As a project for this course, Engineering Economics, I have decided to strategically invest one-hundred-thousand dollars of “play” money into five different companies and keep track of my net worth, gain and/or loss, and rate of return after each Thursday of the week, which starts from February 12, 2009 to April 30, 2009. The companies that I will strategically invest in are: Bank of America (BAC), General Electric (GE), Chevron Corporation (CVX), Google Inc. (GOOG), and Apple Inc. (AAPL). As you can see, I had chosen five diverse companies and invested (approximately) twenty-thousand dollars into each company. Though the economy is at a very bad state, I have reasons to believe that my investments were smart choices. STATEMENT OF PROCESS
The first company I chose to invest in was Bank of America (BAC). Though the banks of this country are at a bad state, I believed that a reputable company, such as Bank of America, would gradually jump back on its feet due to the country’s new legislation. At the price of $5.87 per a share, I purchased 3,410 shares for Bank of America. As for General Electric, similar reasons persuaded me into investing for this company. The second company I decided to invest in was General Electric (GE). With the economy going through rough times and the people, as a whole, are holding on to their money, I believed that more people are staying at home more often than before. Therefore, household electronics and appliances are being used more often, which means a higher pay out for GE. At a price of $11.68 per a share, I purchased 1,719 shares for General Electric. In regards to my third investments, the price of gasoline persuaded me to invest in another company. The third company that I invested in was Chevron Corporation (CVX). With gasoline at a more reasonable, steady price tag, I believed that more people would be willing to drive more often than opposed to three to four months ago when gas prices were double. Therefore, big gasoline companies, such as Chevron, would have a larger profit margin. At a price of $69.86 per a share, I purchased 286 shares from Chevron. Though the first three investments had similar strategies behind them, the reasons for the next two investments are quite different. The fourth company that I invested in was Google Inc (GOOG). The reason I chose to invest in Google was simply because of their newly released mobile, operating system named “Android OS” and their new web browser called “Google Chrome”. The Android OS, which debuted in the T-Mobile G1 cell phone, has caught a lot of buzz and has major cell phone companies looking into it as a possible operating system for their future devices. Also, Google Chrome, which is currently in beta testing, has redefined web browsing by specifically targeting one significant feature for web browsers: speed. For these reasons alone, I strongly believed that Google would be a great investment. At a price of $363.05 per a share, I purchased 55 shares from Google. Like Google, the fifth and last investment had similar reasoning behind it. The fifth company that I invested in was Apple, Inc. (AAPL). The reason I chose to invest in Apple was for two reasons. Firstly, Macworld 2009 had just passed and they had displayed a new line up of products that were to be released in the first quarter of 2009. Since then, a new line of iMacs has been released, as well as a new and improved iPod Shuffle, which has kept Apple Stores lively and busy everyday of the week. Secondly, Apple is known for their continuous, innovative ideas and I believe that Apple will have great products for 2009. They have already released two, new products, which seems to be only the beginning. At a price of $99.27 per a share, I purchased 201 shares from Apple. Though my strategies may be labeled as “cliché”, I believe that my investments in these five companies will prove to be quite effective. ANALYSIS OF RESULTS
Since February 12,...
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