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Stock Market Project Essay

581 words - 3 pages

Why Did We Buy The Stocks We Selected?Being a fan of the music industry, our group decided to roll the die with one of the heavier music producers. We decided to choose Apple because of the recent success and popularity we have seen in the iPod as well as the new G5. We simply thought that the recent success of these two items would propel the stock in a positive direction. We chose HOT because we thought that the holiday season would bring in many travelers. Hotels would naturally have better business as more people travel across the world. Having ties to Sheraton and many other major luxury hotels we figured that HOT may have a chance to raise ...view middle of the document...

93%. The small gain may have been influenced by the increased demand for hotels during the Christmas season. As we know for both cases an increase of demand at the same supply level equals higher level of price.How Right Or Wrong Were We?We were relatively right in our predictions. AAPL was definitely rising due to the iPod because of the holiday season. HOT did not increase as much as we would have liked because the loss of the US dollar for international travel as well as its high price could have influenced the small gain. We managed to gain a total of 6.3% in AAPL and HOT made a gain of 2.93%. This translates to a total gain of $1230 in Apple and a gain of $492 in Starwood Hotels.What Would We Do Different Next Time?Next time we would buy a stock which would be more popular to the American people. We would probably have chosen Microsoft because of the Launch of Halo 2, but we decided to take a gamble with HOT. We did make money but not as much as we would like. We thought that the hotel industry would have good aspirations, but due to the loss of the American dollar, it hit the industry hard. Not as hard to make it a loss in profits but enough to make buyers not to be interested in HOT. Overall, we would research all of the forces that drive the industry before we invest in a company. Next time we would also try to be more aggressive in our picks because we could have made a lot more money if we bought more shares. I think next time we will believe in our picks and put a more aggressive approach to it.

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