Using the stock market to invest in securities can be risky but with a little research and a carefully thought out investment strategy the road to financial security can be yours. The purpose of this paper is to outline an investment strategy that focuses on return on investment (ROI). ROI is "a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments" (Investopedia, n.d.). For this paper our group is given $10,000 to invest in the stock market. We will attempt to apply the principles of ROI to grow our initial investment over time. "To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio" (Investopedia, n.d.). Example: (Gain from Investment - Cost of investment) ÃÂ· Cost of Investment.
We will present a diversified portfolio of four stocks from the financial, consumer goods, and services sectors.
To meet our goals, we decided to select only stocks that for the past three years have demonstrated a rate of return of at least ten percent (10%) or better. The four stocks we choose are Disney, Starbucks, Anheuser-Bush, and JPMorgan Chase.
StarbucksStarbucks is a company which has been able to sip bucks from our wallets. Shares have grown more than 1,500% in the last 10 years. Starbucks has a strategic goal to move into the global market which it feels will increase revenues by 20%. A company that can create the illusion of compassion with high standards of hiring and staff training is starting off on the right foot at earning a high rate of return. If a barista can do three steamed milks in a minute and keep up that pace all day, then he/she's...