I want to support rebuilding the nation's economy. Therefore, I am lowering my bookkeeping hourly rates from $50/hour to $40/hour, until further notice. - Manuel
I want to support rebuilding the nation's economy. Therefore, I am lowering my bookkeeping hourly rates from $50/hour to $40/hour, until further notice. - Manuel
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Stock Portfolio Summary: Apple, AT&T, and Exxon Mobil

image of iPad with stock graphs

*The following post that I wrote was taken from a discussion board on one of my upper division finance classes.*

As of 09/09/2020, I purchased $6,868.45 worth of stock with virtual/fake money in Apple, AT&T, and Exxon Mobil. As of 10/19/2020, approximately 5.5 weeks later, my portfolio value dropped to $6,340.95 at closing; given these two portfolio values, the rate of return was -7.68004 percent 

If given the opportunity to repurchase these stocks, I would choose to not buy Exxon Mobil partly because the COVID pandemic hit traveling particularly hard this year. Additionally, according to Moody’s report in April 2020, Exxon Mobil was downgraded from a rating of Aaa to Aa1 partially due to negative free cash flows and weak positions. The report also says that it does not appear that Exxon Mobil will improve in the mid-term (Moody’s downgrades ExxonMobil to Aa1; outlook remains negative, 2020). The rate of return for Exxon Mobil was -12.13 percent over the 09/09/2020 - 10/19/2020 period. 

On the other hand, I would keep Apple because its stock remained steady throughout the previous 5-week period. Not to mentionMoody’s released a report on Apple in September 2020 stating how they’re still rated Aa1which is the second-highest Moody’s rating. The Moody’s report also described how they expect the development of the 5G towers will highly improve iPhone sales for the next 3 – 4 years (Moody’s announces completion of a periodic review of ratings of Apple Inc., 2020). Therefore, I think Apple would make for a great investment in the mid-term. The rate of return for Apple was +0.21 percent over the 09/09/2020 - 10/19/2020 period. 

As for the stock in AT&T, I would most likely sell the stock due to its low performance over this period. According to a recent report from Moody’s, they rate AT&T at the Baa2 rating—which is the 9th highest-ranking rating on Moody’s scale. This report continued to state how AT&T is not performing as well partly due to intense competition from other wireless internet companies and the high amount of shareholder dividend distribution (Moody’s announces completion of a periodic review of ratings of AT&T Inc., 2020). The rate of return for AT&T was –9.69 percent over the 09/09/2020 - 10/19/2020 period. 

I would like to purchase some bonds with high credit ratings like Apple to help me diversify among different investment vehicles; however, a disadvantage of bonds would be that their returns are generally on the lower side. As for mutual funds, these are portfolios with investments in different securities like stocks, bonds, and other securities. Mutual funds are usually a great way to diversify among different investments; however, there are also sometimes expenses like annual fees and commission fees that can impact the returns on mutual funds (Mutual Fund Definition, 2020). Regardless, I would also like to invest in mutual funds that focus on specific industries or characteristics, like Blue Chip companies or Renewable energy companies. 

Manuel

 

References 

Moody’s announces completion of a periodic review of ratings of Apple Inc. (2020). https://www.moodys.com/research/Moodys-announces-completion-of-a-periodic-review-of-ratings-of--PR_432432  

Moody’s announces completion of a periodic review of ratings of AT&T Inc. (2020). https://www.moodys.com/research/Moodys-announces-completion-of-a-periodic-review-of-ratings-of--PR_432429  

Moody’s downgrades ExxonMobil to Aa1; outlook remains negative. (2020). https://m.moodys.com/research/Moodys-downgrades-ExxonMobil-to-Aa1-outlook-remains-negative--PR_421820  

Mutual Fund Definition. (2020). https://www.investopedia.com/terms/m/mutualfund.asp  


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