Persuasive+Message+II;+Investing+in+the+Future

November 29, 2013

The Daily Roll

Board Members

Dear Board Members,

As business people we are aware that investing in just one investment is not a wise decision because it does not allow a business to grow. We should vision for the future.

Companies that go beyond their fields are the ones that have prevailed through time. Big companies such as Procter and Gamble have managed their capital in such a way that keeps them up to date, actively producing from toilet paper to softeners since 1837.

The Daily Roll is a company which keeps growing every day, and because of this, I am sure about our company`s success in the market. As competitors we want to have the resources necessary to continue going forward.

Right now, there are other competitors that are trying to put us behind them; however we have a resource which they do not have. I am talking about our savings of $5,000,000.00, and we can make it grow more and more. I remember my Management professor, “Mr. Anthony Miller” at the University of New York saying that we must put our eggs in more than just one basket, and he was right.

We need to invest not only in the toilet paper industry, but also in other areas like the food industry, the healthcare industry, and in bonds.

People will always eat, so investing in the food industry is a wise investment. While I was searching for information, I obtained data about a particular food company known as Kraft Foods, Inc. This company is well structured and is always innovating.

Kraft foods, Inc. was oriented toward dairy products, but today it sells biscuits, confectionary, beverages, cheese, convenient meals and various packaged grocery products. Kraft sells its products in approximately 170 countries around the globe, and its annual revenue is more than $54 billion.

We should use $25,000.00 from our savings to buy stocks from Kraft Foods, Inc. This company is currently trading on NYSE; this week the closing price per share was $39. We can purchase these stocks at $39 and now and own 641 stocks from Kraft Foods, Inc.

Kraft foods Incorporated, is taking significant steps to get on track for sustainable growth. It is a strong and profitable food and beverage industry, a leader with great global potential. Historically, this company paid an annual average return to shareholders from a 10.6% to a 16% percent. Last year Kraft’s return, which was 10.6%, it would take us at least five years to see a fair increase on this investment, but it would be worth it.

Currently in the United States, healthcare is a topic that is a concern to every American citizen. At some point, everybody in his or her lifetime will need health insurance. I am proposing an investment of 25% of our capital in UnitedHealth Group Incorporated (UNH), a company which provides healthcare services in the United States. It offers consumer- orientated health benefits and services to national employers, mid-sized employers, public sector employers, small businesses, and also to individuals. For individuals who are fifty years old or older, this company provides health and well -being services.

The services are offered through a network of seven hundred thirty thousand physicians and five thousand three hundred hospitals nationwide. Last year, UnitedHealth Group Incorporated (UNH) paid shareholders an annual return of 18.70% and the year before, it paid 17.94%. So, we should invest $1,250,000.00 on UNH. According to UNH annual returns, in four years we will see a fair increase on this investment.

We want and we need a diversified investment portfolio; therefore we should invest another part of our money in bonds. We will be lending money to the government, municipality, corporation or other institution. Something that we must consider at the moment for purchasing bonds is the risk of these assets. Variables like the price, interest rate maturity, and yield might affect the profitability of this investment; however bonds are the less risky investment in the market.

An excellent institution from where we could buy bonds is Duke Energy Bonds. Duke Energy is one of the largest electric powers in the United States. It owns approximately 36 megawatts of electric generating capacity in the Carolinas and in the Midwest. It distributes natural gas in Ohio and Kentucky. This is a corporation that has its origin in the1900`s and still serves today as one of the strongest in its field. We could invest $100,000.00 in a medium term maturity of ten years with an interest rate of 8.50 %.

I will be presenting this proposal in the upcoming boar meeting on December 20, 2013.

Sincerely,

Aquileidy Perez DR Financial Manager