25 Years of Investing

In the last unit of the first senior steam class, Economics, we talked about money in the market. We focused on how money moves through the government and through the market and how quickly the market can change. This lead us into our action project where we were given a sum of money that we had to spend over a 25 year period by investing it in different companies. This project was incredibly challenging but it was worth it. I learned a lot of things about investing and the goals I want to set for myself. 

__________________________________________________________________

The scenario goes like this: 18 years ago, my guardian angel set up a college savings plan for me with an initial investment of $8,500. My angel contributed $50 each month to the college savings plan ($600 yearly). After 18 years at an average annual interest rate of 7%, compounded annually, the plan is now worth a hefty lump sum. Yesterday, I cashed out your plan and deposited the money in a brokerage account to invest on my own.

After those 18 years in the bank, that $8,500 is now $49,128.87. In order to get the most out of this money, I am investing in three different companies. My investment philosophy is that I want to make money, but I don't want to invest in things that I dont potentially agree with. I will give some leeway for something that I know would make me a lot of money but it goes against my morals a little bit. I will draw the line when it comes to a company that goes completely opposite from my morals. I have a pretty high risk tolerance. After taking a quiz online with the Rutgers New Jersey Agricultural Experiment Station, I scored a 37 which means I have a high risk tolerance. I like to take risks and that shows in my investments.

While doing this I had to think a lot about my values and which type of companies follow them. I value environmentally friendly, animal friendly, and profit driven companies. I want companies that look out for animals and the environment but I also want to make money. I would love a company that did all three but if a company that could make me a lot of money was animal friendly but not incredibly environmentally friendly, I would sacrifice that so that I would be able to reach my SMART goals in the time I want to achieve them.

I set some SMART goals for myself to achieve within 25 years. I chose 3 goals I would like to achieve; one after 1 year, one after 5 years, and one after 25 years. My goals are as follows:

1-year goal: Have enough money to take a summer off to travel- $7,000 

5-year goal: rent a nice apartment in california- $8,000 

25-year goal: own a lake house in Wisconsin/ Michigan -$34,000 

When it comes to investing, I chose three companies: Apple, Nike, and Disney. I chose to dive deeper into two of my three companies: Apple and Disney.

Disney is a huge company that has been around for years. They focus on many different elements such as clothing, toys, and most importantly: movies. They have created hundreds of movies over the time of their existence and have also created thousands of shorts. Diversification is very big at Disney. After getting a lot of heat about all of their movies being about white people, they switched it up and started making their movies about all different races, most recently they are releasing a new Disney Princess movie called Moana. They also recently bought the star wars franchise and are releasing 6 new movies under that, 1 of which has already come out and gotten rave reviews. Their economic moat is very large because of the companies that they work with. Their P.E. ratio is 23.32 (industry) and their dividend yield is 1.53%. This companys makes a lot of family friendly movies and they are a very family oriented company, with all of their new movies coming out, they are a very smart investment. Disney is definitely a long term investment.

Apple is a gigantic corporation that has been around since 1976. They specialize in electronics: phones, computers, tv systems, headphones, etc. They have released lots of different types of phones over the years and just recently released the iphone 7 and the iphone 7+. These have caused the market to change drastically. Every Time they release a new product their are lines of people ready to get their products. Apple’s economic moat is very strong since lots of people won't try to do the exact same thing as apple because it wouldn't be beneficially if it's not the real thing. Apple's risk factor is most likely very high since they are always changing new things on the iPhones that people may or may not like. Their P.E. ratio is 26.08. This would also be a very smart investment for me to make.

The time horizon comes into play when investing no matter what. I am spreading out my stock investments based on how they have been doing for the past year. If one of my stocks is dropping, I will only invest in that one for 1 year, and if a company is doing well, I will invest in it during one of my longer periods.

I created 3 investment portfolios for each goal I set for myself.


For my 1 year goal, I put in $7,000:

60 shares of NIK @ $51.80 ($3,108 total) (35% of portfolio)

30 shares of APPL @ 114.97 (3,449.10 total) (65% of portfolio)

1 year. MF, 2016

The grouping of NIK and APPL had an expected ROI of 21.08%. In the graph above I have sectioned off a pie chart to show how my portfolio was divided.


For my 5 year goal, I put in $8,000:

50 shares of NIK @ 51.80 (2,590 total) (30% of portfolio)

50 shares of DIS @ $93.83 ( 4,691.5 total) (70% of portfolio 

5 year. MF, 2016

The grouping of NIK and DIS had an expected ROI of 106.8%. In the graph above I have sectioned off a pie chart to show how my portfolio was divided.

For my 25 year goal, I put in $34,000:

40 shares of DIS @ 93.83 (3,753.2 total) (50% of portfolio) 

70 shares of APPL @ 114.97 (8,622.75 total) (50% of portfolio)

25 year. MF, 2016

The grouping of DIS and APPL had an expected ROI of 6903.03%. In the graph above I have sectioned off a pie chart to show how my portfolio was divided.

The three investments that I made are in all different stock sectors. Nike is ruled under consumer goods, Disney is entertainment, and Apple is electronics. I wanted to make sure that the companies I was investing in were not all selling the same type of thing. I wanted to have a lot of diversity so my investments fall into different categories. Throughout this process I made a few assumptions for the sake of the project:

-The ROI will stay the same

-The stock market won’t crash during the 25 years I am investing

-The real estate market won’t crash.

After a lot of investing, all of my goals will become a reality. I invested in the right companies and based on the math I did, all of my goals should be reached by the time allowed for each one.


_________________________________________________________

References:


"Apple Inc's ROI per Quarter." Apple Inc (AAPL) Return on Investment ROI Quarterly, Average High and Low, Overall Ranking from Mar 26 2016 to Mar 28 2015. CSI Market Company, 2016. Web. 29 Oct. 2016.


"AAPL Profile | Apple Inc. Stock - Yahoo Finance." AAPL Profile | Apple Inc. Stock - Yahoo Finance. Yahoo, n.d. Web. 29 Oct. 2016.


"BRING INSPIRATION ANDINNOVATION TO EVERYATHLETE* IN THE WORLD." About Nike. Nike, n.d. Web. 29 Oct. 2016.


"DIS Profile | Walt Disney Company (The) Commo Stock - Yahoo Finance." DIS Profile | Walt Disney Company (The) Commo Stock - Yahoo Finance. Yahoo, n.d. Web. 29 Oct. 2016.


"NKE Profile | Nike, Inc. Common Stock Stock - Yahoo Finance." NKE Profile | Nike, Inc. Common Stock Stock - Yahoo Finance. Yahoo, n.d. Web. 29 Oct. 2016.


"Nike, Inc. (NKE) Ownership Summary." NASDAQ.com. Nasdaq, n.d. Web. 29 Oct. 2016.

Princess Diana of Wales

In the second unit of the Journalism class, we focused on sound. We looked at a lot of different types of podcast about different things and began to gather different tips and ways to talk about a topic with just your words. For the action project we were tasked with finding someone influential from the 20th century and creating a podcast about them. We had to interview two people and find sound clips of the person we chose. For my project I chose Princess Diana of Wales. Something that I enjoyed about this project was the freedom to choose whoever I wanted from the 20th century. Something that was hard for me was finding which sound clips I wanted to use for this project. I am really happy with how my project turned out and I hope you enjoy it.
_______________________________________________________________________

WHEN	WHO/HOW	WHAT
0.00-17.612 17.612-39.752 39.752-1.01.813 1.01.813-1.10.543- 1.10.543-1.36.467 1.36.467- 1.46.748 1.46.748- 1.52.315 2.06.715-2.05.945 2.09.650- 2.40.415- 2.41.117-2.45.523- 2.24.470- 4.02.713- 4.04.303- 4.24.693- 4.28.840- 5.11.874- 5.13.379- 5.24.639 5.24.639- 5.48.600 5.27.768-5.46.576	[  Background music}]                 [MF] [Diana] [MF] [Diana] [MF] [MF] [RD] [Diana] [MF] [MNF] [MF] [MNF] [Diana] [MF]	Background music starts (Candle in the Wind by Elton John Instramental) Hi. I’m MF from GCE Lab School today I am going to talk about a voice that had a huge impact on people around the world: Princess Diana of Wales. This voice was important to the 20th century because not only was she a princess, she was also a human rights activist. She spoke on many issues that people face daily and was even able to connect them to her own life. From early childhood, many had felt  they were expected to be perfect but didn’t feel they had the right to express their true feelings to those around them. Feelings of guilt of self revoltion and low personal esteem.   She also focused a lot of her time on children's rights in different countries. She spent her time working with organizations from all around the world ranging from Turning Point to Red Cross . 1989 marks the celebration of Turning point: a charity which, in its 25 years, has gained enormous experience in dealing with problems related to drug and alcohol misuse. Today, Turning Point is the largest national voluntary organization catering to those who drink, drug and mental health problems.   1.36.467- 1.46.748- Although she got a lot of hate for some of the organizations she worked with, she never let that stop her. Diana was born into British nobility and became a princess once she married Prince Charles. 1.46.748- 1.52.315-  I’m going to be talking to my friend who also has a connection with Princess Diana. There are many issues going on in the world. And the one admirable thing about Diana was that she cared so much about these problems. She actually traveled to countries devastated by disaster and disease and tried to connect to the people affected. When no one listens to you, you feel no one is listening to you, all sorts of things start to happen. For instance you have so much pain inside yourself, that you try and hurt yourself on the outside because you want help, but it’s the wrong help your asking for. People see it as crying wolf or attention seeking and they think because you’re in the media all the time, you’ve got enough attention. But I was actually calling out because I wanted to get better in order to go forward and continue my duty or my role as wife, mother, princess of wales. Now I am going to be talking to someone else who also had a connection to Princess Diana. I remember watching her entire wedding on T.V. I don’t know how long it was but it was long. What was also long was the train on her dress, it was like 20 feet long or something. It was beautiful, and the wedding was beautiful, and I watched the whole thing and it seemed like they were in love but, it came out later that it was probably a marriage more of convenience then it was of love. He was, I think, in love with another woman who he ended up marrying after she died but I think that Diana didn’t get along with his mother, the queen, and she felt kind of trapped. But she did her own thing and I think she did a really good job of being the princess and going around and helping people especially people with aids and children. Princess Diana spent so much time focusing on other people’s problems, she wasn’t able to focus on her own. Her marriage was failing and she couldn’t exactly divorce Prince Charles because she would look incredibly bad to the entire country. She had to deal with a failing marriage, depression, and an eating disorder all on her own for a long time while still having a brave face in public. And I think her depression, I guess she was depressed and that was probably because of her life even though it would seem like the life of a princess would be a fairytale but I don't think it was for her. I remember when she died I was in a bar in Waupaca, Wisconsin with my sister and some friends and we were playing pool and it came on the TV that she died in the car crash in London and it was, while no body cried, it was really kind of shocking. Well it gave everybody a wonderful new label: is Diana’s unstable and Diana’s mentally unbalanced; and unfortunately that seems to have stuck on and off over the years.    Diana was able to be a powerful voice for so many people all around the world. Lots connected with Diana in different ways. She spoke a lot about women and connected most of her speeches to them but there were still lots of men that admired her as well. When she died a lot of people, even those that didn't live in wales, were incredibly sad and heartbroken. Background music continues, fades out.