This is the week you have been waiting for—to see if you are walking home a pretend millionaire, or whether you would be finding a side job to recoup your losses! This is the last of the three stock j

Thomas Kruah

Strayer University

Professor: Dr. Cecily Anthony

Principles of Finance

04/19/2020

I want to have a diversified portfolio because I do not want to put all my eggs in one basket. The US companies I have selected for investment are Wal-Mart, Tesla, and Amazon. These companies are very different in nature and belong to different industries. Wal-Mart carries FMCG (Fast Moving Consumer Goods) products that customers buy and consume on a daily basis. Tesla is an electric vehicle manufacturing company that sells expensive, luxury cars. Amazon is an online store that sells all kinds of commodities ranging from everyday goods to prom dresses.

I chose Wal-Mart because the share price was attractive and I could easily incorporate it in my portfolio. Wal-Mart is a platform that provides consumers with every day products. On an average, 37 million people walk into Wal-Mart stores every day, all around the world. This number is so large that even if it decreases in the next few years, millions of people will be shopping from Wal-Mart which means its shares will not lose their worth and will always be very valuable. I will invest $ 1000 out of my $ 25,000 and bought 8 shares of Wal-Mart which are priced at $ 132.4 which will make up about 4 % of my investment. (Yahoo! Finance)

I chose Tesla even though the price per share is a whopping $ 756.7. Tesla is a luxury car brand which only a very small percentage of people can afford. It is not a brand which gets sold a lot. That being said, the return on the shares is phenomenal. The reason behind this is the simple fact that every time Tesla upgrades an already existing vehicle, it increases the price. Same thing happen with the launch of a new vehicle, the price increases with new systems and technologies which automatically means more return for investors. Out of $ 25,000, I will invest $ 8,000 in Tesla and bought 11 shares at $ 756.7 per share which will make up 32 % of my total investment. (Yahoo! Finance)

The reason behind choosing Amazon is the attachment people have with the platform. Amazon is somewhat of a Pandora for customers because every time they open it, something new and innovative comes out. One can find everything from a fork to a water motor on Amazon. Upon receiving a faulty product, customers leave a bad review but that is as far is it goes. The trend shows that nobody stops using Amazon because customers are visibly attracted and emotionally attached to the platform because of its innovative products that are priced just right. This gives investors a huge benefit in terms of all profit and no loss situation. The price of Amazon’s shares is $ 2415.8 per share which I initially found unbelievable. I will invest $ 16,000, buying 7 shares, out of my $ 25,000. This will take up the most part of my investment portfolio, approximately 64 %. (Yahoo! Finance)

Yahoo! Finance. (n.d.). Retrieved april 20, 2020, from Yahoo! Finance: https://finance.yahoo.com/quote/WMT?p=WMT&.tsrc=fin-srch

Yahoo! Finance. (n.d.). Retrieved from Yahoo! Finance: https://finance.yahoo.com/quote/AMZN?p=AMZN&.tsrc=fin-srch

Yahoo! Finance. (n.d.). Retrieved april 20, 2020, from Yahoo! Finance: https://finance.yahoo.com/quote/TSLA?p=TSLA&.tsrc=fin-srch