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What is your team 's investment strategy and why? The current investment strategy of our portfolio has been to invest 10-30% overseas, keeping core holdings in the United States, focusing the low P/e (price to earning) ratios, betas, and consistent growth.
Overseas- Investing overseas create for a diversification and uncorrelated assets, mitigating risk.
Core stock in the US- Having core holdings makes for easy monitoring and re-balance if necessary. Reducing volatility, limiting negative trading commissions and any effects or taxes.
Low P/e- We look to see a low price to earning ratios (P/e), it values the company 's current share price relative to its per-share earnings. A low P/e can indicate two things such as the company being undervalued and/or they are doing exceptionally well relative to past trends. The reason we don’t want a high P/e is it stipulates that investors are expecting to higher growth earnings, and to compensate for that, the stock price would need to drop.
Dividends- Dividends are cash payments, drawn from earnings, paid to investors. Companies that are …show more content…
As of 1/28/16 HSY.N has a P/e of 38.6, industry of 30.01 and sector of 43.85. We invested 10%, 118 shares, they held a stock price of $85.69 (1/28/1) and as of 3/10/16, the stock price is $91.95, a 7% increase since investing. Main strengths would be their integrative developments in other countries and involvement in communities around them. Ones such as some Hershey’s facility are designed to include parks, housing, and schools for employees families. On the other hand, they do have long-term debt and with the increase in diabetes in the united states, could slowly impact sales, but opportunities such as their increasing market area in global trade can mitigate such
What is your team 's investment strategy and why? The current investment strategy of our portfolio has been to invest 10-30% overseas, keeping core holdings in the United States, focusing the low P/e (price to earning) ratios, betas, and consistent growth.
Overseas- Investing overseas create for a diversification and uncorrelated assets, mitigating risk.
Core stock in the US- Having core holdings makes for easy monitoring and re-balance if necessary. Reducing volatility, limiting negative trading commissions and any effects or taxes.
Low P/e- We look to see a low price to earning ratios (P/e), it values the company 's current share price relative to its per-share earnings. A low P/e can indicate two things such as the company being undervalued and/or they are doing exceptionally well relative to past trends. The reason we don’t want a high P/e is it stipulates that investors are expecting to higher growth earnings, and to compensate for that, the stock price would need to drop.
Dividends- Dividends are cash payments, drawn from earnings, paid to investors. Companies that are …show more content…
As of 1/28/16 HSY.N has a P/e of 38.6, industry of 30.01 and sector of 43.85. We invested 10%, 118 shares, they held a stock price of $85.69 (1/28/1) and as of 3/10/16, the stock price is $91.95, a 7% increase since investing. Main strengths would be their integrative developments in other countries and involvement in communities around them. Ones such as some Hershey’s facility are designed to include parks, housing, and schools for employees families. On the other hand, they do have long-term debt and with the increase in diabetes in the united states, could slowly impact sales, but opportunities such as their increasing market area in global trade can mitigate such