Weekly Blog #4

Due Date: September 29th, 2014

By: Matthew W. Blair

This week was primarily centered on creating our portfolios. I used a generic, plain and simple binder for mine. I had no idea how hard it was to put paper in page protectors; there is no easy way to do it. As of right now there is not much in our portfolios aside from some early research assignments and some necessary items (quote, Mission Statement, etc.).

Outside of the class I made a series of watchlists full of the industry leaders, market indexes and other companies. I researched and read numerous financial statements online to pick stocks and put together the watchlists. Some of the top preforming companies I have on the lists include: Berkshire Hathaway (BRK: A), JP Morgan (JPM), Boeing (BA), etc. It is interesting to see a companies stock go up or down based on a simple action. For example: recently United Technologies (UTX: US) became a huge name in aviation engine production and rapidly the double digit stock elevated to closing over $100 per share on a regular basis. It is so simple, but so fascinating to see the cause and effect. It is how some investors make their money. They take a big risk on a company that is about to merge, sell or receive new management and buy a large amount of shares. Then shortly after the company makes its move the stock either goes up or down. It is a variation of the theory of Intrinsic Value. Till next week.