JP Morgan Chase - is considered as one of the oldest and the most powerful investment and commercial banking financial institution on the planet, whose headquarters situated in New York. Advisors, individuals and different institutions see JP Morgan as outstanding investment management professional institute. By having the best investment specialists all around the world, it provides tactics and advices in the field of asset management for each individual or institution. The client of JP Morgan Chase Berkshire Consulting Group is concerned about acquisition, investment and mergers of firms. The task of choosing two portfolios from Multinational Corporations (MNCs) for investment and preparation of investment report proposal for Berkshire …show more content…
Chevron is considered as one of the planet’s outstanding integrated fuel companies. It was founded in 1876 and was previously known as Pacific Coast Oil Co. then Standard Oil Co. From 1984 when the merger between Gulf Oil and Standard Oil took place it became familiar as Chevron. In 2014 Chevron were producing about 2.5 million barrels of oil per day, approximately 75% of that production were out of the borders of the USA. Chevron had nearly 65 thousand of highly skilled employees globally. According to Forbes Chevron are the 16th world’s biggest public company in the world with sales about 191.8 billion USD in 2014 and 19.2 billion USD profits in the same year.(Chevron, 2015)(Forbes, …show more content…
Japanese giant is the top audio, video, informational technology products, key appliances and communications manufacturer for huge public of consumers. It was founded in 7th of May 1946 and currently employees almost 132 thousand workforce. According to corporate info delivered by Sony website operating revenue of Sony in were equal to 99 billion USD. (Sony, 2015) It also must be stated that there are number of risks associated with investments: 1. Business Risk. It is a risk related with possibility of the business (issuer) to go bankrupt and/or not having an opportunity to pay an interest payment of specific security. Let’s assume that Chevron or Sony because of some issues could not pay interests in future, the one who will invest on these two corporations take the risk of being unpaid. This risk can be diminished by purchasing the stock of mutual funds that hold the stock of number of companies. 2. Credit Risk. This is the risk of business not being able to pay future principal repayments and/or interest rate payments. Mainly, if the credit risk is high, interest rate of debt will also be