Importance of investment research
This assignment is aimed at helping you understand the importance of investment research. At every financial institution, money managers are consistently tasked with finding valuable investments that will have sustainable growth. Your task will be to place yourself in the shoes of one of these institutional researchers, and select a stock you think is a good investment.
Select one company of your choosing in your favorite industry (ie: Apple, Tech Industry).
Then, explain the reasoning of your choice, and why you are passionate about the company (ie: Mission, Values, Purpose).
Give a summary of the company from creation to current day.
Then use the year 2021 as guidance as to how the company performed in the stock market. Be sure to include the ticker symbol (ie: AAPL).
Look at the company’s actions throughout that time period and give your reasoning as to why you believe the company performed well or poorly. Be sure to consider product releases and important events.
Then look into the company’s financials. You can use CNBC, Bloomberg, Google Finance, among others to find this information. Look at revenues briefly, and interpret which other indicators you think would be useful for an institutional researcher.
To conclude, compare how your company’s stock performance to its industry. Did they outperform? Then, look at the stock exchange’s overall performance compared to cryptocurrency. Was the Equity Asset Class more attractive in 2021? Or was it the Crypto Asset Class?
The goal of this exercise is to allow you to begin reflecting on what are important drivers of investment selection and performance. There are multiple factors that provide significant insights on whether or not an investment is a good choice. You should approach this assignment as a learning exercise, there is no right or wrong answer. Use rational thought and logical reasoning in your explanations. The assignment is expected to be well structured, coherent, and not greater than 1000 words.
