Stock Track Report

7574 Words Oct 22nd, 2013 31 Pages
Finance 363 Stocktrak Final Report
Group 10
Cody Norton, Nick Turner, Shane Siel The stocktrak simulation was very informative. It was interesting to watch the markets with something on the line. My group was in the top 3 much of the semester. Right around the end of the simulation we fell out of the top 3 and finished in the 10th position. We could have tried to change our investment strategy in order to chase the top spot, but in the end we stayed true to our objective.
Objective and Strategy
Our objective is one that most would consider boring. I would describe myself as a long-term investor. When I actually begin to invest real money in the stock market, I will invest in sound companies that pay a decent dividend.
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We invested in firms that operate in different industries such as: automotive, banking, oil, and telecommunications. Those 10 stocks also include ADR’s, which allowed us tap into markets outside the US.
In addition to stocks we invested a portion of our funds in mutual funds. We use mutual funds to capture large market segments. We also use mutual funds to obtain a greater amount of diversity in our portfolio. We invested in mutual funds which captured different types markets such as: the US stock market, the US bond market, global markets, and emerging markets. Besides stocks and mutual funds, we also invested in bonds, but the low rate of return on bonds limited the amount of funds we allocated to them.
We spent time looking over the financial statements of the companies in which we were thinking of investing. After our analysis was finished, we made our initial investments. We made those investments with the idea that we would not be selling them for the duration of the simulation.
In the beginning of the simulation we made a few speculative investments based on some information I got from the web and my own intuition. When those speculative efforts were made we also put in limit orders to protect us from losing too much money. After our first efforts failed to produce positive returns, we decided to leave the speculation component out of our investment strategy. We were confident in our initial investment picks, so we decided to just hold on
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