Stock Portfolio
Policy statement
• Risks and rewards of investing in the stock market
• How to diversify
• How to buy and sell stocks
Implement the plan by constructing the portfolio
• Different approaches for making the best stock selections – and when to buy or sell them
• How to obtain information and analysis about companies and industries
• How to read and interpret corporate financial and non-financial information
Track the progress of the stocks
• How to track the progress of your stocks
• How to stay informed about any news or actions that may affect the value of your --stocks
Performance evaluation
Mission statement * Investing initial total amount of $10,000 equally into twelve different stocks * Diversifying our portfolio to decrease the portfolio risk to acceptable level * To increase the risk-adjusted return of our stock portfolio
Risk profile * Setting our cut-loss spot of portfolio in 5%. In addition, the cut-loss spot of individual stock is also set as 5% * After self-assessment, we conclude that we are moderate in portfolio, which means we don’t mind a little bit of fluctuation in our investment returns, but we would uncomfortable with significant ups and downs
The criterions of stock selection * Industry * Undervalued industries in the market. For example, after economic crisis, mineral resources were undervalued * Potential development * Company * Financial stability * Products and services were promising in the market * Effectiveness in operations, referring to ROE data * Outstanding performance and fast growth * Stability in operations * Beta between 0.5-2.5
The criterions of assets allocation (Diversification) * To select stocks in different sectors and industries to diversify the portfolio * * To select stocks with foreign business to reduce the country risk
The timing of buying or selling stocks * To evaluate the stock's value whether it is overvalued or
• Risks and rewards of investing in the stock market
• How to diversify
• How to buy and sell stocks
Implement the plan by constructing the portfolio
• Different approaches for making the best stock selections – and when to buy or sell them
• How to obtain information and analysis about companies and industries
• How to read and interpret corporate financial and non-financial information
Track the progress of the stocks
• How to track the progress of your stocks
• How to stay informed about any news or actions that may affect the value of your --stocks
Performance evaluation
Mission statement * Investing initial total amount of $10,000 equally into twelve different stocks * Diversifying our portfolio to decrease the portfolio risk to acceptable level * To increase the risk-adjusted return of our stock portfolio
Risk profile * Setting our cut-loss spot of portfolio in 5%. In addition, the cut-loss spot of individual stock is also set as 5% * After self-assessment, we conclude that we are moderate in portfolio, which means we don’t mind a little bit of fluctuation in our investment returns, but we would uncomfortable with significant ups and downs
The criterions of stock selection * Industry * Undervalued industries in the market. For example, after economic crisis, mineral resources were undervalued * Potential development * Company * Financial stability * Products and services were promising in the market * Effectiveness in operations, referring to ROE data * Outstanding performance and fast growth * Stability in operations * Beta between 0.5-2.5
The criterions of assets allocation (Diversification) * To select stocks in different sectors and industries to diversify the portfolio * * To select stocks with foreign business to reduce the country risk
The timing of buying or selling stocks * To evaluate the stock's value whether it is overvalued or