Introduction
The stock market has been gaining momentum among investors in the United States and other parts of the world (White, 2016). The impetus is a result of high returns and reasonable prices of the stocks of some companies in the market. However, studies have indicated that stock investment is one of the riskiest investments that people engage in due to continuous fluctuation of stock prices in the stock market.
In this case, after extensive research on the public trade companies, I will invest $25,000 to CVS Health Corporation, Bed Bath & Beyond Inc. and Amazon.com Inc. The investment will be as follows:
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Amazon.com $15,000
Bed Bath & Beyond Inc. $5,000
CVS Health Corporation $5,000
Cash (Total Investment) $25,000
Responses
Week 8
The investment in all companies was a loss. All the stocks changed except for Amazon.com Inc.
Week 10
The investments yield losses except for Amazon.com Inc. which made a profit. All the stocks changed except for Amazon.com Inc.
Reasons for Investment the Companies
Amazon.com Inc.
Amazon.com Inc. is one ecommerce giants in the world. Buying stock in this company results in high returns to the investors because, in the recent past, the firm has been experiencing noticeable growth in its sales. Another reason is that Amazon has a massive consumer interest. Most findings have shown that most people purchase from Amazon more than other ecommerce companies in United States. This act shows that purchasing stock from this company is less risky as compared to other ecommerce companies’ thus high returns.
Bed Bath & Beyond Inc.
Bed Bath & Beyond Inc. has been experiencing stiff competition from other companies such as Amazon. Despite stiff competition, the company’s stock has remain valuable to investors triggering investors to buy the shares. One of the reasons for investing in the company is that the firm has been improving in its operations despite the stiff competition it faces from giant ecommerce firms. The company has introduced turnaround plans to boost its sales.
CVS Health Corporation
CVS Health Corporation is another best company to invest in its stocks. One of the reasons to invest in the company is its ability to outdo its rivals in the market. With this unique feature, the firm has high sales as compared to its competitors. Another reason to buy shares from the company is its intention to acquire Aetna which has a booming business in Medicare Advantage Plus.
In conclusion, the Amazon.com Inc. is the best company to invest in their stock because of the large command of the customers in the ecommerce business. On the other hand, CVS Health Corporation is also good to invest in its shares because of the long-term innovation that makes it stand out from its competitors. Lastly, investing in Bed Bath & Beyond is good because their turnaround strategy tends to improve the company’s operations; hence, high returns.
References
D’Amico, G., Gismondi, F., Petroni, F., & Prattico, F. (2019). Stock market daily volatility and information measures of predictability. Physica A: Statistical Mechanics and its Applications , 518 , 22-29.
White, J. T. (2016). Outcomes of investing in OTC stocks. US Securities & Exchange Commission DERA White Paper .
