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Stocktrack

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Submitted By Macho
Words 974
Pages 4
The stock track assignments were very informative. I have never done investing in stock markets, but these assignments provided a true picture of my portfolio although fake money was provided. Overall, I earned a negative return on my portfolio. Although, I finished the class 29th out of 42nd position there have been mistakes that I did and through these I have learned many things. I began investing in the 2nd week of classes, and I bought four stocks from four different industries- Healthcare, Business services, Technology sector, and Asset management industry. I bought these stocks from the mentioned sectors respectively: Aradigm Corp, ABM Industries Incorporated, Bolt technology Corporation, and FBR & Co. The reason why I chose stocks from four different industries is because of diversification. I believe diversification is important in order to avoid the outfall of putting all eggs in one basket. Through week one I learnt that that I would want to diversify my asset allocation along different sectors because different investments provide a different measures of safety, and thus reduce the entire risk of the portfolio. In the later weeks during week 11 and 14, I had purchased stocks in the Latin America and Asia market. The stocks that I bought from these markets were Gol-pn and Eros international. Thus, my portfolio consisted of stocks that were not only from diverse industries but also were from different geographic markets. By 3rd week of classes, my portfolio consisted of the above mentioned stocks and bonds- namely T-Bills and corporate bonds. I believe bonds provide a hybrid sharing- they have characteristics of both stocks and cash. Having a long term investment in bonds reduces the risk, but the primary purpose of having a bond is to generate cash income. As the book mentions,” bonds provide a safe harbor in troubled economic times” (p.

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