 Stock Track Final Report 1.) My strategy was to have diversified portfolio that contained stocks from several different sectors with relatively low volatility. I did not want to have a portfolio that was chasing prices but instead invest in solid companies. Therefore I planned to invest in companies that are known for providing positive earnings reports, have successful management teams, and companies that could produce positive returns for a long period of time. Thus I invested in large cap stocks that were proven to be successful in the past and had a vision forward to continue to provide profit for the shareholders such as a company like Apple. I also tried to invest in companies that were down instead of investing in companies that were at an all time high, this hopefully would enable my portfolio to gather the largest returns. This strategy that I formulated gave me the confidence I needed to invest a large portion of money into my portfolio. Start Date: 8/23/2014 End Date: 12/5/2014 # of Shares purchased Value of Stock AS OF 12/6/14 18.37% 200 $21,580 9/26/14 15.92% 300 $34,500 $42,400 11/4/14 11.59% 400 $47,552 Technology $33,690 9/26/14 7.06% 1000 $36,490 Entertainment $26,982 10/30/14 4.25% 300 $28,128 Company Name Symbol Industry Amount Invested Purchased Percentage Dates Return Alibaba BABA E-Commerce $18,446 10/22/14 Apple AAPL Technology $29,889 Palto Alto Networks PANW Technology Micron MU Disney DIS Chipotle CMG Food $59,333 9/26/14 0.20% 90 59,451.30 Tesla TSLA Automotive $5,233.19 10/13/14 0.33% 23 $5,145.33 Go Pro GPRO $32,820 10/22/14 -12.27% 400 $28,872 Technology Total Return for Stock Portfolio = 261,292.95– 248,793.19 / 248,793.19 x 100 =5.02% 3.) Alibaba (BABA) Alibaba was added to my portfolio because of its rapidly growing market and capitalization in China’s fast growing e-commerce industry by connecting small mom and pop shops in China with consumers all over the world Alibaba is doing what Amazon does but globally. Alibaba also continues to acquire stakes in several companies such as shop runner, which has name brands such as Calvin Klein and Tommy Hilfiger. I feel that there room for growth is unlimited and will continue to add good return to my portfolio. Go Pro (GPRO) Go Pro’s addition to my portfolio was more of a personal one; I have always followed Go Pro since it was started in 2002. I got the very first Go Pro and have been keeping up with the new ones ever since. I enjoy watching and participating in extreme sports and no one gets you the up-close and personal experience like a Go Pro. Through the years I have witnessed its growth and popularity grow throughout the entertainment, military, and filming industries. Apple (AAPL) I invested in Apple because I feel like they have a strong management structure and are continuously growing, never regressing. There products are superior to their competitors, being an iPhone and Mac user I can say this from personal experience. Also with the upcoming holidays and Apple’s release of its new iPhone 6 I expect strong 4th quarter earnings. Micron (MU) I invested in Micron because it outperformed their consensus-earning estimate of $0.80 by $0.02 reporting $.82 earnings per share. Micron is a top supplier and manufacturer of memory chips that are used in computers and other electronic devices. Although the competition is fierce, Microns sale volatility is steady due to the diversified portfolio of memory products using DRAM, NAND flash, and NOR flash technologies. Tesla (TSLA) I invested in Tesla because I like the direction that the company is headed and the vision from Elon Musk of where he thinks Tesla can reach. Tesla is the leader in the movement of power cars using electricity rather than gas. Tesla hasn’t reached the middle class market with there high end cars but they recently released there next generation car that will be priced lower attracting a new target market. Palo Alto Networks (PANW) I invested in Palto Alto Networks because they are leaders in the security software group with a 106% surge this year. I also invested in them because at my internship this summer I worked at Raymond James for one of the top financial advisors in the country and he recommended this stock to me. Chipotle (CMG) I invested in chipotle because they are satisfying a consumer want of good, healthy fast casual food. They are leading the restaurant industry and continue to show that their company is healthy and growing. Chipotle recently opened another chain called shop house that is the same structure of Chipotle but with Indian food. Disney (DIS) I invested in Disney because I wanted one stock with a dividend in case of a market decline leading up to fourth quarter earning reports. 4.) Portfolio Weight by Industry (Retail Industry) 2% 13% (Electronic Industry) 7% 12% (Communication Industry) (Semi Conductor Indsutry) 24% 17% (Entertainment Industry) (Food Industry) (Automotive Industry) 11% 14% (Photographic Industry) My portfolio diversification covered several different industries as indicated above, although I had more stocks in technology I still wanted to have a lot of diversification in my portfolio incase a sector showed signs of a bear market my total return for my portfolio would not tank. 5.) 5.02=2.75 + (5 – 2.75) BETA = 1.0089 My portfolio contained a beta of 1.0089, which represents a portfolio with relatively low risk when compared to the market beta of 1. According to my strategy explained in question 1 this is exactly where I was looking to be in accordance with the market. 6.) I felt like my strategy ended up being pretty successful when compared to my portfolio. I wanted to have a portfolio with low volatility that provided solid returns. My beta was 1.0089 and my rate of return for my portfolio was 5.02%, hitting both my goals stated in my strategy. Six out of my eight stocks that I invested in had a return of 4.25% or higher with three of those stocks reeling in a return of 12.15%, 15.43%, and 16.99% rate of return. The one investment I regretted only because of the timing the investment occurred was my purchase of Go Pro, I invested in it when it was at its 52 week high, obviously it wasn’t going to stay there, my return ended up being -12.03% 7.) If I could go back and do this assignment again I would change a few things such as purchasing more stock in energy along with another mid and small cap to give my portfolio more diversification. I also would have executed more trades throughout the semester to try and produce a larger portfolio return along with buying stocks when they were down.