Business discourse

Essay by kamisCollege, UndergraduateA, January 2005

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Throughout my college career I will be involved in the business discipline. I knew for almost my whole life that I wanted to participate in business. That is dream and my major also. To make it comes true, I do many researches and read a lot of newspapers, and I found one magazine about business that is very good for me as well as for people who want to do business and also for our community.

Reader's Digest is a very common magazine many people read now a day. On their March 2004 issue, Marc Myers wrote Safe Bets, an excellent topic on investing money into the market. As a business major, I found this topic very interesting. Myer wrote an article about the Montheis who loss 70% of their investment during the crash on 2000. Based on the Montheis' failures, Myer introduced a better way to invest money for future needs.

The topic that kept show up again and again is how to diversify the portfolio to reduce risk and pick the right advisor.

To start the discussion, Myer introduced the Motheis' situations. They are a married couple with one child. The Motheis is very concerned about their retirement money, and so they set up a portfolio for their funds. During the crash in 2000, the Motheis loss 70% of what they have been invested in. They drew out two conclusions: first, they did not pick a very good advisor for their portfolio; and second, their choices of stocks were not very good. After introducing the Motheis, Myer lead direct into advising his audience with their investment. He preferred buying more short-term CD's (certificate of deposits) over long-term CD's to reduce inflation risk. He also recommended invest your stocks in different industries and companies. His reason...