Essay about Tips about Investing in the Stock Market

Essay about Tips about Investing in the Stock Market

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Warren Buffet once said “Risk comes from not knowing what you are doing” (Warren Buffett Quotes). With that being said, I would invest in for this project. First I looked at my old notes from my previous personal finance classes to see if I could find any tips about investing in the stock market. The result was learning that it is best to invest in companies with products you use on a daily basis and to see the long term stock prices of those companies. With that I started coming up with a list of companies whose products are used on a daily basis (see table 1).
From there I went to yahoo finance to do research on the stock prices of those companies from January 2, 2013 to January 31, 2014. I had the length of time be one year because I wanted to see the long term performance of the given stocks (see fig. 1). However, I did not want to go back any further then that since we were given a four week time period to track the stocks. After looking at the stock performances of the companies, I had come up with 1 immediately ruled out Ford and Toyota since both stocks fluctuated heavily from January 1, 2013 to January 31, 2014 (see fig. 1).
This left me with Sprint and T-Mobile or Coke and Pepsi. So I decided to take a closer look at Sprint and T-Mobile’s stock performance over the past year (see fig. 2.). Doing so, lead me to discover that not only did T-Mobile stock price fluctuant heavily during that year but Sprint had its initial public offering in July 2013. With this information I decided to go rule out Sprint and T-Mobile since I was not willing to risk money on a company whose stock price fluctuated heavily. Also I was not willing to use the “invest for growth strategy” (Kelly, McGowen and Williams). This is ...

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...d Neil Shah. "Slow Jobs Growth Stirs Worry -- Economy's Anticipated 2014 Breakout Hits a Speed Bump, but Stocks Shrug Off Disappointing Report." Wall Street Journal (2014): A1. 12 February 2014. .
Parker, Tim. The Stock Market Loves the Olympics. 10 August 2012. Web. 12 February 2014. .
Rooney, Ben. SodaStream Pops on Pepsi takeover Talk. 6 February 2014. Web. 12 February 2014.
T.Rowe Price. Diversification. September 2013. Web. 28 February 2014. .
Warren Buffett Quotes. n.d. Web. 14 February 2014. .
Yahoo Finance, 1 Feb. 2014; Web

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