White Sapphire Investment Corp.
White Sapphire Investment CorpInvest in your future.Amia Ross, Alex Dortzbach, and Shaan Patel
Investment StrategyStrategyWe want to achieve our goal by investing mainly in stocks, but alsoinvesting in real estate, bonds, and cash investments. We are diversifyingby investing in numerous stocks and bonds to reduce risk of oneinvestment in particular failing. We will invest in some up-and-comingneighborhoods, but also established resort cities. Always keeping somemoney in cash investments will ensure that the money keeps pace withination. Overall, we want this to provide a 100% return over the ten yearperiod. However, we will take 5% of all prots made.
GoalsOur goal as an investment group is to assist in creating the beginnings ofretirement savings for someone who has already started out in life butstill has 15-20 years left before they do retire.
Startup InformationOur startup minimum is $25,000, and the required amount of money foreach additional year is $2,500. If someone pulls their money out in therst ve years, the penalty is 25% of what they already put in. However, ifthey choose to pull out their money after the rst ve years, the penaltyis only 5%. We want our plan to be exible with the amount of timeclients wish to invest their money, but we do recommend that clientskeep their money in our corporation for the full 10 years for maximumreturn, as the plan is designed for a 10 year period.
Investment Types:Our investment strategy mainly deals with these four types ofInvestments:
1. Stocks- 45%2. Bonds- 15%3. Real Estate- 25%4. Cash Investments- 15%
StocksWe invest in stocks that are rmly planted in their industry, sell popularproducts, and are on the rise. All stocks have relatively low betas (under1.25), have low-medium P/E ratios, and have a dividend & yield of at least2%, with the exception of a minimal number of stocks. Our stocks arediverse; we usually do not invest in two stocks belonging to the sameindustry. Our main stock investment strategy is to use dollar costaveraging, at regular intervals of every year.
Here are the stocks we invest in:
Exxon (XOM) Oil and gas stocks are steadily rising As of March 2014, Exxon-Mobil was the third largest oil and
gas company in the world Revenue of $420 billion Has a .89 beta, low-medium risk Div & Yield of 2.70%, nice return
Coca-Cola Company (KO) Leading beverage company in the world Creating new, healthier drinks that we
predict will be successful Has a .34 beta, very low risk Div & Yield of 2.90%, nice return Last revenue was larger than predicted
Target (TGT)67 High quality, cheap retail store 6000 customers every day Revenue of $72.6 billion Has a .81 beta, low-medium risk Div & Yield of 3.60%, sizeable return
Apple (AAPL) High quality technology store Quarterly revenue of $45.6 billion Has sold 47.8 million iPhones and 22.9 million iPads Popular company Has a .74 beta, low-medium risk Div & Yield is 2.10%, medium return
The Hershey Company (HSY) Revenue of $1.871 million Leading North American chocolate manufacturer
Quality chocolate, non-chocolate candies, and chocolaterelated grocery goods
Also leads in the gum and mintsection
Has a .14 beta, very low risk Div & Yield of 1.90%, a little low, but we think the company is
successful and a good investment Vanguard Wellesley Fund (VWINX)
Mutual fund, good way to diversify stockportfolio
Div & Yield of 2.97%, nice prot Cheap stock price ($26.02)
General Mills (GIS) Among the worlds largest food companies Sells cereal (Cheerios, Golden Grahams, etc.), Yoplait, Nature
Valley bars, Pillsbury dough, Wanchai Ferry dumplings, GreenGiant vegetables, Haagen-Daaz icecream
Revenue of $17.91 billion Has a .24 beta, very low risk Div & Yield is 3.00%, sizeable return
Dunkin Donuts (DNKN) Largest coee retailer in America Sell 1.7 billion cups of coee per year Revenue is $656.77 million Has a .52 beta, low-medium risk Div & Yield is 2.10%, medium return
Wal-Mart (WMT) Large, cheap retail store More than 245 million customers per week Revenue is $473.1 billion Has a .37 beta, low risk Div & Yield is 2.50%, nice return
American Eagle Outtters (AEO) Popular clothing store for teenagers Revenue is $3.3 billion Has a .77 beta, low-medium risk Div & Yield is 4.30%, relatively large return
All of the stocks listed above are long-standing, popular companies thatcontinue to grow and prosper. They each contribute something to societythat everyone seem to like, such as stylish clothing, soda, ice cream,candy, gas, technology, and almost everything in between. Each one isrelatively low risk and has an average to high amount of return. Wepredict that they will continue on their steady growth path.
Bonds and Bond Funds:Colorado Bondshares Tax-Exempt (HICOX)
Investment grade- A+Risk Grade- A-
Blackrock Secured Credit Inv A (BMSAX)Investment Grade- A+
Risk Grade- B+Five-Year Treasury Constant Maturity
Investment Grade- AAARIsk Grade- AAA
PowerShares S&P 500 High Dividend Portfolio (SPHD)Investment Grade- A+Risk Grade- A
SPDR Nuveen Barclays Build America Bond (BABS)Investment Grade- ARisk Grade- B+
All of the bonds we plan to invest in have high returns with very little risk.All with an investment grade of no lower than A- and a risk grade of B+and above, we believed that these were the safest stocks that producereturns in a 5-10 year period. The interest rates keep up with the currentination rate of 1.5% (US Ination Calculator) so the value of the moneywill not decrease over time.
Real Estate:For our real estate, we will be investing in up- and- coming Real Estate.Rental properties are our main focus as they are more aordable andshow good signs of health in growing. Additionally, the rental rates inmajor cities are going up. All of this means a good amount of prot. Wewill be putting 25% into Real Estate. All of the Real Estate haveattractions such as sports teams, theme parks, casinos, etc.
Property Rental Investments:Here is the list of the main places that buying a property rental wouldhave good potential: Las Vegas, NevadaOrlando, FloridaMemphis, TennesseeJacksonville, FloridaPhoenix, Arizona
Why These Will Be Good Investments:Las Vegas-Vacancy Rate: 8.6%Average Rent per Month: $803According to realtytrac, a foreclosure company, one in every 89 houses inLas Vegas are up for foreclosure. The average house goes for $128,000,which is way less than $220,000 (the price they were selling for two yearsbefore). The intrinsic value of these homes are higher than what they areselling for, and it would be a great time to buy before a turnaroundhappens. The main attractions in Las Vegas are its casinos, which can bringin tenants. Las Vegas also has some top rated public high schools such asthe Advanced Technologies Academy, which is 10 out of 10 star. For
middle schools they have Sig Rogich Middle School, which is 10 out of 10stars. Las Vegas also has several job opportunities, in elds such asnance, business, construction, etc.
Orlando-Vacancy Rate: 7.9%Average Rent per Month: $871Orlando, like Las Vegas, has the average price of a house selling for$120,000 which is way less than the value of the houses a year ago whichwas $200,000. There is also the attractions of theme parks such asUniversal Studios, Wet and WIld, and Disney World. Some schools inorlando for high schoolers is Jones high school, which is rated 4 out of 5stars. A highly rated middle school is Lake Eola middle school, which is 9out of 10 stars. As for jobs Orlando does have a good amount of jobs inhealthcare, government, and insurance.
Memphis-Vacancy Rate: 11.2%Average Rent per Month: $682
Memphis, like almost all places on this list, has the average price of ahouse selling for $86,500. The intrinsic value of these homes are are waymore than how much they are selling for now, it is a good time to buy.There are sports teams, such as the NBA Grizzlies, that can attracttenants. One of the top rated high schools in Memphis is BT WashingtonHigh school, rated 8 out of 10 stars. Memphis also has several jobopenings in Management, Sales, and Customer Service.
Phoenix-Vacancy Rate: 8.9%Average Rent per Month: $755Phoenix is a growing market with houses going for $128,000 down from$198,000 last year. In Phoenix they have capital city state jobs, collegetown job security thanks to Arizona State University, and a militarypresence at Lukes air force base. For sports team they have the PhoenixSuns NBA team. Some schools in phoenix for middle and high schoolersis the Academy of Math and science Phoenix, it is rated 5 out of 5 stars.Jobs can also be found in Phoenix, there are jobs here in humanresources, customer service, and teaching.
Vacancy Rate: 10.2%Average Rent per Month: $800The cost per house is $127,000, lower than 2 years ago average of$174,000. Unemployment rate went from 11.2%(in 2008) to 5.9% thisyear, the economy is stabilizing. The Jacksonville Jaguars is a professionalNFL team for entertainment. One of the biggest sporting events, theSuper Bowl is held here often. a middle and high school, St. John Blu isone of the top rated schools in Jacksonville, it is rated 5 out of 5 stars.Jacksonville also oers some jobs as well, the openings are in insurance,car sales, and nance.
CashOur cash investments are in 5 year CDs, 2 year CDs, and MMAs. We aimfor interest rates that are higher than the current ination rate (which is1.5%). We are also interested in reliable sources and paying as little extrafees as possible. These accounts are mainly for rebalancing purposes oremergency investments (such as an unusually good stock opportunity).Here are the liquid assets we use and a short description.
5 year CD GE Capital Bank 4 star rating, reliable 2.23% return, slightly above ination rate
Compounded daily, higher end return 2 year CD
GE Capital Bank 4 star rating, reliable 1.19% return Compounded daily, higher end return
MMA Ally Bank 4 star rating, reliable .85% return Compounded daily, higher end return Check writing allowed, higher liquidity No opening fees, less money No monthly fees, less money
White Sapphire Investment Corp. is focused on helping you startyour adult life and prepare a retirement fund through low to medium riskinvestments in stocks, bonds, cash, and real estate. We invest insuccessful and growing stocks, up-and-coming neighborhoods, andreliable U.S. bonds. We plan to achieve 100% return after 10 years. Wehope you choose White Sapphire Investment Corp. to invest in yourfuture.