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Investment Project Essay

1752 words - 8 pages

Becoming a multinational corporation gives the company a chance to grow and profit on a completely different level and could potentially make that corporation a household name worldwide. Not only does this create many opportunities for the company, it allows investors a chance to diversify their portfolios and enter the world of international investing. This project allowed me to learn more about international investing and competition in the global market. Two foreign stocks that trade on U.S. stock exchanges and two U.S.-based multinational corporations were included in the portfolio I created. Anheuser-Busch (BUD), a brewing company founded in 1366, produces, markets, and distributes ...view middle of the document...

The company was founded in 1902 and is headquartered in Minnesota. Exxon Mobil Corporation (XOM) was founded in 1870 and is headquartered in Texas. This corporation searches and produces for crude oil and natural gas. Exxon also manufactures and markets petrochemicals and transports and sells natural gas, petroleum products, and crude oil. It operates in all continents except Antarctica.
After selecting the four stocks for my portfolio, I gathered the historical data over two years and calculated the daily returns for all four stocks, as well as the average compounded daily return, the average compounded annual return, and my portfolio’s return. This data is located in the attached Excel spreadsheet and in the table listed below. Reasons for each stock’s return are also listed.
Name of Firm | Average comp annual return | Reason(s) |
1. Anheuser-Busch (BUD) | 28.75% | Environment friendly & highly profitable |
2. National Grid (NGG) | 22.60% | Operational & Dividend security |
3. 3M Company (MMM) | 30.21% | Currently trading at a new lifetime high |
4. Exxon Mobil (XOM) | 15.92% | Size & potential growth opportunities |
Portfolio (average) | 24.37% | |
In the news, Anheuser-Busch recently announced its commitment to a new global environmental goal to reduce the company’s carbon emissions in logistics operations by the end of 2017. In support of the new goal, the company promised to implement several innovative measures and expand proven practices across its global operations. Another possible reason for Anheuser-Busch’s 28.75% return is the company is considered the beer industry leader. In 2013, Anheuser-Busch recognized 43.2 billion USD revenue. The company’s desire to be “the Best Beer Company Bringing People Together For a Better World” truly shows through all of their environmental efforts. Headlines suggest that two of National Grid’s strengths are the reason for positive returns for the company. In the United Kingdom, National Grid owns the nation’s gas and electricity transmission systems, and because seasons produce a steady and predictable cycle of demand for energy, the firm can budget for future capital requirements with a reasonable degree of accuracy. The amount of security this corporation has over many aspects of the firm is what makes the company attractive as an investment proposition. According to the Street, the possible reason for 3M Company’s 30.2% return is because it was recently identified by Trade-Ideas LLC as a new lifetime high candidate. Trade-Ideas identified 3M as such a stock due to 3M Company having an average dollar-volume of $259.3 million, and on any given day, 3M Company may trade roughly 40,000 shares. MMM is trading at a new lifetime high and this could be serious cause for an increase in return. Without even looking in the news, the first thing that comes to mind when thinking of Exxon Mobil is size. As the second largest corporation in the world, Exxon Mobil has created...

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