Wednesday, November 16, 2011

My first transaction this week was investing in Aflac. It is in the financial sector and is a health and life insurance company. I thought this would be good to invest in because insurance is important to have and most people buy it, I'm also trying to make sure I invest in companies from several different sectors. i bought 20 shares for $44.41 each which falls pretty much in the middle of the $31.25 - $59.54 52 week range. There is also a 3% dividend. I chose Aflac over it's competitors American Fidelity Life Assurance and Nippon Life Insurance for a few reasons. First because I felt like Aflac is very well know and used. Secondly, there wasn't a lot of information about other companies and from the information that was there i could tell aflac had a lot higher profit margin even though they had fewer employees. I predict Aflac will go up about $2 dollars in the next couple weeks.

The second transaction this week was buying Costco. I bought this as a trade because I think their sales will go up a  lot during the week of thanksgiving. Costco is in the consumer goods sector. I only had about $1800 left so i only bought 20 shares for $81.43 each which falls pretty high on the $66.27 - $86.34 52 week range but i think it will be very profitable with Thanksgiving coming anyways. However, i do wish i would have purchased this a little earlier if the price was lower. Costco does have a 1.2% dividend as well. Their main competitors are Target and Walmart, I chose Costco over target because they don't sell the food that Costco does. I chose it over Walmart because I feel that around the holidays people tend to buy in  large quantities which is what Costco sells at a pretty good price, plus they have a better quarterly growth by aboout 8%. I predict that Costco will go up about $4 before I sell it after Thanksgiving.

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