Indicate The Companies You Are Investing In; Select Three U.

Indicate The Companies You Are Investing Inselect Three 3 US Compani

Indicate the companies you are investing in. Select three (3) US companies that are publicly traded. Decide how to divide $25,000 across these companies, providing the amount allocated to each, along with a brief reason for your choice. After selecting the companies and amounts, determine the number of shares you can buy for each based on current stock prices, ensuring you purchase whole shares only. Calculate the total investment for each company accordingly.

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In constructing a diversified portfolio of US stocks with a total investment of $25,000, I have selected three leading companies: Alphabet Inc., Amazon, and Apple. My choices are driven by their strong market performance, growth prospects, and personal familiarity. I aim to practice industry diversification by spreading investments across technology, e-commerce, and digital services sectors.

Firstly, I opted to invest the largest portion in Alphabet Inc., allocating $12,000. Alphabet's revenue of over $90 billion as of 2016 reflects its dominant position in digital advertising and technology innovation. Its diversified business model, including Google Search, YouTube, and cloud computing services, supports long-term growth potential. As a frequent user of Google services, I believe investing in Alphabet aligns with my personal usage patterns, and its market resilience makes it an attractive investment choice.

Secondly, I allocated $7,000 to Amazon. Amazon has revolutionized online shopping and continues to expand into new markets like cloud computing with AWS, groceries via Whole Foods, and logistics. Its exponential growth and dominant e-commerce market share make it a compelling investment. Additionally, Amazon's rapid international growth and innovative ventures suggest a promising future, motivating my decision to invest in this company.

Thirdly, I invested $6,000 in Apple. As an avid user of Apple products, I have a personal connection with the brand. Apple is recognized as the largest information technology company by revenue and has a robust ecosystem of devices and services. Its consistent innovation, brand loyalty, and substantial cash reserves present a strong investment case. Its diversified product line, including iPhones, MacBooks, and services like Apple Music and iCloud, supports steady revenue streams.

Next, I calculated the number of shares for each company based on current stock prices. For Alphabet Inc., trading at approximately $45 per share, I can buy:

  • Alphabet Inc.: $12,000 / $45 ≈ 266.67. I decide to purchase 266 shares, which costs 266 x $45 = $11,970, leaving a residual of $30.

For Amazon, with shares priced at roughly $102 per share, I can purchase:

  • Amazon: $7,000 / $102 ≈ 68.63. I opt to buy 68 shares, totaling 68 x $102 = $6,936, with $64 remaining.

Finally, for Apple, priced around $150 per share, I determine:

  • Apple: $6,000 / $150 = 40 shares, costing exactly $6,000 with no residual cash.

In summary, my investment portfolio includes 266 shares of Alphabet Inc., 68 shares of Amazon, and 40 shares of Apple. The total investments approximate $11,970 + $6,936 + $6,000 = $24,906, leaving a small cash balance of about $94. This allocation allows targeted exposure to high-performing sectors while maintaining diversification across technology giants.

This approach reflects a balanced mix of industry leaders, aiming to optimize potential returns, reduce risk through diversification, and align with personal usage and market outlooks. The selected companies are well-positioned to capitalize on ongoing technological advancements and global economic growth, making this portfolio a strategic choice for an investor seeking exposure to the US tech sector.

References

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