Diana+Dollars

=Cover Sheet= Diana Dollars CSD_41_ZZ515 Diana Cluff

=Spreadsheet= media type="googlespreadsheet" key="pL2N8FZjW5iLWEF5X1B-pew" width="500" height="300" =Investing Strategy= 1) My investor profile was Social Skeptic. I chose this strategy because for most people, bad habits are tough to break. I assumed that even in an economic downturn, the level of difficulty would discourage people who smoke and drink from reducing or ending their usage. 2) I invested in companies that have well known products. With Altria Group Inc. and Philip Morris International having famous brands such as Malboro and Virginia Slims, I believed their popularity made them immune to the current global trend of recession. I thought the same to be true with Diageo, having world-renowned brands such as Captain Morgan, Smirnoff, and Baileys.

=Company Information= 1) Altria 2) MO, NYSE 3) Henrico County, Virginia 4) Altria is the parent company of Philip Morris USA, John Middleton, and Philip Morris Capital Corporation, the first two being tobacco companies and the last being offering financial services for a variety of industries. 5) With Philip Morris USA being the largest tobacco company in the US and John Middleton being one of the largest cigar manufacturers, I believed that their well-established reputations would make them strong during tough economic times.

1) Diageo 2) DEO, NYSE 3) London, England, UK 4) Sell alcoholic beverages in beers, spirits, and wines. 5) Since the company has some of the most known alcoholic beverages, I thought their stock would do well because of the oncoming holidays that are cause for large celebrations which usually include alcohol

1) Philip Morris International 2) PM, NYSE 3) New York, New York 4) The company owns seven of the top fifteen tobacco brands. 5) Since the company sells its products in approxametily 160 countries, I believed that their large consumer base would support them during an economic recession.

=Current Events and My Investments= 1) **UST Shareholders Approve Acquisition By Altria** In taking over a company that provides a substitute to their own products, Altria is going through a sort of horizontal merger, eliminating one of their competitors while allowing them to expand and diversify their business by taking on smokeless tobacco and premium wines. For consumers this can be a good sign because expansion means that the company will most likely bring in higher profits, and higher profits means higher dividends for shareholders. Higher dividends and profits could in turn cause a rise in the price of the company's stock, since more investors would want to put their money into a company that is strong. 2) ** Diageo in collaboration talks with United Spirits ** As described by the article, Diageo is trying to get into a market that is virtually untapped by western companies due to the extremely high tariffs imposed by the Indian government. Knowing that Indian consumers greatly value brands from the UK and US, Diageo can estimate what high demand their alcohol products will see if they enter the country's market, especially if they have no other western competitors. Though the company was at the beginning stages of arranging a collaboration with United Spirits, the news could have elevated investors' hopes for Diageo, and the thought of such high profits could have driven many to buy stock before their prices rose due to the company's entrance into an exclusive market.

=Final Thoughts, Reflection, Feedback=

1) The strategy I chose, using the social skeptic profile, didn't prove very fruitful for me in my investments, as I had losses in all three of my stocks at the end of the game. I overestimated the strength my stocks would have as the global markets dove deeper into a recession, and didn't that the slow economy would change the way people spent money on tobacco and alcohol. Since the companies I chose were big names within their industries, I also thought that other investors would trust the stability of a well-known name, as I had done. Yet investors chose to either invest in other industries or to completely alienate the stock market systems completely. If I were to play the stock market game once again I would definitely chose a different strategy. I would probably choose stocks that I was more familiar with and that provide cheap products/services, since consumers are continuously trying to save during a weakening economy. Companies such as Wal-Mart and McDonald's would be were I would invest my money because many more buyers shop and eat at these places than smoke or drink. 2) Though I tracked my stocks as the game progressed, I didn't sell or buy additional stock as I probably should have in order to elevate my ranking. Since I knew that the global economy was in a recession, I believed that many might seek comfort heavily in bad habits like smoking or drinking. I also believed that since many might pull their spending back on gifts during the holiday season, that they might indulge a bit more in alcohol, giving higher profits to companies that provide the beverages, and, in turn, increasing the stock price. 3) Throughout this project I learned about how many different choices investors have when picking where to place their money and because of these choices I learned about the different approaches many take when investing. Since there are so many options, I also learned the importance of researching before buying any stock. I thought the game and project to be well explained and easy to handle, with the extra credit points giving motivation to put effort into the assignment.