Stock investment analysis of Wholefoods, Walmart, and Cisco Inc.

Stock investment analysis of Wholefoods, Walmart, and Cisco Inc.

Stockinvestment analysis of Wholefoods,Walmart, and Cisco Inc.

Currentvalues of the three stocks at the close of the trading period

Company

Current price in ($)

Number of shares

Amount invested in ($)

Wholefoods

32.70

238

7,782.60

Walmart

66.07

136

8,985.52

Cisco Inc.

26.45

176

4,655.20

Totalvalue of the investment: {7782.60+8985.52+4655.20} = $ 21,423.32

Iinitially invested $25,000 to buy the three stocks whereby they weretrading as follows Wholefoods: $41.94, Walmart: $73.74, and CiscoInc. $28.31. Currently the total value of the investment is $21,423.32, meaning I have lost $3,576.68 over the entire period. Theshare prices of the three giant companies have decreasedsignificantly contributing to the loss. Wholefoods share pricedecreased by $ 9.24, Walmart $ 7.67, and Cisco Inc. $ 1.86.

Fromthe figures above it is clear that all the three stocks performeddismally. I chose these three giant companies based merly on theirpast performance, and did not put in other factors intoconsideration. If I were to invest in the same stocks again, I wouldconsider other important factors such as general industryperformance, investor sentiment, and economic factors. In doing so, Iwill hedge against losing so much money over a small period of time.

Ihave learnt three valuable lessons from this assignment

  • Always diversify your shares

  • Never invest in shares based solely on company performance

  • There is nothing like ‘complete knowledge’ of the stock market

Conclusion

Fluctuationsin the stock market will always be inevitable due to the forces ofdemand and supply. Therefore, it is important to be mentally preparedof these changes so that your portfolio can also be in a betterposition to absorb the shocks. This assignment will go a long way inguiding me on the process of share acquisition, stock movements andportfolio management.

Reference

Michie,R. (2011). TheLondon and New York Stock Exchanges 1850-1914 (Routledge Revivals).Routledge.