Investment Analysis and Portfolio Selection: A Study of Amazon, McDonald's, and General Electric
Overview
This journal entry documents a stock investment exercise in which the student allocated $25,000 across three major corporations: Amazon, McDonald's, and General Electric. The paper provides investment rationale based on each company's market dominance, global reach, growth potential, and diversified business portfolios.
What this coursework covers
- Investment allocation table showing companies selected, amounts invested, stock prices as of April 29, and share calculations
- Analysis of Amazon's competitive advantages including e-commerce dominance, AWS, and innovation potential
- Evaluation of McDonald's franchise model and global expansion strategy for long-term growth
- Assessment of General Electric's conglomerate structure across healthcare, energy, and manufacturing sectors
- Summary argument that all three companies represent stable, established brands with consistent revenue and shareholder value potential
Preview
Week 3 Entry Journal
Name
Institution
Course
Professor
Date
Week 3 Entry Journal
Companies selected | Amount invested |
McDonald Corporation | $10,000 |
General Electric Company | $6,000 |
Amazon.com, Inc. | $9,000 |
Stock prices are as of April 29, 4.00 PM EDT
Company | Stock price | Number of shares bought |
McDonald Corporation | $126.49 | 10,000/126.49 = 79 |
General Electric Company | $30.75 | 6,000/30.75 = 195 |
Amazon.com, Inc. | $659.59 | 9,000/659.59 = 13 |
Reasons for Selecting the Above Companies
The companies selected for the share investment are Amazon, MacDonald’s, and General Electric. These are organization that have a strong history of growth, and have show positive performance and growth over the years. There are many advantages associated with the companies selected.
First, for Amazon, it is a global ecommerce brand that has dominated the market. Many people from all corners of the world shop using Amazon. Moreover, the company has other investments such as the Amazon Web Services, Kindle Book Readers, and Siri. All these are innovations that have enhanced the company value and guarantee future growth and progress. The company has potential to grow and optimize its value across many regions of the world. Each day, it is projected that millions of people purchase products through Amazon website or consume at least on Amazon service. Therefore, the shares purchased have potential of returning the value in the future.
On the case of MacDonald’s, the company has also expanded to become a global franchise food joint. This implies that the companies are continuing to grow and expand into other areas of the world. In America alone, many people order different types of foods from McDonald’s.