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See A Winning STATE Level High School Essay from Spring 2015!

Spring 2015 InvestWrite Grades 9 - 12                  STATE WINNER


In his article “3 Investing Resolutions You Should Make in 2015,” analyst Brian Stoffel suggests investors “don't sell in 2015.” He explains, “Emotions can get us to do crazy things–and that's especially true for those that are saying to themselves: Sure, but that's not me.”

He also writes, “When I started investing, I always wrote down–in the simplest way possible–exactly why I was buying shares of a company, and what it would take to get me to sell shares.”

Essay Question:

Select two distinctly different stocks, bonds, and/or mutual funds from your Stock Market Game portfolio or choose two distinctly different stocks, bonds or mutual funds you believe would be good investments. For example, the stock or bond of a food industry company like McDonalds is distinctly different from a stock or bond of a technology industry company like Cisco. A mutual fund like the Fidelity Select Consumer Staples Portfolio (FDFAX), which holds companies like Coca Cola, General Mills, and Kroger, is distinctly different from a mutual fund like the Fidelity Select Air Transportation Portfolio (FSAIX), which holds companies like Boeing, Delta Airlines, and UPS.

First, explain why you believe the industries your selected stocks, bonds, or mutual funds represent are good industries in which to invest. Next, share why you would invest in the stocks, bonds, or mutual funds you selected and what would make you sell each of those investments (just like Brian Stoffel says he did).

Do you believe your selected stocks, bonds, or mutual funds will perform well in 2015? Why or why not? Finally, explain why you agree or disagree with Brian Stoffel’s advice not sell in 2015.

Winning Student: Victoria Freeze
Winning Teacher: Rain Vincent
Grade: 9th
Place: Barbers Hill High School, Mont Belvieu, TX

Victoria's Winning Essay:

Stocks. They tend to have mood swings. One moment they are sitting back while taking a sip of tea the next moment they are inflicting havoc resembling the devastation of a tornado. Even though stocks may be slightly bipolar, they still possess the potential to bring great success to the future.

As you may know, there are many well-experienced stock investors in the world, but there are also many everyday people who tend to browse the web in search of the perfect stock investment. For these individuals there are many stocks that tend to catch the eye. Two of these industries that these stocks emerge from are the technology industry and the restaurant industry. Google (GOOG) from the technology industry and Texas Roadhouse (TXRH) from the restaurant industry tend to be two attention-grabbing investments.

One of the world’s most popularly used browsers, Google, has continued to dominate the technology industry. In a recent study, the author, Tom Taulli, states that “Revenues continue to grow at a nice pace, up about 19% to $15.4 billion in the latest quarter. Cash flow also remains solid, coming to $4.39 billion in Q1. In all, the company has $59.38 billion in the bank.” These statistics convince potential investors, like myself, that Google is a good stock to invest in because they seem highly financially stable with the possibility to distribute bonus dividends to all of its other investors in the future. Even though Google is often able to convince individuals to invest in their company due to their financial stability, is also a common limiting factor. Personally, if the profit earned by Google tends to have a large decrease in a short period of time or a continuous decrease over an extended period of time, it would be then that I would sell rather than potentially risk even more money. However, as of now their future definitely looks promising. Because of Google’s beneficial past, I believe Google will undoubtedly perform well in the 2015 stock market.

Similarly, steakhouse restaurant chain, Texas Roadhouse, has been on the road to success since it was first founded on February 17, 1993 and is currently continuing its streak to success. According to a recent study, Texas Roadhouse is the top ranking equity-earning restaurant of 2015 and has the highest possible rating of an A+. Individuals such as me see this success of rank and rating as promising signs for a good investment. If I were to purchase stock in Texas Roadhouse, I would require a significant drop in equity as well as a lower rating in order to consider selling my shares of Texas Roadhouse stocks. Overall, I believe that Texas Roadhouse stocks have a promising future in the 2015 stock market due to their continuously rising success rate and they’re rank as best restaurant to invest in throughout the entire American restaurant industry.

Recently, Brian Stoffel, advises investors to “try not to sell a single share of stocks they own next year.” I would have to agree with Mr. Stoffel due to the promising outlook of the 2015 stock market investments like Google and Texas Roadhouse. In agreement, I would advise investors to buy stock; however do not sell their stocks or other investments during the year of 2015. Warren Buffett once said “I never try to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” Like Warren Buffet we should plan to invest in the long run, not just for a quick sprint down one of the four infamous lengths of a race track.

In conclusion, the year of 2015 has a favorable outlook when referring to the stock market. With such promising investment opportunities such as Google from the technology industry and Texas Roadhouse from the restaurant industry, individuals should plan to buy while prices are low and ride out the rest of the year and see the opportunity of future benefit. Investors. Think of yourself as a long distance runner. Don’t sprint! We’re in it for the long run.

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