Fall 2015 InvestWrite Grades 4 - 5 National Winning Essay
TO THINK ABOUT:
You probably think about a lot of different things on your way to school. Maybe you think about hanging out with your friends or what you will do after school. For a fun change, think about the stock market! Look around and notice things that exist because someone made an investment in them. Maybe you’ll see a McDonald’s or a Starbucks or your town’s City Hall or a hospital. People invested in all of these things! How about the street you’re walking or riding on or your school building? Yes, these were built using investments.
Select a stock or bond or mutual fund to write about. It could be one in your Stock Market Game portfolio or one that just interests you. Discuss how you think this investment could benefit your community, or other communities, or even other places in the world. If it is included in your Stock Market Game portfolio explain why you selected it. And if you did not include it in your portfolio, discuss why you did not. Determine if you think it is a good investment for individuals to make for the long term. Why or why not?
Winning Student: MoMo Farmer
Winning Teacher: Yvonne Strange
Place: Chapin Intermediate School, Chapin, SC
MoMo’s Winning Essay:
Our Journey With Amazon
Imagine you are on the school bus on your way to school, and what do you see? Businesses, grocery stores, and schools are places that are invested in. Where I live in Chapin, on my way to school, I see Publix, Walmart and banks, like TD Bank. All of these places are largely possible because of stock investments. What do you think about when you hear “Amazon”? I think about ordering and shopping on computers. Amazon is invested in too. Amazon is a great stock because it has made big returns for investors, and they donate to charity. This gives this stock a very good reputation, along with being a good investment.
When investing in a stock, there are many things you need to look for. You need to look at the stock’s history, to see if it’s climbing or falling. Also, look at the predictions to see if the experts think this stock will rise or drop in the future. As our group started to look around Nasdaq to buy our very first stock, we all started searching name brands we knew. We searched a lot of things like Nike, Under Armor, Publix and more. We finally found a perfect stock that we predicted would really gain. We purchased Amazon at the price of $521.62 on October 1, 2015. Now on November 23, 2015, you can buy Amazon for about $663. This rise in price happened in about one month. We all agreed on purchasing this stock because of the history. We noticed in February 2015, the total price was around $350. When we bought the stock in October, the price was around $540. We thought that we would purchase Amazon because of its past increases and analysts’ expectations. In addition, Amazon’s donating to charity, made us feel good about the company’s mission and reputation, helping people in need as well running a successful company.
Purchasing a stock can be hard for anyone; however, I would definitely recommend Amazon as a stock to purchase. Today, analysts project Amazon’s 2016 profit to rise by 447.60% and for the stock price to hit $723. I think this may be a little high, but still think this will be a very good stock to invest in. When we were deciding to purchase Amazon, we wanted to look at the recommendations. Twenty-one out of twenty-eight said strong buy. Two out of twenty-eight said buy and five out of twenty-eight said hold. We noticed that many people had said strong buy so this convinced us to purchase the stock. Then, we looked at the P/E Ratio predictions for 2015 (363) and 2016 (135) and decided this stock could really rise. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.
If a company is successful, there are many ways it can benefit its community. Amazon benefits our community in three different ways: charity, reputation and employment. When you become a member of Amazon, every time you purchase an item, .5% of the money goes to charities like American Red Cross, ASPCA and World Wide Fund. Giving money to charities also gives Amazon a good reputation. Consumers want to make purchases from companies that give back to others. Employment benefits local communities, including the Midlands of South Carolina, where Amazon employs over 1,500 people at its Lexington distribution center. Worldwide, Amazon employs over 154,000 people. These are important jobs that help build good communities.
In conclusion, Amazon is an excellent stock to invest in. It is a very successful company and a big contributor for our community. Amazon's earnings growth is high, and has helped our group’s numbers rise. Amazon stock has increased from around $522.00 to $664.00 in just one month. They benefit our community by giving back and donating to charities, and these acts gives them a good reputation. They also provide jobs for our community. By playing the stock market game, I have learned that investing in companies that you are familiar with and understand can be both profitable and fun at the same time.