blog · business · current · Global · Portfolio · Stock Exchange · Stocks · Uncategorized · Wall Street

Portfolio, The Warren Buffett Way

 

buffett3

Amidst the United Kingdom exiting the EU and DOW Jones dropping each day after the Brexit; there is still a silver lining in all this stock exchange mess. There has been a history of raising with big percentages the year after. To add to Brexit, during Presidential election years, the market tends to drop then rise again. I look to see stock soar next year no matter who the president is. Right now seems to be an excellent time to buy stock and expand your portfolio. It is a good time to buy after a market plummet. If you decide to invest in some stocks soon, here is my top 5 stock choices.

Businessman holding a transparent screen with an inscription a t
Businessman holding a transparent screen with an inscription a top five. Business, technology, internet and networking concept.

The top five portfolio of common stocks I will put together whose stock is traded on the New York Stock Exchange will be on Warren Buffet’s top 10 list of dividends paid in 2016. According to The Street, each of Buffett’s top 10 “comprises at least 0.8% of his public equity portfolio and has a dividend yield of 2.5% or higher” (The Street, Page 2).

buffett

I think it is smart to at least take a look at Warren Buffett’s portfolio and the decisions the multi-billionaire is making. My first decision will be to add General Motors (GM) which pays $0.38 per share quarterly yielding 5.27% and a Beta of 1.73 providing great returns as of late. My second stock to add to my portfolio will be IBM (IBM) which pays out $1.40 per share and yielding 3.8%. The Beta for IBM is 0.71 revealing low risk and providing solidity and safety to my portfolio, but also decent dividends paid. My third stock to add to my portfolio will be Phillips 66 (PSX) which has recently increased their dividends to $0.63 and is yielding 3.2%. I honestly did not know anything about Phillips 66 until I found out that Warren Buffett has been purchasing hundreds of millions worth of stock with them. Phillips 66 is an energy manufacturing and logistics company with a Beta of 1.49 which is mostly betting on the four segments of midstream, chemicals, refining, and marketing and specialties.

buffett2

My fourth stock will be Wells Fargo (WFC) which is a company with a long history of paying dividends. Wells Fargo lowered their dividends to five cents during the 2008 market crash, but has since increased it to $0.38 yielding 3.25% dividends. This stock is Warren Buffett’s second largest stock holding in his portfolio revealing some trust in this stock with a Beta of 0.94. My fifth stock I will be investing in will be Coca-Cola (KO) my favorite beverage to drink; as Warren Buffett says about Coca-Cola “I’m the kind of guy who likes to bet on sure things, no business has ever failed with happy customers – and you’re selling happiness” (The Street, Page 6). The Beta for Coca-Cola is 0.53 and paying dividends of $0.35 yielding 3.11%. Coca-Cola has paid quarterly dividends since 1920 and has increased dividends every year for the last 50 years. Warren Buffett owns over 400 million shares of Coca-Cola compiling 14.4% of his public equity portfolio.

portfollio

My Portfolio                           Beta                Dividends Per-Share          Current Ticket

 

General Motors (GM)           1.73                $0.38 Quarterly                     $ 29.02

IBM (IBM)                               0.71                $1.40 Quarterly                     $151.06

Phillips 66 (PSX)                 1.49                $0.63 Quarterly                     $ 79.43

Wells Fargo (WFC)              0.94                $0.38 Quarterly                     $ 46.85

Coca-Cola (KO)                    0.53                $0.35 Quarterly                     $ 45.31

 

My portfolio will have some solid ground to stand on with decent dividends paid per quarter. My portfolio also has a couple high risk high reward stocks which seem to show a promising return in the near future. My portfolio reflects Warren Buffett who is the billionaire known as “The Oracle of Omaha.” Many people follow his footsteps when it comes to investing.

wall street

In my portfolio each company will have a portfolio weight of 20%.

 

General Motors (GM) has a 0.346 beta weight in my portfolio.

IBM (IBM) has a 0.142 beta weight in my portfolio.

Phillips 66 (PSX) has a 0.298 weight in my portfolio.

Wells Fargo (WFC) has a 0.188 weight in my portfolio.

Coca-Cola (KO) has a 0.106 weight in my portfolio.

 

My overall Beta for my portfolio would be 1.08 revealling a relatively safe portfolio with some possible nice returns.

 

Emily Stewart. (2016, May 17). The Street. Investing. In Warren Buffett’s Top 10 Dividend-Paying Stocks for 2016. Retrieved from https://www.thestreet.com/story/12825278/2/warren-buffetts-top-10-dividend-stocks.html

 

Forbes. (2016, June 14). Forbes. The Richest Person In Every State. In The Little Black Book of Billionaire Secrets. Retrieved from http://www.forbes.com/profile/warren-buffett/

 

CNN Money. (2016). Markets. In Market Quote. Retrieved from http://money.cnn.com/quote/quote.html?symb=KO

Advertisements
blog · business · current · Furture Implications · Global · Investing · Job Costing · Marketing · Uncategorized

Corporate Outsourcing

outsourcing
Outsourcing

Outsourcing helps emerging economies by providing more jobs for their country. A large corporation may decide to outsource their manufacturing in order to save hundreds of thousands of dollars and sometimes millions. The value of the currency is what will make the largest impact on a corporation. It would cost one tenth of the normal labor wages to manufacture in a country such as India versus manufacturing in the United States. The wages the corporation will be paying the local people in India will be equivalent to what the US workers would have made but cost a lot less to do it. Many people in the United States frown on corporations that outsource. I personally do not see it as a negative; however the loss of jobs from the corporation leaving the country could cause some issues. This is where corporate outsourcing may or may not help them develop country it is leaving.

'We Want Our Jobs Back'
‘We Want Our Jobs Back’

At first glance it seems the corporation is costing the developed country or let’s says the United States, thousands of jobs. Americans will begin thinking that these thousands of people are now left without a job but then the corporation hires thousands of non-Americans. I can see how this can be bad PR in the United States. There are a lot statistics and research’s that support outsourcing for the developed country. Many say that the re-movement of the corporation will open up doors for the employees left behind. In fact the majority of jobs in the United States is created by small businesses and the outsourcing will provide a much lower price of products to sell which also combats national inflation. Patrick Dixon form Global Change stated that “research shows some of the new economic activity generated in developing countries by outsourcing will generate new demand for goods and services in the country where the jobs have moved from the developed countries. It has been estimated that every dollar that US corporations spend on outsourcing to India gets $0.33 cents and the US economy benefits by $1.14.”

What are your thoughts on Outsourcing?

OutsourcingTheNumberStory

 

 

Patrick Dixon. (2014). Global Change. Future Trends. In The Future of Outsourcing – Impact On Jobs – Keynote Speaker. Retrieved from http://www.globalchange.com/outsourcing.htm

blog · business · current · education · Furture Implications · Global · Uncategorized

One World Government

world pulled apart

The Gold Standard was doing so well before changes were made after the second world war. This is an interesting subject about world currencies and how global GDP was on an all-time high during the gold standard system. I have done some reading on the Freemasonry, supposedly they have plans of a one world government. This would probably bring in one global currency as well. To add to this controversial conspiracy, the Bible talks about a one world currency during the end times. when I look at the history of the global currencies, it makes sense to go back to a one world currency like the Gold Standard. History shows that the Gold Standard held very high global GDP numbers and globalization and growth percentages were on an all-time high. I know talking about freemasonry and the Bible is a little off subject, but I thought it kind of made sense to talk about it since it related to one government and one currency. The fact remains, the gold standard is still the most perfect system ever created. Looking into the business world and globalization, in which I am studying for my International MBA with focus of Social Media Marketing, the fact that history shows a very strong global economy with the single world currency.

world army

If the world economy were to collapse, the entire world would feel it. The strongest currencies in the world in order by rank, the US Dollar, the Euro, the Japanese Yen, the British Pound, and the Swiss Franc would cause some serious global issues. I know many people talk about the US dollar weakening, however, the USD is still the number one currency in the world and the United States of America is still the world’s largest economy. There are many countries who trade in US dollars because their own currency has loss too much value and was hurting their country. The dollarization countries use the USD as their home currency. Other countries such as Japan use the US dollar as a reserve to their currency. For example, if their currency depreciates too much, they would use USD to control their depreciation. Of course every country uses this strategy including the United States; however the USD and EUR are the worlds consistent currency.

gold coins

In my previous post I wrote about the gold standard which was the world’s greatest monetary system ever created.

“The gold standard monetary global system was the most prolific system ever created. From 1870-1914 the gold standard showed large GDP numbers around the world. Practically every country was showing growth in numbers not comparable today. In fact the comparison is not even in the same ball park. During this time, actual gold coins were being used for sell and trade. Most of the countries in the world had the same currency “gold” and would have no problem investing in other countries. GDP high numbers were a norm back then with percentages as high as 6-9% with various countries seeing even higher. Let’s look at China’s GDP before their recent crash; they were at a steady 7% and 9%. This was looked at by the world as amazing and un-speakable growth. Well before World War I, these numbers were the norm for every country. The gold standard is recognized as the most perfect system ever created. “

world together

It would make sense in the global business world to bring the global economy on a high growth level such as it was back in 1870-1914 before World War I. Almost every country in the world were seeing growth as the likes of China in recent years. Back then it was normal to see such growth, today it is almost un-real to see such growth. In fact, many people questioned the GDP numbers China was posting for various reasons we will not go into. However, China still had tremendous growth.

WORLD-MAP-2

Back to my point, history tells a story that one world currency is a very good thing. A one world currency would need to have a one world government or what others would say “One World Order” for the global economy to grow as it did in the past. If the conspiracy theories were true of the Freemasonry, building a one world order controlled by high level people, then the world could agree to their high growth global economic system. This one world order is also foretold in the Bible in great detail. The one currency, one world government would be controlled by the top 10 world leaders. Probably selected by the top 10 countries in the world.

world one

The top 10 Kingdoms, Countries, Nations, Empires, Territories, or Provinces with an 11th also involved. The one in charge would be like a Prime Minister or President of the one world government who would administer peace through power. During this time of global economic stabilization, technology would make it really easy for people to purchase everyday items such as milk, bread, and water through a digital devise. Since the entire world would be using this technology, it would be understandable to need a secure way to determine identification and to keep personal bank information locked down. The Bible foretells this technology would be accessible through some implant, marking, or something embedded in either the right hand or the forehead.

mark of the beast

The Bible refers the world leader as a beast and “He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.” Revelation 13:16-17

worldface

This new world order or one world government would create safety under one global currency. According to USAHitman (I have no idea who he is) quoted Pope Benedict XVI stated “construction of a world community, with a corresponding authority,” proposing global peace and justice. This quote may not be true, but the Pope’s idea of a world government is to bring politicians together for judgment and practical guidelines. History shows this global government would stimulate tremendous growth and a prosperous future. However, this Biblical warning is pretty severe. If you have any belief at all in the Bible, this future will be the start of a gruesome end to the world. Read the Bible and understand what the warning is, one of which is to avoid this economic marking/implant that is embedded in the either the right hand or the forehead which is called “the mark of the beast.” As you can imagine, this scenario will create an uprising of millions of people not wanting to take the economical marking (mark of the beast).

Mark-Of-The-Beast

However you look at the one world government, the economic impact of one world currency would make a huge impact across the world. Education is self-enlightenment and a growth of awareness which can only better prepare you for the future; I implore you to self-enlighten and read the Bible, which is considered a proven history book with countless successful military tactics, business strategies and economic prosperity.

 

References

MBA Knowledge Base. (2016). International Business. In An Eclectic Arrangement, 1973-Present. Retrieved from http://www.mbaknol.com/international-business/an-eclectic-currency-arrangement-1973-present/

Nathan Lewis. (2013, January 3). Forbes. Economics & Finance. Retrieved from http://www.forbes.com/sites/nathanlewis/2013/01/03/the-1870-1914-gold-standard-the-most-perfect-one-ever-created/#1334bcea50d8

USA Hitman. (2012, December 12). NWO. In Evil Vatican calls for a new one world government. Retrieved from https://usahitman.com/evcowg/

Richard Lee. (2015, November 14). Investopedia. Articles. In Top 8 Most Tradable Currencies. Retrieved from http://www.investopedia.com/articles/forex/08/top-8-currencies-to-know.asp

Thomas. (2012). Eleven Two Fund Management. In Does The Bible Actually Mention A One World Currency and Government? Retrieved from http://www.eleventwofm.com/does-the-bible-actually-mention-a-one-world-currency-and-government/

 

blog · business · current · Investing · Uncategorized

The Gold Standard & Today

gold coin Czechoslovakia_1934_10_Ducats.jpg

The gold standard monetary global system was the most prolific system ever created. From 1870-1914 the gold standard showed large GDP numbers around the world. Practically every country was showing growth in numbers not comparable today. In fact the comparison is not even in the same ball park. During this time, actual gold coins were being used for sell and trade. Most of the countries in the world had the same currency “gold” and would have no problem investing in other countries. GDP high numbers were a norm back then with percentages as high as 6-9% with various countries seeing even higher. Let’s look at China’s GDP before their recent crash; they were at a steady 7% and 9%. This was looked at by the world as amazing and un-speakable growth. Well before World War I, these numbers were the norm for every country. The gold standard is recognized as the most perfect system ever created.

gold coins

The Bretton Woods monetary system was created after World War II and to address the economic difficulties some countries were partaking in. This system was to establish commercial and financial relations among countries in 1945. I wasn’t until 1971 when the United States terminated the convertibility of the USD to gold which is known as the “Nixon shock” and ended the Bretton Woods system. the USD was considered a flat currency while states began reserving the US dollar. This began a process of free-floating currencies, the US dollar and the Britain pound began the Floating Rate System where the market forces are what determine the exchange rate between two currencies. The floating system naturally adjusts and is isolated from shocks created from other countries. This gives government’s economic independence without the effects of external economic performances.

gold bars

MBA Knowledge Base. (2016). International Business. In An Eclectic Arrangement, 1973-Present. Retrieved from http://www.mbaknol.com/international-business/an-eclectic-currency-arrangement-1973-present/

 

Nathan Lewis. (2013, January 3). Forbes. Economics & Finance. Retrieved from http://www.forbes.com/sites/nathanlewis/2013/01/03/the-1870-1914-gold-standard-the-most-perfect-one-ever-created/#1334bcea50d8

blog · business · current · Furture Implications · Investing · Viral Campaign

China Has Seen Better Days

As we all know, China has seen better days. The stocks in China have fallen so hard that it is said to be the “weakest economic growth in a quarter century.” The yuan has continued to depreciate while the world is wondering if they will be dragging the entire world down with them. The economic exposure is so severe, people have worried about the end of days or the end of the world. For those reading these words who live in the United States of America, China’s collapse will not put us in a worse economic position. The United States is a $15 trillion dollar economy; that is $15 trillion coming in and $15 trillion going out. The business Unites States has with China is only $150 billion, not to say it’s not a lot of money, but $150 billion dollars is only 1% of our economic prowess.

china

The economic exposure has set Hang Seng China Enterprises Index on a trading level that puts a lot of pressure on future options mostly held by large banks like Bank of America and Merrill Lynch. It is possible the investors will begin to lose their principal if the levels of stock continue to fall. The stocks are predicted to fall even faster very soon. The large banks will respond to this economic risk and sell their futures to reduce their hedge. William Chan, the head of Asia Pacific equity derivatives research said “as the market goes lower from here, the downward move may accelerate. There will be a large amount of hedging in futures which dealers need to unwind.” The economic exposure could be seeing more economic crashing in the near future for China. We can only hope China will listen to the market and use their prideful communistic pressure against the market.

china stocks

Regina Tan. (2016, January 19). Bloomberg Business. News. In China Stock Rout Seen Getting Uglier as Derivative Trigger Looms. Retrieved from http://www.bloomberg.com/news/articles/2016-01-20/bofa-sees-tipping-point-in-hong-kong-stocks-as-futures-unwind

blog · blog with a side of klout · current · current stand on social media · education · klout · social media

Blog with a side of Klout

I took a social media course in college which help to start my blog. Before this course I had knowledge of social media, but blogs scared me. I was afraid to get involved with blogging because I didn’t understand it fully. I have grown a lot in this course and I recomend this caurse to everyone I know! I have created a blog account which I am very happy about. I will be continuing my blog and develop more of an audience. I have seen only positives about the blog activities. We were allowed to blog about our industry which makes it truly exciting. Not only is it exciting, but we are blogging about social media in our industry. There are not a lot of people blogging about social media. Because of the social media theme of the blog, I have had 4 different countries read my blog; from of course the USA, then Mexico, Russian Federation, and Saudi Arabia. It is exciting knowing people from other countries are viewing my blog. This entices me to continue blogging. I can’t wait to continue blogging. I plan creating another blog about video games. It is a hobby of mine. I have played video games for the most part of my life. I still want to continue my blogging on social media. It seems important for people involved with social media to continue engaging with other social media guru’s. I am also interested in creating my own url with wordpress. I believe it will be daniellonen.com.

klout-score-graphic-e1355785069810-980x450 (1)

My Klout score has grown to over 56. I started at 49 and just a couple days ago I reached my 90 day high of 60. During the course of this class my Klout score has had a huge increase. I am starting to utilize my Klout scheduling; I know this will improve my Klout score too. My score increased due to the knowledge I gained in this class. I am truly happy about taking this course and will continue my education probably for the rest of my life. I will leave you with one question, what is your Klout score?

current · current stand on social media · social media

The Social Sphere

For the most part of today’s social media networks, Facebook, Twitter, LinkedIn, and Google+ continue to be the top forces in the industry. The network with the most population is Facebook and if it were a country, it would be the third most popular country in the world behind China and India. Twitter, LinkedIn, and Google+ make the top ten also. Google+ is slowly building and gaining ground. They are making very smart decisions as they continue building the platform. It seems as though Google+ has the best of all worlds (networks) and is making the right moves as they grow. The things helping Google+ is that Google is the number one search engine, and owns the number two search results in YouTube. Google holds the power of being found on the internet, so having an account with Google+ will help anybody be found. A new attribute for Google+ is the fact that you can now make a business page that can be managed through your personal account.

Social media is so predominate now that the word “selfie” is currently in the Webster’s dictionary. The definition is: an image of oneself taken by oneself using a digital camera especially for posting on social networks. It is considered a noun.

If I haven’t spoken enough about Google+, then here is a little more. Google+ is similar to a Facebook account where you post information with or without a photo. Your post can then be searchable through Google’s search engine. The search engine optimization (SEO) using Google+ will easily be made since the content is coming from the number one search engine in the world. Google+ allows you to create events that can show up like a post. They also have “Hangouts” with is a video conferencing attribute for your business or private group. The commenting, sharing and tagging all helps others be aware of certain content.

The coolest part about Google+ is you can make a post and decide who is allowed to see it. They have “circles” which is a way to choose who will be in a specific social circle without the individual knowing what circle you put them in. For example I may make a post that is somewhat confidential and only want my family to view it. I will make the post and share it simply to my family circle. This “circle” option gives the power of content to the individual who is posting; something other social networks do not have.

I predict Google+ to dominate the social realm. So what are you waiting for? Create an account and add me to one of your circles! I am a friendly guy who enjoys spheres. In the meantime, enjoy the quick social media video posted above.

Brianna Smith. (2014, May 13). Social Media Today. In #Socialnomics 2014: Current State of Social Media. Retrieved from http://www.socialmediatoday.com/content/socialnomics-2014-current-state-social-media-video

Steve Rayson. (2014, May 15). Social Media Today. In 6 Lessons from the Most Popular Content Marketing Articles. Retrieved from http://www.socialmediatoday.com/content/6-lessons-most-popular-content-marketing-articles

Rebecca Wardlow. (2014). Rebecca Wardlow Social Solutions. In The benefits of Google+. Retrieved from http://www.rebeccawardlow.com/what-can-you-do-in-google/