Personal Financial Analysis Paper

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Hilary Butsch November 22, 2010 Personal Investing During the pre-investment process I completed a couple tests that calculate my risk tolerance and my investor profile. After analyzing the information, I determine that I could put about 40 per cent of my investments into stocks and the remaining 60 per cent into bonds and money markets. The purpose of investing in bonds is to ensure a growth of your money. Bonds are much safer than stocks. In stocks you buy partial ownership of the company so depending on their success your money will either increase or decrease; whereas, bonds you are loaning your money to companies and when the bond matures you get your money back--all the while collecting interest on your loaned money. I'm not looking…show more content…
According to yahoo finance, the industry leader in P/E is Banco De Oro Unibank, Incorporated with a 0.00. Overall, Citigroup is a strong company that could be included as one of the top companies in the industry. Their rankings are generally in the top quarter percent. Exxon Mobil Corp. Market Capitalization: 355.70B Trailing P/E/: 12.49 Forward P/E: 11.07 PEG Ratio: 1.00 Profit Margin: 8.27% Total Cash: 12.26B Short Ratio: 1.40 Dividend Payout Ratio: 30.00% How does this compare? Exxon Mobil Corp is in the top 6 in all of the top major integrated oil and gas companies by Market Cap. with 353.94B. However, in terms of P/E Exxon is found in the middle of the pack, ranking 25/46. Overall, Exxon Mobil Corp. ranks in the top 25% of Integrated Oil and Gas Companies. The most notable statistic is Exxon's return on equity which ranks #1 in the industry with 21.61% Nike Inc. Market Capitalization: 41.01B Trailing P/E/: 21.67 Forward P/E: 17.41 PEG Ratio: 1.80 Profit Margin: 10.07% Total Cash: 4.69B Short Ratio: 2.30 Dividend Payout Ratio: 27.00% How do these…show more content…
A discount bond is a bond that is issued for less than its par (or face) value, or a bond currently trading for less than its par value in the secondary market and is backed by consumer paper. For example, say you buy the bond at a discounted 35% of 100 dollars, therefore, the bond costs you 65 dollars. Your margin of safety is 35%. Two things can happen. One, the bond performs and you make 35% more. Second, you can lose money because the paper doesn't perform to the full term. It is a riskier choice than par or premium because you’re banking on the fact that the company does well. However, the upside is much better. In my opinion, I believe the risk can be worth it because you can make a lot of money this way. Also, if you do proper investigation of the company you will have further insight that can lead you to making a good choice. I wouldn’t buy any premium bonds. They’re expensive and the payout isn’t worth it. The only upside is that it is very secure but I’m more interested in making

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