STOCK PORTFOLIO
The three companies am investing in include Microsoft (MSFT), Exon Mobil Corporation (XOM), and FedEx (FDX). The first company deals with the manufacture and design of both software and hardware components of computers; XOM is specialized in the oil and gas industry while FDX is in the logistics and transportation sector. The three companies are all public traded (Sorescu & Sorescu. 2016).
The amount to be invested in MSFT, XOM and FDX is $8970, $12865.5, and $3164.5 respectively. The reason for investing in MSFT is selling a lot of computers all over the world resulting to large revenue. Their products are also in high demand. For XOM, the company deals with products that are used in the country by almost everyone. Gas and oil will never go out of demand. Thus, the company will continue to be profitable. Lastly, FDX is a logistics company that deals with transportation of goods. Due to globalization and open trade between many regions, this kind of business is set to thrive and increase its profits.
The amount of shares to be purchased in MSFT, XOM and FDX is 150, 150, and 20 respectively. The amount that can be purchased with $25,000 is 150/8970 for MSFT, 150/$12865.5 for XOM, and $3164.5 for FDX (Sorescu, et al. 2016). This will amount to around $25,319.1. With this amount of shares in the three companies, it is clear that there is diversification. Also, the reason for taking the three companies as the preferred companies of investment is after a well-researched work to make a conclusion.
Reference
Sorescu, A., & Sorescu, S. M. (2016). Customer Satisfaction and Long-Term Stock Returns. Journal of Marketing, 80(5), 110-115.
