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Essay sample - How has the fund fared?
Pages 3 (753 words)
How has the funds performed Annualized funds return Berkshire Hathaway (NYSE) Microsoft (NASDAQ) General Electric (NYSE) Original share value 147,113.09USD 27.93USD 22.62USD Share value 150,247.79 USD 27.74 USD 23.28 USD Return 3134.7 -0.19 0.66 %+1 1.021 0.993 1.029 [1.021*0.993*1.029]*12= 12.52-1=11.52 The annualized return = 11.52% What dividends were received?…
Furthermore, a company cannot be able to pay dividends if it is not making profits. Supposing a company is going through financial difficulties, such as high cost and declining sales that lead to losses, it becomes very difficult to afford funds to pay dividends to its shareholders. In such a situation, the company is forced to cut the dividends paid to its shareholders in order to conserve cash so the company can continue existing. It is for this reason that we shall assume that the dividends paid by the three companies will depend on their returns. Therefore, as shown in the table above, Berkshire Hathaway (NYSE) will be able to pay the highest level of dividends followed by General Electric (NYSE) and finally Microsoft (NASDAQ). Considering dividends payout as the factor determining the performance of the fund, Berkshire Hathaway (NYSE) will be the most attractive whilst Microsoft (NASDAQ) will be the least attractive. What where your biggest mistakes and successes? To evaluate how well or bad our fund has performed, it is important to reflect on different ways that are used in measuring stock performance. What is more important in doing this depends on the current type of investment and the exact information that we are seeking. ...
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