Stock Track Report

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Finance 363 Stocktrak Final Report
Group 10
Cody Norton, Nick Turner, Shane Siel The stocktrak simulation was very informative. It was interesting to watch the markets with something on the line. My group was in the top 3 much of the semester. Right around the end of the simulation we fell out of the top 3 and finished in the 10th position. We could have tried to change our investment strategy in order to chase the top spot, but in the end we stayed true to our objective.
Objective and Strategy
Our objective is one that most would consider boring. I would describe myself as a long-term investor. When I actually begin to invest real money in the stock market, I will invest in sound companies that pay a decent dividend. Although the stocktrak simulation took place over a relatively short period of time, we still invested with a long-term horizon in mind. That long-term horizon will produce smaller short-term gains. Our portfolio was constructed with a buy and hold mentality. We tried to avoid being swayed by our emotions and the short-term fads of investors. It was hard to avoid investing in accordance with the predictions of the markets gurus, but in the end I believe our investments were safer because of it. The buy and hold mentality allows us to overlook negative short-term returns with the understanding that the returns will normalize in the long-term.
We spread our cash out among a variety of investment vehicles. We planned on placing our funds in 15-30 different investments. The diversity of investments allowed us to eliminate some of the idiosyncratic risk of the individual firms. The specific weights we placed on investment types were: 50% in equity, 30% in mutual funds, 5% in ADR’s, 5% in bonds, and the final 10% will be designates as speculation money.
We diversified, not only by investment type, but also by industry. We put…...

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