Posted: September 13th, 2017

Individual Share Portfolio

Individual Share Portfolio
The vast majority of the world’s largest companies are “publicly listed” companies (in the UK called PLCs). That means that, through one of the stock exchanges such as London, New York or Shanghai, investors can invest easily in those businesses.

In this task you will each have £10,000 to invest in a publicly listed company of your choice. You will monitor the performance of your investment and those of your group members over several months. It is only a fictional £10,000 unfortunately but will the value of your investment increase or will you lose money?

At the end of this project you should be able to:-

• Better understand an organisation’s published financial results;
• Construct charts and diagrams and clearly interpret them;
• Use published share price data and articles from the business pages of newspapers to evaluate the performance of a portfolio of shares;
• Present your analysis effectively in writing.

You will work with your Phase 1 group on your shares even after your groups have changed in later phases.

Learning Objectives

This project will help you:

• To recognise the concept of the business organisation operating within the parameters of a changing external environment
• To demonstrate an awareness of current issues, facts and events in the national and international business world
• To identify different legal forms of company
• To interpret data presented in various forms
• To write an academic essay with appropriate referencing
• To manage your time to meet deadlines and obligations including those to other members of your group

The Task
You have a nominal £10,000 with which to buy shares of a company that MUST be listed on the London Stock Exchange. Try to invest in a company that you think will do well over the next six months and give you a good return on your investment, even though making a profit is not a key objective of this assessment.

You need to be able to justify your choice of company. In order to do this you should carry out some research on a range of companies using PEST analysis. You will need this information for your interim report.

As a group you will put your shares together as a portfolio and you must then keep a joint record of the current price of your shares and the total current value of your portfolio using an Excel spreadsheet to monitor the performance of your group’s portfolio of shares. You should record the share prices and create charts to show the values graphically, (experiment with the sorts of chart that you can produce to find the best one for this task).

Every week you will be expected to check on the performance of your individual shares, adding your information to the group’s spreadsheet. In Phase 2 you will also have an opportunity to sell your share and use the proceeds to invest in a different company. You have to decide whether that will give you better growth over the period of your investment.

The assessment is concerned with how you arrived at your choice of initial shares, your analysis of the progress of your portfolio, your judgement for keeping – or selling – the shares and how well you justify your decisions. In order to do this, you should try to include more pieces of information than just the closing share price to make a chart as informative as possible. What other information might be relevant? You will also need this information for your interim and final reports.
What are we looking for?

Interim Individual Share Portfolio Review – maximum 1,000 words

To pass this assessment you MUST:
Submit an interim report that analyses the performance of your chosen share throughout the first twelve weeks of the project, paying particular attention to changes in the share price and including a PEST analysis for your chosen company

T o achieve a higher grade in this assessment you SHOULD:
Analyse your share performance in detail, with referenced evidence to support your analysis
Provide information on why you chose this particular company
Compare the performance of your chosen share with the overall performance of the shares chosen in your group
If you are going to chose to swap your original share, why you are you choosing to swap and your justifications for your new choice.

To achieve a grade at the highest level you COULD:
Provide information on other companies that you considered, and why you rejected them
Consider how well your share is doing compared to the overall portfolio of your group and the stock market as a whole
Provide detailed justifications around your decision during the share trading window

Hint: to achieve higher marks you will analyse the reasons for what happened, comparing your company with other relevant businesses, the sector and the economy in general, and taking into account any newsworthy events that affected the share price.
Final Individual Share Portfolio Review – maximum 1,500 words

To pass this assessment you MUST:
Submit a final report that analyses the performance of your chosen share(s) throughout the 20 weeks of the project, paying particular attention to changes in the share price.

T o achieve a higher grade in this assessment you SHOULD:
Analyse your share performance in detail, with referenced evidence to support your analysis
Compare the performance of your chosen share(s) with the overall performance of the shares chosen in your group
If you chose to swap your original share, why you chose to swap, and your justifications for your new choice

To achieve a grade at the highest level you COULD:
Compare the performance of your chosen share(s) with the performance of the overall stock market – did your share(s) out-perform the stock market? If yes, why? If not, why not?

Hint: to achieve higher marks you will analyse the reasons for what happened, comparing your company with other relevant businesses, the sector and the economy in general, and taking into account any newsworthy events that affected the share price.

 
Help and Support
You had a lecture on Financial Markets in Phase 1 Week 2. The lecture slides are also available in the Learning Block for Phase 1 Week 2. You will also find various links to information about the Financial Markets in this Learning Block. Remember that news about your company and others in the same sector is very relevant to the performance of the shares. Do you read the business news of a good newspaper or website? Could you set up an RSS feed for news on your businesses? Have you located investor information on the website of your chosen company?
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