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

Portfolio, The Warren Buffett Way

 

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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.

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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

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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/

 

business · Coffee · Global · Marketing

The Strategy of Starbucks

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Starbucks is a company with world renown and was first established in 1971. In the last ten years Starbucks has tripled in annual revenue and earned $16.5 billion dollars in 2014 with a total of 21,366 stores. Starbucks is the second most valuable fast food brand in the world, second to McDonalds. What differentiates the company from its competitors is focus of speed and quality. Starbucks tries to get the customer their order in 3 minutes and 3-5 minutes when it’s busy. The equipment selected in each Starbucks store is at one of the highest quality pieces of equipment in the industry. Starbucks claims to have 87,000 different drink combinations and the barista can make each and every one of them. These specific steps translate to their brand and product value. Each store has high quality equipment and each store has a barista that can pour a perfect cappuccino and latte with the right amount of foam on top. The baristas are taken care of since Starbucks offers health insurance to their employees who work 20 hours a week or more costing $250 million dollars in 2009. This makes the baristas happy and enjoyable to speak to in the stores.

 starbucks

The product in each global store relates to the target market because each cup of coffee ordered can be very unique to the customer. The 87,000 different drink combinations helps Starbucks fit in each market. Some stores in various countries change the look of their logo a bit to fit the culture and beliefs of the country. Most logos show wavy hair while in Saudi Arabia, the lady on the logo is covered up. Some countries (not the USA) show the full picture of the lady who is holding her legs (fins) in the air like a naked mermaid with two fins which seems to be a turn off in America. The Starbucks logo changes depending on where they are in the world. Starbucks is continually growing each year and looking to expand their global presence.

 starbucks4

Jacques, Francois M. (2007, May). Harvard Business Review. Volume 85, Issue 5. In Even Commodities Have Customers. Retrieved from http://web.b.ebscohost.com.ezproxy.snhu.edu/ehost/detail/detail?sid=a88cf095-0954-48bf-a909-2e0c688f6457%40sessionmgr198&vid=3&hid=110&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsY3BpZCZjdXN0aWQ9c2hhcGlybyZzaXRlPWVob3N0LWxpdmU%3d#db=bth&AN=24638248

Aimee Groth and Gus Lubin. (2011, July 29). Business Insider. Strategy. In 11 Things Starbucks Does Better Than Almost Any Competitor. Retrieved from http://www.businessinsider.com/starbucks-does-better-2011-7?op=1

Statista. (2015). The Statistic Portal. Prices & Access. In Statistics and facts on Starbucks. Retrieved from http://www.statista.com/topics/1246/starbucks/

Alissa Walker. (2011, January 10). A Magazine For the Global Citizen. Design. In New Starbucks Logo Too Racy for Some Countries. Retrieved from http://magazine.good.is/articles/new-starbucks-logo-too-racy-for-some-countries