As any good investor knows when we invest we need to consider the companies that we have the option to invest in. The first company I could invest in is Coca Cola, an iconic American company. It certainly is a well known company with great distribution and has a nice 11.89% median increase of 12 months. However I personally feel as if the risks are to big including the fact that stock is down over the past week and I am worried how the negative media attention over their funding of obesity research might affect sales. Also I am partially concerned over how the transition of the new COO and CEO will spell out as it could be a rocky start that hurts stocks. The second company which I could invest in is GM, the car manufacturer. The company has a great median return increase of 22% over 12 months which look great as an investor and the company SUVs probably will help boost profits. With all that in mind I am still concerned with the fact that stock value has gone down largely since late June. My fears are also not helped by the fact that the company’s sales in China (a growing auto market) have recently been slow.I also could have invested in Proctor and Gamble. I like how this company is diverse in their holdings with ownership in companies like Eukanuba and Gillette. Likewise the median forecast looks good over .12 months and even with the projected low there is still an...
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...lot to the potential investor so that has to be considered. While the price of GE stock has gone down since April, it is expected to have a median increase of 16.32%. This means that GE stock would be ideal for an investor as a “Buy low Sell high” and its sell of its healthcare unit is also expected to help stocks. However these companies still do offer risks to the potential investor, including staffing issues and accounting issues, can spell trouble for investors. This works because many feel that one weakness of conglomerates is that many people feel that the higher up leaders can have issues since their companies deal with so many types of markets. Ultimately, while there are certainly risks involved with investing in conglomerates like GE, I feel that after weighing the risks and rewards that it would be a good investment in GE with their history and diversity.
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