5 Component Theory of Stock & Fund Analysis

Financial analysts across the globe spend hours researching securities and have formulas for calculating risk and return. I have been investing in the US Stock market since 2015 and have been developed a 5 component theory for analyzing individual stocks and funds. This theory takes into consideration the most important factors of stock performance and risk. It is a quite simple theory and when put in to practice will yield the returns you deserve. The fund strategy is all based on risk mitigation and capital appreciation.

This data tells me whether or not a security passes the risk tolerance test. So far my investment portfolio is up over 12% for my Roth IRA and 6.50% for my individual investment account. I plan to increase my risk tolerance levels to maximize growth during my 30 year investment career. My investment strategy consists of holding passively managed and open-ended index funds along with carefully analyzed growth stocks, with a small percentage allocated toward fixed income in the form of long-term treasury bond index funds. I have a mix of small cap, mid cap, and large cap index funds along with the S&P 500 to create a “Total Market Index Fund” and capture the total US stock market growth.

The 5 component theory was created in 2019 and has been the driving force behind the “Main Fund” which is my individual investment account via the Fidelity Investments platform. A security must pass a certain level of criteria before executing a buy and booking a place in the main fund. Below are the five components:

  1. Historical Performance
  2. Dividend Yield
  3. Beta
  4. 52-Week Range
  5. Intuition

Best,

Michael Moran

Financial Markets Update: 11/17/2020 – Back to Reality For the US Markets

Financial markets dipped on Tuesday morning as COVID cases surge across the United States. Positive vaccine progression news has fueled financial markets in the US over the short term and the benchmark indexes have hit record highs in recent days. Today the dow is currently down -300 points and below is the NASDAQ and S&P 500:

Red days are healthy for financial markets and your portfolio. The indexes rise year after year and retire millions and millions of people each year. The long-term is where real return happens. Overall more investors are more positive about entering the market and we are seeing the real possibility of a vaccination. The October Jobs Report can be found in my earlier post on politics.

Michael’s Highlighted Returns Week of 11/16:

FXAIX – The Fidelity 500 Index Fund: 9.75%

ADP – Automatic Data Processing: 20.07%

*FXAIX is a fund, ADP is an individual stock

Michael’s TOP Performers:

AES

AFL

BRKB

FB

WMT

Best,

Michael

Political Update: Biden President-Elect Drives Crypto + Trump’s Economic Recovery

Fastest economic recovery in American history! 📈

More testing than any other country and quick to shut down the border..

Remember, the cure can be worse than the cause..

I’m all for masks, social distancing, and limited capacity 😷

However, we can’t shut down this great country again like before..

Democratic leaders, I’m curious, what does this COVID-19 task force look like (assuming results hold)? With cases spiking, Are we going back into lockdown again?

Remember to keep comments respectful, I’m genuinely interested. Here’s the link for the October jobs report:

https://www.bls.gov/news.release/pdf/empsit.pdf?fbclid=IwAR2dRFJd5nnMW7LOD7igl6hnff8fjIf0ek2Zn-ykM5OpFf-SgqZHkfu30uM

President Trump will finish his term strong until the results become official. If results hold, I’m gutted, however thrilled to see one of the world’s greatest and most iconic businessman expand more units in Florida. Here is a picture of me visiting his stomping grounds back in 2017!

Cryptocurrency is hitting record highs, people are terrified! The US dollar is being compromised.

Biden has announced a Covid-19 task force and calls for America to “unite and heal”.

Here’s What I Think Will Happen Under Biden:

Lower GDP from higher corporate taxes and more taxes on the wealthy will cause a decline in the free market. Tariff reversals and trade policy deregulation will lead to the United States being taken advantage of like in 2008-2016. Socialist principles and the Green New Deal. The Green New Deal will cost trillions of dollars and take ages to get pushed through congress.

Best,

Michael

Michael’s Portfolio & Investment Strategy

Michael is a modern day consultant and investor with investments in the US Stock Market, US Government, and cash reserves. Michael’s Individual Brokerage Account is with Fidelity Investments. Michael runs a Facebook group called ‘Fidelity Platform Investors’ where like-minded Fidelity investors gather to share and exchange ideas on investing in financial markets.

Portfolio Breakdown

Individual Brokerage Account:

FSMAX – Fidelity Extended Market Index Fund – 7.96%

FXAIX – Fidelity 500 Index Fund – 50.31%

FSSNX – Fidelity Small Cap Index Fund – 7.78%

SPAX (Core Holding) – Fidelity Government Money Market – .01%

FNBGX – Fidelity Long Term Treasury Bond Index Fund – 14.23%

FSCSX – Fidelity Select Software & IT Services Portfolio – 19.68%

My individual brokerage account is comprised of Fidelity Index Funds with a strategy of blending Large Cap, Mid Cap, and Small Cap funds to make a total US Stock Market blend. The funds contain low expense ratios, low turn-over rates making for tax efficient gains in the long run.

Thanks for Reading,

Michael Moran

Scale with LinkedIn Sales Navigator

LinkedIn Sales Navigator is an excellent tool to narrow down and filter prospects by location, title, and much more. It is a $79/month investment toward growing your client base. You can build and save leads lists and organize messaging through the sales navigator inbox. Once you connect with your prospect you are able to add a welcome note. I typically then reach out through messenger with my value proposition. Discover the leads filter down below (2nd image), where you are able to narrow your search based on a number of filters. LinkedIn is a free sales tool where you can prospect for your business and grow your network of working relationships. This is an effective form of direct marketing that can enable business growth. Sales Navigator is a specific investment tool that stimulates business prospecting. Reach out to me with any questions.

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Digital Performance Results: Greater Ottawa County United Way

My whole family has been involved in the nonprofit world for their whole career, and growing up I spent lots of time tagging along and helping out..
I’ve seen first hand what an amazing job local nonprofits do..  
But now i’m older, with a degree marketing and lots of experience in the power of social media, I have to admit something to you;
Many great nonprofits suck at engaging people through social media networking!  I feel so strongly about this that I haven’t just created a non-profit discount, I’ve slashed my social media networking package by 50% for any nonprofit that wants to excel in this 46 Billion dollar part of the industry..
With as little as 5 hours per week, I can transform your engagement success..  

Growing the digital presence of a company has never been more important until now. My social media marketing services are imperative to local west Michigan nonprofits and I will show you how and why this is true. Let’s start off with the performance over a 4 month period of Greater Ottawa County United Way. This nonprofit has over 50+ funding partners in Ottawa County and the main goal of digital presence is to raise capital to disperse throughout local nonprofits in Ottawa County.

Time Range: 2/29/2020 – 6/3/2020:

IMPRESSIONS

ENGAGEMENTS

POST LINK CLICKS

These are the main performance metrics in social media marketing and understand that the goal is to raise capital for the nonprofit funding partners. In the following paragraphs I will break down the three main performance metrics of Impressions, Engagements, and Post Link Clicks to define and analyze these results.

Advertisements

Impressions are the number of times your content is displayed, no matter if it was clicked or not. For the four month period analyzed in this company scenario, the total number of impressions or number of times the content was displayed is 197,097 a 214% increase across four months. Below is a breakdown of the platform impressions across Twitter, Facebook, Instagram, and LinkedIn.

What good are impressions beyond exposure if they are not converted or engaged with? The next metric of review are Engagements, which are defined simply by sprout social as the number of times that users engaged with your posts during the reporting period. In the case of Greater Ottawa County United Way Engagements may lead to interest in donating toward the community and impact solutions. Let’s break down the cross-platform engagements across Twitter, Facebook, Instagram, and LinkedIn.

Engagement rates across all platforms saw an increase and the end goal of this is to gain interested clients to the donation landing page in order to raise capital for disbursement to funding partners in Ottawa County. Therefore the end goal is Post Link Clicks in order to gain as many viewers on the landing page for the best chance of raising capital. The ultimate goal of nonprofits is to raise money and the digital landscape provides donation landing pages for people to give online. Below are the Post Link Click results in the given four month time period. Post Link Clicks is the number of times that users clicked on links from your posts during the reporting period, according to Sprout Social.

The 64% increase in Post Link Clicks gave Greater Ottawa County United Way 510 more donation chances on the landing page than they recorded in previous months. This led to an amount raised of x.

In conclusion Greater Ottawa County United Way greatly benefited from the three main pillars of digital media metrics and analysis. Impressions, Engagement, and Post Link Clicks is the sales funnel that this nonprofit used to generate capital from the public for the disbursement of funds to 50+ local nonprofits.

Give. Advocate. Volunteer. Live United.

Michael Moran

Nonprofit Marketing: Digital Fundraising 💵

In both my corporate and entrepreneurial experience I have collaborated with many industries in the marketing arena. My most recent industry of focus has been nonprofits. Implementing foundation marketing strategies and delivering on those principles through a customized plan has proven successful.

My marketing strategy for nonprofits is largely the same: Value Message + Distribution Channels + Retention = Fundraising Dollars

In the next paragraphs I explain the three core principles that comprise this formula and what each one means specifically. Without fundraising dollars nonprofits are unable to properly fund the community, cover expenses, and ultimately provide payroll for their staff members. Let’s dive in to the formula on how we can maximize fundraising dollars and grow your nonprofit.

Value Message: This portion of the nonprofit marketing strategy consists of providing value and most importantly clarity on what impact the nonprofit has on the community and its neighbors. This is the seed for which you plant your future growth through branding expansion and digital fundraising. Value is the key factor in differentiating your nonprofit from others in getting the community’s dollars working toward your impact with the goal of those dollars being seen in use.

Distribution Channels: Marketing distribution channels are crucial in every industry because simply put, marketing is everything. Surrounding our daily activities through emotional pulls, marketing is present in both physical and digital distribution channels. Social media is the modern day distribution channel hub for many marketing activists who have proven track records at fortune 100 companies. This much is known, however the question is how can we provide value through our distribution channels such as Facebook, Instagram, Twitter, and LinkedIn?

Retention: Building and retaining a following is not an easy task however in nonprofit the fundraising dollars come from continued value. Retention through personal and social engagement is the key to growing a following and raising capital for the community. Recurring contributions are key to growing your nonprofit funding.

I collaborate with companies and nonprofits of all sizes, while managing my own personal services and groups. I’d like to consult with your nonprofit and grow fundraising dollars through the value, distribution, and retention processes. Fundraising dollars raised digitally will put you on the forefront of solving community issues.

Comments Below,

Michael Moran

Marketing Thoughts 🧐 – 4/21/2020

The digital era has never been more saturated with advertisements of personal brands, large companies, movements, events, places, and much more. The rapid invention of new applications and network connectivity expansion has posed for cluttered digital markets and a battle for bandwidth. The 5G advancements are only in the beginning phases of site deployment (see speedtest.net).

I’m starting to wonder if like the U.S. dollar, digital content will lose value as it multiplies or becomes more saturated in origination. The origination of COVID-19 has only encouraged this production of content as almost every nation is in near lock down territory if not completely. The result of these societal market changes will be the need to elevate and change the standard for value. In other words what are you doing differently? As time goes on we will see the negative effects of over saturation in digital markets.

Conducting Basic Marketing Analysis

When discussing the subject of business marketing it is essential to lay the foundations for which you build your target market and distribution channels upon. Basic marketing analysis should be done to establish your marketing plan before implementing it in incremental phases. SWOT Analysis and the Four P’s of Marketing are essential components to establish a marketing plan with. The SWOT analysis stands for Strengths, Weaknesses, Opportunity, Threats. These marketing metrics will determine your plan of action in the marketplace and it will provide reliable information to form a business plan. The situation analysis is comprised of both internal strengths and weaknesses and external opportunities and threats. Competitive advantage is a key quality to maintain as a company because it makes you a threat to other revenue streams and a dominant force in the market. Healthy industry and competition is how the economy thrives in the US, therefore this marketing analysis is contributing toward the well-being of the US economy.

The Four P’s of marketing include price, product, place, and promotion.

Price – What are the levels of pricing? How are the prices justified through value?

Product – What is the main product and service offered by the organization? What are the features and benefits offered?

Place – Which distribution channels should the product or service be targeted?

Promotion – Does the product or service educate, persuade, and remind? How does a customer find out about the product or service?

If you have not conducted basic marketing analysis for your business, I strongly recommend that you start here and build foundations. Stay tuned for the continuation to more advanced marketing analysis practices.

Comment Below,

Michael Moran

Establishing Marketing Foundations

It is very important to establish principles and foundations for marketing and business strategy when first starting out in your business. Foundation and strategy build great companies who are prepared to seek their target market and establish rapport with a specific niche. Specific metrics can be used to measure the progress of your marketing foundations which can turn into future conversions.

#1 – Target Market

One’s target market is the ideal personnel to channel your products and services towards to obtain sales and revenue. In term’s of marketing it is your ‘target market’ who have the strongest chance of becoming ‘qualified buyers’. This may be segmented into separate lists and studied as qualified buyers or a potential re-target prospect.

#2 – Distribution Channels

Once you identify your company’s target market it is time to plan for the distribution channels you will use to market the product or service. The goal of this is to reach qualified buyers that fit your target market who have the best chance of buying the product or service.

Please contact me today to put your foundations in place and build a strategy. I believe through these principles your company will reach new heights.

Comment Below,

Michael Moran