Investment Portfolio Phase 1: Initial Stock Portfolio Construction

This assignment details the initial phase of constructing an investment portfolio, focusing on the selection of the top five stock choices and the rationale behind those decisions. The student considers factors such as the company's unique selling proposition, financial stability, and potential for generating revenue. The decision-making process is described as logical, based on research into financial ratios, annual reports, market capitalization, and stock prices. The assignment also addresses the importance of diversification across different industries and sectors to mitigate risk. The student confirms that the portfolio is diversified and expresses confidence in the initial choices, indicating a well-considered investment strategy. The assignment also briefly touches on investment psychology, comparing sustainable and profit maximization approaches, as well as offline and online business investments, and discusses key factors for successful investors and ethical considerations in selling investment funds.

INVESTMENT PORTFOLIO – PHASE 1 | Rowida Rizk
1. Log onto your newly created account on studentstocktrader.com.
2. Peruse the investment options.
3. Consider your top 5 choices - DO NOT MAKE ANY INVESTMENTS YET
4. Answer the questions in the attached document
User Name: __________________________________________________
Top 5 choices:
1. Amazon.com Inc._____ _________
2. ___ Coca Cola Bottling Co. Consolidation__________
3. _____ Domino’s Pizza Inc._______ ___________
4. ___ Google Inc._______ ____
5. Delta Air Lines Inc
What factors aided your decision? (ie. I like / use the company’s products, I
have information about the company’s financial standing, My friends
suggested some, most, or all….etc. ). Give reasons for each of your chosen
companies.
The decision as mainly based on the company unique selling type, which
helped in generating high level of revenue for organization. the financial
stability of the companies was mainly used in selected for investment.
Can you categorize your decisions as being emotional vs. logical? (ie. “I like
the company” is an emotional decision, while “I researched the company’s
financial history” could be a rational decision).
The decision is sole based on logical reasons, where the interment in the
stock could eventually help in generating higher level of return. The research
Investment portfolio – phase 1

INVESTMENT PORTFOLIO – PHASE 1 | Rowida Rizk
is conducted on the company, which might help in understanding the return
generating capacity of the company.
What information do you have about your companies’ financial situation?
(financial reports, history in the stock market, market share…etc)
Currently I possess the information regarding financial ratios, the annual
report, the market cap, current share price, 52-weel high and 52-week low of
the companies.
Did you complete this task with or without the help / influence of your
classmate(s)?
No there was no help or influence of the class mate in completing the task
If you were influenced by classmates, who and why?
No, I was not influenced.
Take another look at your portfolio above (5 companies). Have you created
a diversified portfolio? Which industries are included? Why did you choose
these particular industries? Do you want to rethink your choices?
The created portfolio could be considered diversified, as it ranges from the
different industry level. The stock belongs to different industry and sector,
Investment portfolio – phase 1

INVESTMENT PORTFOLIO – PHASE 1 | Rowida Rizk
which could help in diversifying the overall investment. No, I don’t want to
rethink my decision, as I have created a diversified portfolio.
Investment portfolio – phase 1