Statement

Currently, I am a devoted college student who is anxiously waiting for graduation to start of my investment journey. As a result, I have two different intricate decisions that I will need to undertake to ensure that I make my investment tenure a successful venture in the long-run. My supportive parents have expressed their willingness to allocate me a considerable amount of money for my entrepreneurial and investment advancement. They have mutually agreed that the period following my graduation will be effective for initiating my investment journey to become self reliant. Nonetheless, I have a strong passion in following in the footsteps of my parents. Upon reaching my old age, ranging from 50 years and above, I would like to partner with my spouse in order to have an IRA's that we shall make massive investment towards in order to meet our future financial goals. 

In addition, I will encourage my spouse to ensure that we undertake a 401 K as well as a pension plan with her employer in order to actively save to facilitate the process of achieving our long-term goals such as meeting the expenditures that come with retirement. At such a time, however, it will be critical to assume a predetermined moderate risk with our financial investments in order to ensure that we successfully evade all the risks associated with business that may fail in the long-run. Nonetheless, I have a detailed focus on being more cautious in my investment venture in order to undertake calculative risks while avoiding those that will ruin my business. With the financial support from my parents and my limited knowledge in investment, I hope that I will learn more about investing in assets such as stocks, index funds, currencies, and how the overall market operates so that I can learn to invest wisely and profitably.

Time Horizon

I plan to work for twenty years at most then I will retire. I will purchase a country home and re-invest in the remaining amount. The contract will end in twenty years to reduce the risk of the venture.

Stocks

Walmart Inc (WMT)

Summary

Walmart is a United States based retail firm that runs a wide range of businesses including groceries, departmental stores that offer customers massive discounts, alongside a chain of hypermarkets. The infamous retail firm bears its headquarters in Bentonville, Arkansas. Walmart started its business operations in 1962 upon being founded by Sam Walton. However, the organization was formally incorporated in 1969 and runs over 11, 718 stores across the world. Walmart also claims ownership of numerous clubs in approaximately 28 countries, including Japan, Canada and the United Kingdom.

Facts about Walmart 

The retail company had approaximately 11,389 stores as well as clubs as of July 2019

These businesses are evenly spread in approximately 27 countries across the world and are run under 55 distinct names. 

Walmart ranks as the world's leading organization with approximately US$514.405 billion in terms of revenue. 

Also ranked as the leading retailer of groceries in 2018 (Krishna, 2019).

Three Reasons to Purchase Stock

For the six months ended 31 July 2019, Walmart Inc revenues increased 1 percent to $254.3 billion. Net income before extraordinary items increased from $1.25 billion to $7.45 billion (VDAX, n.d.).

Walmart inc earnings released 15 August 2019 was $130 billion

Walmart is a multinational company with retailers and clubs all around the world.

Three Reasons Not to Purchase Stocks

The retail firm invests in foreign markets which yield mixed outcomes in terms of profits and revenues. For instance, Walmart's investment plans succeeded in key markets such as UK and South America but failed in South Korea as well as Germany. 

Walmart suffers from multiple criticisms as well as lawsuits resulting from different groups including its employees. For instance, employees went on strike in 2012 to protest against the company's discriminative policies (Divine, 2019). Which in return affected the companies workability and income ratio

In July 2019, pro-union memes flooded the Walmart subreddit following the decision of an employee to post confidential information on the subreddit platform.

The Bottom Line

Walmart may not be new to controversy, but it is still a very viable stock to invest. It is a multi-national corporation with retail stores all over the world with an annual turnover of around $130 billion. Moreover, it has diversified its portfolio through clubs and warehouses.

Bank of America Corporation (BAC)

Summary

BAC operates as a multinational firm that bears its headquarters in   Charlotte in the state of North Carolina. It's ranked as one of the beneficiaries of the state. It is also operates as the second largest banking firm.  It accounts for more than 10.73% of the deposits received across the country's banking transactions (VDAX, n.d.). This bank's financial services include commercial banking as well as management of customers' wealth. 

Bank of America Corporation Facts

As of 2019, BAC ranked as one of the best investment firms in the contemporary world of business. 

The company's leadership is responsible for taking care of approximately US$1.081 trillion in terms of assets. 

In addition, the bank's asset rates it as the second asset management firm in the contemporary world of business. 

BAC works in all 50 states of America but lacks retail destinations in some predetermined regions. 

Three Reasons to Purchase Stock

For the six months ended 30 June 2018, Bank of America Corporation interest income increased 14 percent to $36.39 billion.

Operating as the sixth public firm in the U.S, BAC had a cumulative sum of $102.98 billion in terms of annual sales in 2018. 

Bank of America corporations has a wide range of clients across the United States as it operates in all 50 states plus more than 40 other countries.

Three Reasons not to Purchase Stock

BAC's significant market share alongside its business operations has attracted different lawsuits, which in turn tarnish its corporate image and reputation. 

BAC was accused by a court in Italy for taking part in a scum alongside having inadequate mechanisms to prevent fraud in April 2011 (VDAX, n.d.). 

Also found liable for seizing stolen property as a result of wrong addresses displayed on their official documents.   

The Bottom Line

Bank of America Corporation stock has had slight hiccups here and there, but the stock seems to rebound rather quickly and then continues to rise again. The bank might face competition from other banks but it is a force to reckon with. I would recommend purchasing the stock but, would probably wait for the inevitable market dip, to maximize my profits.

Vanguard Dividend Appreciation Index Fund Investor Shares

Summary:

The VDAIX shares are appropriate for people looking after sustainable investments. Such investors tend to be tolerant to high risks. This fund has created annual revenue of 8.72% since its introduction. Some of its compatible index entails the company's rising interests. VDAIX aims at portraying the overall price while yielding the inherent performance of associated index by making massive investment of its critical assets in the global common stocks.  

Facts about Vanguard Dividend Appreciation Index Fund Investor Shares 

VDAIX required a total of $3000 as the lowest value of investment as of May 2019. It also charged a total of 0.15% as it's a yearly expense ratio. 

This index fund has approximately 182 stocks alongside $70.1 billion as its average market capitalization value.  

VDAIX also takes the responsibility of compensating customers' high risks with a one month yield of approaximately 1.88%.  

Three Reasons to Purchase the Index Fund

VDAIX attracted a total of 8.72% as its medium yearly returns since its launch. 

VDAIX attains a total of 20.2% return on customers' equity and with its growth rate standing at 3.1%. 

This fund charges approaximately the lowest annual expense ratio of about 0.15% which transforms into about 84% lower when compared to the medium mutual fund that has the same amount of holdings. 

Three Reasons Not to Purchase Index Fund

The investor has no control over holdings in the index fund. Since indexes are a set of portfolios, when a person purchases an index fund, they lack any form of control over stokes lying in their portfolio. There could also be stocks that different customers may be willing to cling to but, they do not have the power to add them to the index fund (Pinsent, 2019; Kennon, 2019). The only option you would have to own them would in the direction of buying the stocks separately from the index fund, which can often be cost-prohibitive depending on the stock.

The historical performance of the fund has been unpredictable this year with rises and consequently a few dips which may discourage an investor.

Interest rates are on the rise. Traditionally, when interest rates rise, the real estate market suffers. When investing in REITs, there is a strong probability that an increase in interest rates will affect index funds. REITs interest rates are expected to rise this year following their recent hiking in 2018 after experiencing decrease in 2017 as illustrated in the graph below;  

(Retrieved from: https://www.reit.com/data-research/research/nareit-research/reit-outlook-2019-top-issues-watch-real-estate-and-reits-2019)

The Bottom Line

The VDAIX shares have shown continuous earnings growth in its inception. The year may have caused hurdles but, I believe buying in a dip may be profitable for an investor of the fund.

The Real Numbers:

STOCKS

Walmart Inc (WMT)

I invested $5000 in Walmart stock. When I purchased my stock on January 2, 2019, the cost per share was $98.59. I was able to purchase 50 shares. On June 30, 2019, the stock closed at $92.13. Based on these, numbers I had a Capital Loss of -$6.46 per share (Kennon, 2018). The Total Capital Loss for 50 shares was -$323. The Total Dividends paid per share was $2.08 (0.52 + 0.52 + 0.52 + 0.52). The Total Annual Dividends paid for 50 shares was $104. The Total Return for the year was -$219 or -0.0438%.

Capital Loss per Share: $92.13 - $98.59 = -$6.46

Total Capital Loss: -$6.46 x 50 shares = -$323

Total Dividend Income per Share = 0.52 + 0 .52 + 0.52 + 0.52 = $2.08

Total Annual Dividend Income: $2.08 x 50 shares = $104

Total Dollar Gain: -$323 + $104 = -$219

Total % Gain: -$219/5000 = -0.0438%

Bank of America Corporation (BAC)

I invested $5000 in Bank of America Corporation stock. When I purchased my stock on January 2, 2019, the cost per share was $29.90. people were  able to purchase 167 shares. On June 30, 2019, the stock closed at $24.39. Based on these numbers I had a Capital Loss of -$5.51 per share. The Total Capital Loss for 167 shares was -$920.17. The Total Dividends paid per share was $0.54 (0.15 + 0.15 + 0.12 + 0.12). The Total Annual Dividends paid for 167 shares was $90.18. The Total Return for the year was -$829.99 or -0.166%.

Capital Loss per Share: $24.39 - $29.90 = -$5.51

Total Capital Loss: -$5.51 x 167 shares = -$920.17

Total Dividend Income per Share = 0.15 + 0 .15 + 0.12 + 0.12 = $0.54

Total Annual Dividend Income: $0.54 x 167 shares = $90.18

Total Dollar Loss: -$920.17 + $90.18 = -$829.99

Total % Loss: -$829.99/5000 = -0.166%

Vanguard Dividend Appreciation Fund Investor Shares 

With an investment portfolio of 5000$ inVDAIX shares, I made the decision to purchase my index on January 2, 2019, the cost per share was $40.96. I was able to purchase 122 shares. On June 30, 2019, the index closed at $38.78. Based on these numbers I had a Capital Loss of -$2.18 per share. The Total Capital Loss for 122 shares was -$265.96. The Total Dividends paid per share was $0.783 (0.223 + 0.19 + 0.218 + 0.152). The Total Annual Dividends paid for 122 shares was $95.526 (Riquier, 2019).  The Total Return for the year was -$170.434 or -0.034%.

Capital Loss per Share: $38.78 - $40.96 = -$2.18

Total Capital Loss: -$2.18 x 122 shares = -$265.96

Total Dividend Income per Share = 0.223 + 0 .19 + 0.218 + 0.152 = $0.783

Total Annual Dividend Income: $0.783 x 122 shares = $95.526

Total Dollar Loss: -$265.96 + $95.526 = -$170.434

Total % Loss: -$170.434/5000 = -0.034%

Conclusion

For the period January 2, 2019 to June 30, 2019, my stocks, Walmart Inc and Bank of America Corporation together with my index fund, Vanguard Dividend Appreciation Index Fund Investors Shares did not do very well. Walmart had a total return of  -$219 and a total % loss of -0.0438%.Bank of America Corporation had a total return of -$829.99 and a total % loss of -0.166%.Vanguard Dividend Appreciation Index Fund Investor Share had a total return of -$170.434 and a total % loss of -0.034%. WMT and BAC plus VDAIX index were volatile and fluctuated wildly the whole year. Overall I incurred losses in my investments with a total annual return of -$1219.424 (-$219 + -$829.99 + -$170.434) and total % return of 0.0813%.This brings the conclusion of bank of America as the stock with the widest swing in the market price hence this there is a greater possibility of more customers branching to bank of America corporation in comparison to the other two based on the cumulative adverntages.it was ranked the best with more volatile investments as well as stock exchange.In comparison to the other two it's advisable to customers to invest in BAC.