The three selected public companies are. Whole Foods 2. Wal-Mart stores 3. Cisco
Whole Foods
This supermarket chain especially specialized in organic foods. Though it is low-growth, low-margin sector grocery retail but it is reaching to customer service and satisfaction.
In the last three years, its donations increased around 10% after-tax profits.
2. Wal-Mart stores
Wal-Mart stores, Inc. is a chain of retail stores across the world. Wal-Mart operates in three major segments. It includes financial services also.
The average return on equity over the past five years is around 67%.
3. Cisco
Cisco Systems, Inc. manufactures and sells networking products and related services.
It recently allocated $90 million in cast for acquisitions.
Amount Invested and the reasons:
In the long time perspective the first two companies were chosen. The risk factor is low for these companies and with a constant growth rate. They have been increasing their market growth also exploring new markets.
For Whole Foods, in the last five years i.e 2010 to 2015 its value increased around 115%
For Wal-Mart, in the last five years i.e 2010 to 2015 its value increased around 42%
Recently Wal-Mart entered into one of the big Asian market in India.
The investment for the above two companies are $10,000 each.
The Cisco systems enhanced its services to mobile, wireless, security etc. Recently made acquisitions, this may result some short term benefits.
The investment stock in this company is $5,000.
For Cisco, in the last five years i.e 2010 to 2015 its value increased around 20.69%
The number of shares buying for each of the company
|
Company
|
Unit price
|
No.of shares
|
Amount invested
|
|
Wholefoods
|
$ 41.94
|
238
|
$ 9,981.72
|
|
Walmart
|
$ 73.74
|
136
|
$ 10,028.64
|
|
Cisco Inc
|
$ 28.31
|
176
|
$ 4,982.56
|
Total amount invested = $9981.72+$10,028.64+$4982.56=$24,992.92