1. 1
University of Hartford
BAR-510/511
Applied Financial Analysis and Investment
2013-2014 Annual Report

2. 2
Table of Contents
I. Letter to Shareholders ………………………………………………………………….. 3
II. Global Fund ……………………………………………………………………………... 5
Global Performance Metrics
Methodology for Global Investments
Forward Guidance
III. Green Fund ……………………………………………………………………….……... 9
Performance Metrics
Methodology for Green Investments
Forward Guidance
IV. Lessons Learned ………………………………………………………………….……. 14
BAR-510/511’s Alignment with the Barney Mission
Student Knowledge Gained
Overall Benefit of BAR-510/511
V. Signature Page …………………………………………………………………………. 16
VI. Appendix ……………………………………………………………………………….. 17
Portfolio Methodology
Portfolio Allocation by Dollar Value
Portfolio Allocation by Sector
VII. Company Overviews ………………………………………………………………..…. 21
Abbott Laboratories (ABT)
Archer Daniels Midland Company (ADM)
Chinese National Offshore Oil Company (CEO)
CST Brands Inc. (CST)
EMC Corporation (EMC)
QualComm Incorporated (QCOM)
United Technologies Corporation (UTX)
Valero Energy Corporation (VLO)
Apple Inc. (AAPL)
3M Corporation (MMM)
Hilton Worldwide Holdings Inc. (HLT)
NextEra Energy, Inc. (NEE)

3. 3
I. Letter to Shareholders
Dear University of Hartford Foundation Members and Investment Advisor Board Members,
On behalf of the BAR-510/511 students, we want to thank you for this valuable opportunity to
present you with our final report and assessment of our management. With the conclusion of the
2013-2014 academic year, the BAR portfolio achieved a total capital gain of $24,038 as of April
28th, 2014. These gains translate into an overall 13.8% return on investment since the delivery of
the BAR portfolio to students on September 9th of 2013.
On a consolidated basis, the BAR portfolio outperformed the weighted benchmark by 52.0%.
Primarily driving the outstanding performance were four legacy positions that were inherited
with the portfolio’s delivery on September 9th; Valero Energy Corporation, Archer Daniels
Midland Company, QualComm Incorporated, and Apple Inc. Identifying legacy stocks as the
high performers of the portfolio is intended as evidence that the BAR-510/511 multi-year
investment strategy will yield favorable returns despite short-sighted concerns over market
volatility.
The BAR portfolio is comprised of the Global Fund and the Green Fund, each managed by a
unique set of guidelines. On an individual basis the Global fund performed remarkably well,
returning 14.2 percent on global investments, which is a 1.83 multiple of the calculated
benchmark. On an individual basis the Green Fund offered returns of 13.0%, outperforming its
calculated benchmark by a 1.16 multiple. Both the Global Fund and Green Fund will be
discussed at some detail in the following report.
While the mission of BAR curriculum is first and foremost educational, students must also
ensure their good stewardship of the Foundation’s funds and earn a reasonable rate of risk-
adjusted return relative to each funds benchmark. Students understand that they are managing
this fund for the benefit of the Foundation and its beneficiaries and therefore must act
accordingly by adhering to the Prospectus and keeping in mind the Foundation’s goals and
constraints. To ensure this the students set in place processes for arriving at decisions and
engaged in vigorous, stimulating debates over ideas and proposals to ensure they were fully
vetted by the management team.

4. 4
Performance against the Benchmark
Portfolio Initial Value Final Value Gain ROI Weight Benchmark Outperform
Green Fund 65,361 73,895 8,534 13.06% 0.37 11.24% 1.82%
Global Fund 108,958 124,462 15,504 14.23% 0.63 7.79% 6.44%
Consolidated 174,319 198,357 24,038 13.79
%
9.07% 4.72%
7.79%
14.23%
11.24%
13.06%
9.07%
13.79%
$65,361
$8,534
$108,958 $15,504
Global Capital
Investment
Green
Capital
Inestment
Global
Gains
Green Gains

5. 5
II. Global Fund
Global Performance Metrics
The three stocks largely contributed to the performance of the Global Fund were Valero Energy
(VLO), Archer Daniels Midland (ADM), and Qualcomm (QCOM). The decision was to sell the
full VLO position in April during all time market highs, locking in a realized gain of 43.41%
since September, when the BAR510 students inherited the legacy portfolio. At the time of sale,
VLO comprised a 19.65% stake of the overall fund weight. In addition the full ADM position
was also sold on a cyclical high to lock in a realized gain of 21.77%, and had comprised a 9.94%
stake of the fund weight at the time of sale. Content with the steady performance of QCOM, the
position remains active in the portfolio with an unrealized gain of 13.64%, and comprised a
12.08% stake of portfolio weight before final sales.
The three bottom stocks in the Global Fund were Chinese National Offshore Oil (CEO), Abbott
Laboratories (ABT), and CST Brands (CST). After routine disappointment and an unfavorable
outlook on the company’s future, it was decided to sell the full CEO position in December of
2013, mitigating against further losses. The sale of the full CEO stake locked in a realized loss of
-1.90%, and comprised a fund weight of 9.24% at the time of sale. It’s worth noting, CEO stock
value fell nearly 20% since the time of sale. The stake in ABT remains actively held, currently
showing an unrealized loss of 2.25%, and a fund weight of 18.36%. CST was a spin-off
acquisition of VLO, and was sold for a realized gain of 1.09% with a fund weight of 1.78% at the
time of sale.
Global Fund’s Value of investment
Within the 2013-2014 academic year of this class, five of the eight stocks within the Global Fund
were sold. These stocks included; VLO, ADM, CST, EMC, and CEO. In respect to performance,
the class’s action to sell VLO and ADM was designed to realize large capital gains before
downside adjustment and manage our levels of potential risk. The sale of EMC and CEO were
both targeted towards minimizing downside potential, as both stocks had poor overall
performance during the time frame for which they were held. After keying in on the decision to
mitigate our risk exposure from these underperformers, the sale of these stocks was executed
$21,405 $20,903 $20,003
$13,167
$10,833 $10,634 $10,068
$1,945
$30,698
$21,427
$20,453
$14,963
$13,191
$11,888
$1,966
VLO EMC ABT QCOM ADM UTX CEO CST
Gain/loss on investment
Initial investment value
$9,876

6. 6
precisely after thorough analysis of these individual companies. The executed sale decision of
CST was determined after an in depth company analysis and review of growth potential, along
with the consideration to reasons why VLO had chosen to spin-off CST.
Global Fund’s Performance Table
Stock
# of
shares
Initial
value per
share ($)
Initial
value ($)
Initial
Weight
Sold/
close per
share ($)
Sold/ close
ex. div. ($)
Collected
dividend
($)
Final value
($)
Gain/
loss (%)
VLO 585 36.59 21,405 0.20 52.00 30,420 278 30,698 43.41%
EMC 782 26.73 20,903 0.19 27.20 21,270 156 21,427 2.51%
ABT 527 37.96 20,003 0.18 38.37 20,221 232 20,453 2.25%
QCOM 190 69.30 13,167 0.12 78.05 14,830 133 14,963 13.64%
ADM 300 36.11 10,833 0.10 43.54 13,062 129 13,191 21.77%
UTX 100 106.34 10,634 0.10 117.70 11,770 118 11,888 11.80%
CEO 48 209.75 10,068 0.09 205.76 9,876 - 9,876 -1.90%
CST 65 29.92 1,945 0.02 30.06 1,954 12 1,966 1.09%
Total $108,958 $123,403 $1,058 $124,462 14.23%
Global Fund’s Weighted Allocation at Initial Value
VLO
19.65%
EMC
19.18%
ABT
18.36%
QCOM
12.08%
ADM
9.94%
UTX
9.76%
CEO
9.24%
CST
1.78%

7. 7
Methodology for Global Investments
Defining Global - The Global fund is an equity security of any multinational corporation (MNC),
where the company engages in some significant form of international business, or of an
international company with business established solely oversees, via stocks, ADRs, stock mutual
funds, exchange-traded funds (ETFs) and exchange-traded funds (ETNs). The Global fund will
invest in both foreign and U.S. companies. Global positions have typically been common stock
traded on the U.S. stock exchanges.
Investment Goals - The managers of the Global Fund are primarily concerned with the growth of
capital and preserving the principal over long-term. The performance objective is to manage the
Global Funds average annual real rate of return to exceed the rate of inflation as measured by
CPI plus the costs associated with managing Global Fund securities, at least 4.5% per year as
well as the weighted average of indices as defined below. In the most recent term, the Global
portfolio looks to realize a minimum total rate of return of 6.4% which is consistent with the
specified weighted benchmark listed below. The team is willing to accept short-term fluctuations
in return for the benefit of long-term appreciation.
Time Horizon - Investment time horizon for an individual Global position is determined based on
management's decision for income needs, desired rate of return and tolerable risk exposure for a
particular equity. These factors influence our investment vehicle's criterion. Typically, intended
investment durations have been a minimum of 18-24 months, although unforeseen events may
give cause to premature or latent sale of the underlying security.
Risk Tolerance - Managers are willing to accept moderate levels of risk equally balancing the
potential for enhanced returns. The managers of the Global Fund are historically been more
conservative, accepting only modest risks to achieve the benefits of long-term returns.
Evaluation Benchmarks - The appropriate benchmark to measure the performance of the Global
portfolio was calculated to be 7.79%, and is the weighted average of indices as follows:
Calculation of Global Fund’s Benchmark
Index Ticker Symbol Weight Growth Over Duration of Ownership Weighted Growth
S&P 500 ^GSPC 0.40 11.47% 4.59%
MSCI EAFE EFA 0.40 8.76% 3.50%
MSCI EM EMEA EEME 0.10 -1.36% -0.14%
MSCI Latin America EEML 0.10 -1.66% -0.17%
Total 7.79%

8. 8
Forward Guidance
Going forward it is clear to see that the Global Fund has reduced many of its holdings during this
investment period and currently has shares in three companies to carry over into the next
investment period. By locking in our upside gains this period, we believe to have decrease our
risk potential in global market movement over the unmanaged summer period. It is from this
action that it can be identified that the next managers of the portfolio will have the potential to
assess new opportunities with valuable information come next fall.
United Technologies (UTX)
We believe, by maintaining their position as a top industrial goods corporation within the
aerospace and services sectors, United Technologies has shown good returns with significant
annual dividend yield. Maintaining its position in the portfolio as a long stock position, we
expect growth of United Technologies to be driven by M&A activity and maintaining a lean
operations profile. While positioned as a diversified industrial stock, we identify that significant
changes in the aerospace industry will have to be analyzed in respect to this stock moving
forward (note: SpaceX, Boeing, and Lockheed Martin).
Abbott Laboratories (ABT)
We believe the company has relatively strong positions in key health care product categories,
with prospects brightened by ongoing launches of new medical products, and expansion in
emerging markets. We also view the company as financially strong, with a sound balance sheet.
We look to hold this position in the portfolio as a defensive stock and to balance against any
volatility. In October 2013, ABT announced it is raising its quarterly dividend 57%, to $0.22 a
share from $0.14 and in January 2014, ABT also announced a $2 billion stock repurchase
program.
Qualcomm (QCOM)
We believe QCOM's intellectual property and healthy cash flow makes this stock a hold. QCOM
has a strong position in its industry, with high barriers to entry, CDMA (code division multiple
access) intellectual property and economies of scale on CDMA chipsets (3g and LTE) create
strong moats around its business. The company expects the second half of the year to be
substantially better than the first half, as LTE sales ramp up in China and its cost-cutting efforts
show their full impact.

9. 9
III. Green Portfolio
Performance Metrics
The Green Portfolio consists of four stocks; Apple Inc. (AAPL), 3M Company (MMM), NextEra
Energy Inc. (NEE), and Hilton Worldwide Holdings Inc. (HLT). Any equity purchased as part
of the Green portfolio will typically be held for a two-year investment period. Green stocks can
be volatile in the short term but often produce steady gains over a longer period of time. The
Green portfolio is relatively young with the exception of Apple Inc., a legacy stock position
which was inherited from the 2012-2013 BAR portfolio, and constituted approximately 45.7% of
the portfolio as of April 28th. The Green Portfolio realized a 13.06% return on investment,
outperforming the industry benchmark of 11.24% by 16.10%.
Apple and NEE were the major contributing stocks to the overall performance of the Green
Portfolio. Apple was a legacy stock inherited by the Green Fund and was elected to hold due to
new product releases of the iPhone 5S, iPhone 5C and iPad mini during the fourth quarter
holiday rush which projected a strong sales forecast. As anticipated, volatility in the technology
sector caused Apple's stock value to fluctuate, however, at present Apple has generated an
unrealized gain of 18.57% since it was inherited in September 9, 2013 and has outperformed the
benchmark by 64.25%. Partly attributed to the success of Apple are strong first quarter phone
sales especially in China, increased dividends, and the anticipated stock split of 7:1 on June 6th,
2014.
NEE has performed extremely well since the initial investment was made in November of 2013,
generating an unrealized gain of 15.97%. Overall, the NEE position has outperformed the
calculated benchmark by 41.07%, and continues to experience a steadily increasing in stock
valuation.
3M and Hilton are long term buys that have we anticipate to generate steady gains in the long
term. 3M Company was purchased in November of 2013 for $128.34 a share as a long term
investment. Given the volatility in the stock market leading up to the year-end of 2013, the class
had placed a ceiling of $140 per share on 3M stock; this was a calculated price that 3M could
potentially reach before pulling back during Winter Break. Historically, 3M has generated the
greatest earnings in the fourth quarter of its fiscal year propelling stock value to its peak.
Therefore, the class anticipated a similar increase in value for 2013 and wanted to lock in these
gains. The class had intended to buy back 3M upon return of the class below the price ceiling for
future growth. Unfortunately, upon returning in Spring Semester, we were alerted that the stock
had not been sold by the broker and the market did in fact pull back shortly thereafter. If the
stock had been sold as the student's had desired, 3M would have yielded a gain of 9.51% just shy
of the benchmark at that time. At present, 3M has generated an unrealized gain of 8.10%.
Hilton is the newest addition to the Green portfolio acquired only within the last month and has
generated an unrealized loss of 4.81% as of closing on April 28th
.

10. 10
Green Fund’s Value of Investment
NEE has consistently outperformed the market over the last five years and continues to be a low
beta stock that offers a high dividend payout on a quarterly basis. For these reasons, the class has
rated NEE as a hold. 3M is an attractive investment to the class due to its long standing history of
innovation and its strong understanding of its core competencies leading to a well-defined and
focused strategy. 3M also offers competitive quarterly dividends and is diversified in its product
offering which boasts continued organic growth year over year. At this time, we believe that 3M
continues to have long term growth potential and is rated as a hold by the class. Apple is a legacy
stock with low price to earnings ratio of 12.87 and cash reserves over $150 billion for future
investments. Long-term, we seek to reduce our position in Apple to mitigate our risk in the
market but are currently holding onto our position as we still see upside potential. Hilton was
purchased as a hold for long term investment by the portfolio managers, despite it’s out of the
gate performance. Hilton has the opportunity to sell large owned-properties to improve their
below industry Return on Asset ratio of 2.57 and expand their franchising business model to
improve their below industry average profit margin of 4.26%. New green technologies should
also improve operational efficiencies and improve their bottom line.
Green Fund’s Performance Table
Stock
# of
shares
Initial
value per
share ($)
Initial
value ($)
Initial
weight
Sold/close
per share ($)
Sold/close
value ex. div.
($)
Collected
dividend ($)
Final
value ($)
Gain/
loss (%)
AAPL 59 506.17 29,864 0.46 594.09 35,051 360 35,411 18.57%
MMM 150 128.34 19,251 0.29 137.23 20,585 225 20,810 8.10%
NEE 125 85.07 10,634 0.16 97.27 12,159 173 12,332 15.97%
HLT 250 22.45 5,613 0.09 21.37 5,343 - 5,343 -4.81%
Total $65,361 $73,137 $758 $73,895 13.06%
$29,864
$19,251
$10,634
$5,613
$35,411
$20,810
$12,332
AAPL MMM NEE HLT
Gain/loss on investment
Initial investment value
$5,343

11. 11
Green Fund’s Weighted Allocation at Initial Value
Methodology for Green Investments
Green Equity Selection:
For the purpose of the BAR-510/511 courses, equity is classified as 'Green' if it could be
categorized as a Green Energy investment, a Green product investment, or a Green Business
investment. To qualify as a green energy investment, the company must provide, develop, or
support the various forms of environment friendlier energy that can include solar, wind,
geothermal, alternative fuels, and small impact hydro. The company must also have a culture
and business practices that support the environment. A Green Product investment is an
investment in an enterprise whose core business or revenue is generated from environmentally
friendly products or services. Lastly, a Green Business investment is an investment in an
enterprise whose business practices rest on the principles of sustainability. The primary goal of
the enterprise is to engage in business practices that have a minimal impact on the global or local
environment, community, society, or economy. This can be through the products or services
offered or through environmentally and socially responsible operational practices.
Investment Objectives:
The primary objective of the Green Fund was to realize a rate of return that meets or exceeds the
realized rate of return of the market at large while taking inflation into account. Since Green
equities are volatile in nature, any securities purchased for the Green portfolio were for a
minimum of two year outlook.
AAPL
45.69%
MMM
29.45%
NEE
16.27%
HLT
8.59%

12. 12
Benchmark:
The Green Fund was evaluated against a benchmark of a weighted average of three major stock
indices - The Calvert Social Index, Russell 3000 Index Fund, and the S&P 500 Index. All three
indices are comprised of large or mid-cap US - based companies and are industry accepted as
accurate indicators of the U.S. economy as a whole. The S&P 500 and Russell 3000 Indexes
were weighted equally as 40% of the benchmark and the Calvert Social Index was weighted as
10% of the benchmark. For each index, the rate of return was calculated from September 9, 2013
to April 11, 2014 - the time period in which we had to make investments - and the weighted
average was utilized as the benchmark against which each stock as well as the entire green
portfolio was measured. The weighted realized return of the benchmark was 11.24% against
which the green portfolio realized a return of 13.06%.
Calculation of Green Fund’s Benchmark
Index Ticker Symbol Weight Growth Over Duration of Ownership Weighted Growth
S&P 500 ^GSPC 0.40 11.47% 4.59%
Russell 3000 ^RUA 0.40 11.18% 4.47%
Calvert Social Index ^CALVIN 0.20 10.88% 2.18%
Total 11.24%
We believe that the selection of which indices to use as part of our benchmark was critical in
obtaining an accurate measure of the performance of the Green portfolio. Unique to the Calvert
Social Index is that all securities in the index have to meet Calvert's criteria for sustainable and
responsible investing. This was the closest measure to a Green Equity Index in the market. The
Russell 3000 Index fund is an equity index that encompasses the 3,000 largest U.S.-traded stocks
and is the best representation of the economy at large. Lastly, the S&P 500 index is an index of
500 stocks that reflect the risk and return characteristics of large cap companies. The companies
in the index are selected by a team of analysts at Standard and Poor's. Collectively these indexes
provided us with an accurate and reliable benchmark.

13. 13
Forward Guidance
Apple (AAPL)
Apple continues to be a strong stock to hold, a 7:1 stock split scheduled for June 6th and strong
indication that the new iPhone 6 will be released during Q3 should boost stock value. However,
beware of 1st quarter volatility if company does not meet market expectations following the
holiday season. Sell if Apple meets portfolio targets.
Hilton (HLT)
Hilton was purchased as a hold for long term investment by the portfolio managers. Hilton has
opportunity to sell large owned-properties to improve their below industry Return on Asset ratio
of 2.57 and expand their franchising business model to improve their below industry average
profit margin of 4.26%. New green technologies should also improve operational efficiencies
and improve their bottom line. It will be important to monitor the Blackstone Group L.P. (BX)
and if they expand or divest their 76% ownership stake, it will be our recommendation to sell the
position in parallel.
3M (MMM)
3M is a hold for long term investment; the company stock will gain value as the company
manages their portfolio for relevance and transforming their business. 3M is careful to prioritize
their platforms in the right geographies and focus on the development of only their most
profitable products. 3M plans on achieving economies of scale and regional independence by
further developing its manufacturing and regional distribution centers, while selling
underperforming segments such as their chemicals business completing acquisitions of local
players in regional markets to widen the customer base to further refine its product offering.
There is also a 5 year stock repurchase program in place.
NextEra Energy (NEE)
NextEra Energy continues to have long term growth potential and will be retained as part of our
portfolio. The statistical analysis of the stock price over the last five years shows steady growth
beating the benchmark with low volatility. The low beta and annual dividend return value make
this a favorable stock to retain.

14. 14
IV. Lessons Learned
BAR-510/511’s Alignment with the Barney Mission
MISSION:
The Barney School of Business prepares individuals to be leaders and decision makers who are
globally aware and socially responsible by:
 Creating a student-focused learning environment
 Engaging in a broad range of scholarly activities to improve the practice of business
 Maintaining strong relationships with business, not-for-profit and government entities to
facilitate their interaction with our students and faculty in a wide variety of activities.
VALUE:
 We value faculty excellence in teaching and research.
 We value global awareness and an appreciation for diversity.
 We value ethical behavior, social responsibility, and service to the university and external
communities.
FORWARD DIRECTIONS:
 Provide more value-added academic experiences
 Improve the MBA recruiting approach, methods of course delivery and curriculum design
 Incorporate more elements of our Mission in the undergraduate and graduate curriculum
Student Knowledge Gained
We, the students, are walking away with arguably one of the most important life lessons of all;
managing money and acting as a fiduciary to the client. Some people take decades or a lifetime
to learn how to manage their assets and, even more importantly, someone else’s investments.
Together we have learned to not only allocate various investment vehicles in the portfolio to
have it generate higher returns on investment, but we have gained transferable knowledge that
can be taken to a job or utilized to grow our personal retirement portfolios.
Choosing an investment
There are several factors that influenced our consideration of a stock to buy. Collectively as a
group of analysts, we started with a reason. There had to be a reason to risk money on a
company’s performance while meeting the metrics laid forth by the course. Not only did a
company have to be “Global” or “Green,” by virtue of the course definition, it had to have a
proven ability to grow its earnings and have a sustainable competitive advantage over its peers.
Some fundamental numbers and ratios we took into consideration were Beta, P/E ratio (price to
earnings ratio), EPS (earnings per share), dividend, and overall market capitalization. Chartist
analysis was only used moderately and was limited to Bollinger Bands, (SMA) simple moving
average, and EMA (exponential moving average.
Behavior in a boardroom

15. 15
One of the most important aspects in behaving like a boardroom is being able to listen and make
judgments. While one person is speaking or pitching their stock, others should be listening
attentively and building a reply that is pertinent to the conversation. One should not sit idly by
while someone is speaking and not listen. The practice of speaking and not contributing to the
given conversation is devastating to the progress of what’s being discussed.
Overall Benefit of BAR-510/511
University of Hartford’s Applied Financial Analysis & Investment course provides students with
a real-world opportunity to actively manage a portfolio side-by-side with faculty and fellow
students. With this learning environment, not only did students benefit from the education being
provided to them but the University also benefited by assuring that the long-term investment
objectives of the Universities’ General Endowment are maximized in terms of real returns, or the
nominal returns adjusted to inflation, of the assets over a complete market cycle with the
emphasis on preserving capital and reducing volatility through prudent diversification. Along
with the beliefs of the University, the students adopted an investment strategy that pursued long-
term objectives of producing real growth of assets in lieu of the fund’s requirements and
restrictions. During this period, the BAR-510/511 class achieved a total capital gain over
$24,000, translating into an approximate fourteen percent return on investment and beating the
overall portfolio benchmark by 5.7 points
During the course of this class, students acquired many valuable skills that will help them to
succeed in their future careers. As acting fiduciaries, students learn how to make important
economic decisions with the client’s money all while keeping the client’s mission, vision and
objectives in mind. The BAR-510/511 course has provided students with an important
foundation for their individual investment goal. The BAR-510/511 course is an investment all in
its own, paying-out great dividends now and far into the future.

16. 16
V. Signature Page
“The 2013-2014 student managers of the BAR portfolio, hereby certify all material discussed has been
portrayed accurately and truthfully”
______________________
Attenello, Robert
Global Fund Manager
_______________________
Bellini, Craig
Global Fund Manager
_______________________
Frenkel, Ruslana
Green Fund Manager
_______________________
Hamid-Banks, Sabah
Green Fund Manager
_______________________
Khare, Harsh
Green Fund Manager
_______________________
Masciotra, Conner
Global Fund Manager
_______________________
Podolski, James
Global Fund Manager
_______________________
Romero, Andres
Green Fund Manager
_______________________
Slaiby, Andrew
Green Fund Manager

17. 17
VI. Appendix
Portfolio Methodology
Asset Allocation:
Seeks to diversify BAR portfolio in terms of industry sector and investment types such as
common stocks, ETFs, ETNS, mutual funds and ADRs.
Benefits:
Diversification
By Investing in Global and Green Stocks, an investor adds more diversification to the investment
portfolio mitigating portfolio volatility over time.
Growth
MNCs have more growth possibilities by expanding their businesses to the markets worldwide.
Risks:
Higher Volatility
Global Stocks are generally more volatile because of the exposure to other countries with
different from the US macro-environment. Economic and political instabilities in developing and
emerging markets may raise stock's volatility.
Dramatic Changes in Market Value
Fluctuating interest rates and foreign exchange rates may affect stock's value.
Investment Selection Procedure:
Voting process:
The BAR-510/511 team will present a selected investment vehicle for consideration to the
students and professors. The team will consider the investment opportunity and vote on it. The
security gets selected if the majority of the team selects the investment to the overall Barney
Portfolio. An email to the broker will be sent to execute purchase of the security after it is
selected.
Maximum dollar investment:
Maximum investment in one equity instrument is $25,000.

18. 18
Prohibited Assets
 Commodities
 Any Derivatives instruments such as Futures and Options Contracts
 Real Estate Properties including REITS
Rebalancing:
To ensure that BAR portfolio does not overemphasize any asset category, or to return portfolio to
a desired level of risk, rebalancing of the portfolio will be performed. Rebalancing could entail:
 Sell off all shares of the investment from over-weighted asset categories
 Purchase new investment vehicle for under-weighted asset categories
 Alter the number of shares for the specific investment vehicle based on the risk tolerance,
investment goal or time horizon.
Portfolio Allocation by Dollar Value
When the BAR510 team started managing the Portfolio on September 9, 2013, the team inherited
some legacy stocks such as AAPL, VLO, QCOM, EMC, ADM, CEO and a spin-off CST stock
from the previous BAR510 class into our Portfolio. The Pareto chart below shows that
approximately 80% of the total Portfolio dollar value came from about 20% of stocks in the
Portfolio, mainly, AAPL, VLO and EMC.
As we progressed through the course, we have rebalanced some equity holdings by selling or
reducing the number of shares in the Portfolio. As a result, at the end of the course, as of April
28th we held ABT, QCOM, AAPL, MMM, NEE, HLT and UTX. Based on the dollar value each
stock contained in the Portfolio, major 20% of stocks that made up about 80% of the overall
Portfolio were AAPL, MMM and ABT.

19. 19
Portfolio Allocation by Individual Investment

20. 20
Portfolio Allocation by Sector
We understand that a well-balanced equity portfolio should be appropriately invested in the
various sectors comprising of the technology, industrials, healthcare and utilities. As of April
28th, 2014, BAR Portfolio holdings were allocated among such sectors as Industrials 17.85%,
Consumer Cyclical 17.84%, Technology 17.77% and Utilities 8.92%. The equity holdings of
BAR portfolio had disproportionately accumulated in the Healthcare sector, comprising about
37.62%.
(Morningstar, 2014)
Source: Morningstar, 2014.

21. 21
VII. Company Overviews
Abbott Laboratories (ABT)
Company Overview: (www.abbott.com)
Following the early January 2013 spinoff of its research-based pharmaceuticals operations in the
form shares in a new company called AbbVie (ABV), Abbott's businesses are now largely
concentrated in nutritional products, diagnostics, established pharmaceuticals (branded generics),
and medical devices. These diverse operations are largely a result of strategic acquisitions made
over the years, as well as from internal R&D programs. Abbott commands leading market
positions in immunoassay and blood screening products, coronary metallic drug-eluting stents,
LASIK devices, and pediatric nutritionals (in the U.S.). The company is the worldwide leader in
adult nutritionals.
The company's continuing established pharmaceuticals business comprise branded generics
which are sold in emerging markets (50% of this division's sales) and developed markets (50%).
Branded generics typically command higher margins than conventional generics, especially in
emerging markets, as their branded labels afford them a sense of quality and reliability over
unbranded drugs. ABT's growth strategy for this business comprises efforts to increase the
breadth of product offerings by launching new and improved formulations, and registering
products across multiple geographic regions. ABT offers a wide range of tests and diagnostic
systems for blood banks, hospitals, and labs. Principal products include screening tests for
hepatitis, HIV, and other infectious diseases, and for cancer; clinical chemistry systems;
diagnostic instruments and chemical reagents; immunoassay test kits; hematology systems and
reagents; and pregnancy tests.
Rationale for Buying
ABT was purchased during the operation of the class in November 2013. The stock was valued
at $37.95 at the time of purchase and has held steady. This stock is considered a defensive stock
because it provides a constant dividend and stable earnings regardless of the state of the overall
stock market. Noticing a positive trend in the overall healthcare sector of the market, ABT was
purchased to diversify the portfolio into this sector. Going into a tumultuous and uncertain 2014,
we felt there was a need to have an anchor in the portfolio and ABT has performed well for what
we expected under ambiguous news from emerging markets, the Federal Reserve, and a recent
pullback in the overall healthcare market due to uncertainties stemming from Affordable Care
Act.

22. 22
Archer Daniels Midland Company (ADM)
Company Overview: (www.adm.com)
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises
agricultural commodities and products. The company’s Oilseeds Processing segment originates
merchandises, crushes, and processes soybeans and soft seeds into vegetable oils and protein
meals. Its products include ingredients for the food, feed, energy, and industrial products
industries; crude vegetable and salad oils; margarine, shortening, and other food products;
refined oils; oilseed protein meals; cottonseed flour; and cotton cellulose pulp. This segment also
blends fertilizers; procures and processes cocoa beans into cocoa liquor, cocoa butter, cocoa
powder, chocolate, and various compounds; and supplies peanuts and peanut-derived
ingredients, and agricultural commodity raw materials.
In addition, it is involved in the oil palm cultivation, sugar milling and refining, biodiesel
manufacturing, and grains processing activities; and provision of specialty fats and oleo
chemicals. Its Corn Processing segment converts corn into sweeteners, starches, and bio
products. This segments products comprise syrup, glucose, and dextrose; alcohol, amino acids,
and other specialty food and animal feed ingredients; ethyl alcohol; corn gluten feed and meals,
and distillers grains; citric and lactic acids, lactates, sorbitol, xanthan gum, and glycols;
propylene and ethylene glycol; and sugarcane ethanol, as well as fresh and dry yeast.
The company’s Agricultural Services segment buys, stores, cleans, and transports oilseeds, corn,
wheat, milo, oats, rice, and barley; and resells those commodities as food and feed ingredients. It
is also involved in merchandising agricultural commodities and processed products; processing
wheat into wheat flour; and processing and distributing formula feeds, animal health and
nutrition products, and edible beans. The company is also engaged in futures commission
merchant activities. The company was founded in 1898 and is headquartered in Decatur, Illinois.
Stock Analysis
ADM’s Market Cap is currently around $28.70 billion. Its stock is traded on the New York Stock
Exchange (NYSE) under the ticker: ADM. ADM operates in the Consumer Goods sector while
operating within the Farm Products industry. ADM has a P/E ratio of 21.58. Forward P/E: 12.86.
ADM pays a quarterly dividend rate of $0.24, or annual rate of $0.96 with a yield of 2.20% with
a current beta of 1.13. The stock has gained $2,247.00 or 20.74% throughout the two semesters
that we have held it.
Rationale for Buying
ADM was an inherited stock that remained in the portfolio from the BAR 510/511 class in the
2012-2013 academic year. We currently hold 300 shares that hold a market value of $13,080.00.
The former class purchased this stock at $27.41 on 10/23/13. We inherited this stock on 9/9/13 at
a price of $36.11. Reasons for buying into this stock were not considered by this class as it was
already contained in the portfolio. Due to learning about our position it was not maintained
properly.

23. 23
Chinese National Offshore Oil Company (CEO)
Company Overview: (www.cnoocltd.com)
CNOOC Limited, an investment holding company, explores for, develops, produces, and sells oil
and natural gas. It produces offshore crude oil and natural gas. Its core operation areas are Bohai,
Western South China Sea, Eastern South China Sea, and East China Sea in offshore China. The
company also has oil and gas assets in Asia, Africa, North America, South America, Oceania,
and Europe. As of December 31, 2012, it owned net proved reserves of approximately 3.49
billion barrels-of-oil equivalent. CNOOC Limited also provides bond issuance services. The
company is based in Hong Kong, Hong Kong, and is considered a Red Chip company due to its
listing on the Hong Kong Stock Exchange. CNOOC Limited is a subsidiary of China National
Offshore Oil Corporation.
Stock Analysis
CEO's Market Cap is currently around $69.51 billion. Its stock is traded on the New York Stock
Exchange (NYSE) under Ticker: CEO. CEO operates in Energy sector while primarily operating
within the Oil and Gas industry.
Rationale for Buying
CEO was an inherited stock that remained in the portfolio from the last class before us. This
legacy stock was purchased by the last class at $208.84 on 11/20/12. In respect to our yearly
performance we will use an inherited value of $209.75 on 9/9/13.
Reasons for buying into this stock were not considered by this class as it was already contained
in the portfolio. Our approach as portfolio managers was to monitor the performance of this
company as the course was operating. Within the time of the initial purchase of CEO there were
two collected dividends totaling $6.615/share or 3.167% in respect to initial purchase. However
both of these dividends were collected before the start of our managing of the portfolio and will
be excluded from yearly performance indicators.
Rationale for Selling
CEO was voted as a sell by this managing class on 11/18/13 for a number of reasons. Primarily
risk was a big factor in considering the performance and equity that was invested into this
position. After observing a YOY decrease in production yield in China and large increases in
capital expenditure for low returns in revenue we felt that the decision to sell was justified. CEO
was sold at a price of 205.76 which resulted in a yearly performance loss of -1.9% on the
position.
(Investor Note: It is worth noting that shortly after our decision to sell the position the stock fell
approx. 8.5% by 12/30/13 and is currently trading 22% below or sell price.)

24. 24
CST Brands Inc. (CST)
Company Overview: (www.cstbrands.com)
CST Brands was formed as "an independent spin off company" from Valero on May 1, 2013
(CST Brands, 2014).
CST Brands Inc., Texas based company, is the largest independent retailer of transportation fuels
and convenience goods in North America. The company sells motor fuel under such brands as
the Valero, Diamond Shamrock and Ultramar, and convenience merchandise under the Fresh
Choices, U Force, Cibolo Mountain, FC and Flavors2Go brands in the U.S. and eastern Canada.
In Canada, CST Brands sells their own line of coffee and pastries called Transit Café. Among
other offerings are heating oil to residential customers, and heating oil and motor fuel to small
commercial customers (Yahoo Finance, 2014). CST Brands also provides such products and
services as air/water/vacuum services, car wash, lottery, money orders, access to automated teller
machines as well as video and game rentals. Moreover, CST Company operates as a Subway and
Country Style franchisee serving food.
CST Brands offers convenience merchandise products and services in about 1,036 convenience
stores strategically placed in the growing markets of Arkansas, Arizona, California, Colorado,
Louisiana, New Mexico, Oklahoma, Texas, and Wyoming; 846 convenience stores,
dealers/agents and card locks in New Brunswick, Newfoundland and Labrador, Nova Scotia,
Ontario, Prince Edward Island, and Québec (Yahoo Finance, 2014). In 2012 more than 60% of
CST Company’s U.S. stores were located in Texas; and in 2013 they expanded to 15 new Corner
Stores in the US and 8 in Canada (CST Brands, 2014).
Company's focus on product diversification ranging from motor fuels to convenience
merchandise under numerous brand names and positive customer experience as its focal point
has made CST brands stand out in the specialty retail industry. In 2012 and 2013 CST Brands
was the second-largest publicly traded fuel retailer in the US.
Stock Analysis
CST's Market Cap is currently around $2.43 billion. Its stock is traded on the New York Stock
Exchange (NYSE) under Ticker: CST. CST Brands operates in Services sector and Specialty
Retail industry. CST is consumer cyclical, small value stock. P/E(ttm): 16.9. Forward P/E: 14.86.
Stock pays quarterly dividend rate of $0.062, or annual rate of $.25. CST's Beta is 1.597. CST
had outperformed S&P 500 in terms of earnings yields by 0.3% (CST 5.9 % ROR, S&P 500
5.6% according to Morningstar, 2014).
Rationale for Buying
As mentioned before CST Brands, Inc. was formed as a spin-off company from Valero on May
1st of 2013. The market price per share at that time was $29.92 and added the value of $1944.80
to the BAR Portfolio. Since the 65 shares of CST common stock were transferred to us as the
shareholders of its parent company, at that time, the stock was the value-add to the Global
Portfolio.

25. 25
The reasoning behind the decision to hold the stock in the Portfolio was the future growth
potential of the CST Brands, Inc. as one of the largest fuel retailers in the US with the diversified
portfolio of products ranging from motor fuel offered under various brands to convenience
merchandise. As a growing company CST was believed to bring the industry-equivalent returns
and promise to yield around 10% return over a 5-year period based on the Wall Street estimates.
CST pays out dividends, and is a good long-term investment; since CST is a cyclical stock it
thrives well when the economy is booming. Moreover, the stock diversifies the existent holdings
of the Global Portfolio.
Rationale for Selling
The class unanimously came to the conclusion to sell CST stock on April 7th 2014. The logic
behind selling the stock was based on the fact that the company is growing slowly since its spin-
off a year earlier while the market conditions have significantly improved. Since CST at a
current value $31.16 per share only yielded approximately 4.14% ROI over a year of holding the
stock, not including the dividends received, this was a decent return on a transferred investment
the class wanted to take advantage of. CST stock is not believed to yield a higher than 4-5%
return in the next 2 years.

26. 26
EMC Corporation (EMC)
Company Overview: (www.emc.com)
EMC Corporation develops, delivers, and supports information infrastructure and virtual
infrastructure technologies, solutions, and services. It operates in three segments: Information
Storage, Information Intelligence Group, and RSA Information Security. The company offers
enterprise storage systems and software deployed in storage area networks (SAN), networked
attached storage (NAS), unified storage combining NAS and SAN, object storage, and/or direct
attached storage environments, as well as provides backup and recovery, disaster recovery, and
archiving solutions.
It also offers information security solutions that are engineered to combine agile controls for
identity assurance, fraud detection, and data protection, as well as security analytics and GRC
capabilities; and expert consulting and advisory services. In addition, the company provides
information intelligence software, cloud solutions, and services, including EMC Documentum
xCP for building business and case management solutions; EMC Captiva for intelligent
enterprise capture; EMC Document Sciences for customer communications management; EMC
SourceOne Kazeon for e-discovery; the EMC Documentum platform for creating, managing, and
deploying business applications and solutions; and the EMC OnDemand private cloud
deployment model for enterprise-class applications.
Further, it offers VMware virtual and cloud infrastructure solutions that enable organizations to
aggregate multiple servers, storage infrastructure, and networks together into shared pools of
capacity that could be allocated to applications as needed. Additionally, the company provides
installation, professional, software and hardware maintenance, and training services. EMC
Corporation markets its products through various distribution channels, as well as directly in
North America, Latin America, Europe, the Middle East, South Africa, and the Asia Pacific
region. The company was founded in 1979 and is headquartered in Hopkinton, Massachusetts.
Stock Analysis
EMC's Market Cap is currently around $55.15 billion. Its stock is traded on the New York Stock
Exchange (NYSE) under Ticker: EMC. EMC operates in Technology sector while primarily
operating within the Data Storage industry.
Rationale for Buying
EMC was an inherited stock that remained in the portfolio from the last class before us. This
legacy stock was purchased by the last class at $25.39 on 11/6/12. In respect to our yearly
performance we will use an inherited value of $26.73 on 9/9/13.
Reasons for buying into this stock were not considered by this class as it was already contained
in the portfolio. Our approach as portfolio managers was to monitor the performance of this
company as the course was operating. Within the time of the initial purchase of EMC there was
one collected dividend totaling $0.10/share or 0.39% in respect to initial purchase. As this
dividend was collected before the start of our managing of the portfolio it will be excluded from
yearly performance indicators.

27. 27
Rationale for Selling
EMC was voted as a sell by this managing class on 3/10/14 for a number of reasons. Primarily
risk was a deciding factor in considering the performance and equity that was invested into this
position. After observing a period of poor performance by the stock (valued at one point to be an
approx. decrease of -13%) we observed a chance to make a small realized gain on the position
and took it. EMC was sold at a price of $27.20 which resulted in a yearly capital gain of 1.8% on
the position.
At the time of EMC’s sale there were two collected dividends totaling $0.20/share or 0.74% in
respect to our inherited value. Combining this value with our capital gain we see that our yearly
performance was 2.54% on EMC.
(Investor Note: It is worth noting at the time of this report that EMC experience a slight
valuation increase to max value of $28.18 but has pulled back to a value of $27.25)

28. 28
QualComm Incorporated (QCOM)
Company Overview: (www.qualcomm.com)
QualComm It operates in four segments: Qualcomm CDMA Technologies (QCT), Qualcomm
Technology Licensing (QTL), Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic
Initiatives (QSI).
The QCT segment develops and supplies integrated circuits and system software based on
CDMA, OFDMA, and other technologies for use in voice and data communications, networking,
application processing, multimedia, and global positioning system products.
The QWI segment provides fleet management, satellite- and terrestrial-based two-way wireless
information and position reporting, and other services; software and hardware to transportation
and logistics companies; content enablement services for the wireless industry; push-to-talk and
other software products and services for wireless network operators; and development, and other
services and related products of wireless communications technologies to government agencies
and their contractors, as well as builds and manages software applications that enable certain
mobile location-awareness and commerce services.
The QSI segment invests in early-stage companies that support the design and introduction of
new products and services, as well as holds a wireless spectrum license. The company operates
primarily in China, South Korea, Taiwan, and the United States. QUALCOMM Incorporated
was founded in 1985 and is headquartered in San Diego, California.
Stock Analysis
QCOM has been in the portfolio since the 2012-2013 class was managing. The stock was at
$69.30 at the start of our management and has steadily risen to nearly $79. Our 190 shares
We believe this is one of the strongest securities in our portfolio and will continue on a HOLD
position. We also believe QCOM's cash and investments position of $31.6 billion as of
December 2013 supports the planned increase in R&D investments, and an increase in dividend.

29. 29
United Technologies Corporation (UTX)
Company Overview: (www.utc.com)
UTC is a dynamic global conglomerate of five core business segments focused around the
industrial goods sector. Collectively, UTC offers technology products and services to the
building systems and aerospace industries worldwide.
Its Otis segment designs, manufactures, sells, and installs a range of passenger and freight
elevators, escalators, and moving walkways; modernization products to upgrade elevators and
escalators; and maintenance and repair services.
The UTC Climate, Controls, & Security segment provides heating, ventilating, air conditioning,
and refrigeration solutions, such as controls for residential, commercial, industrial, and
transportation applications. It also offers electronic security products, including intruder alarms,
access control systems, and video surveillance systems; and monitoring, response, and security
personnel services, as well as designs and manufactures a range of fire safety products
comprising specialty hazard detection and fixed suppression products, portable fire
extinguishers, fire detection and life safety systems, and other firefighting equipment.
Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and
general aviation markets, as well as provides fleet management services for commercial engines;
spare parts; and maintenance, repair, and overhaul services.
The UTC Aerospace Systems segment supplies aerospace products, including electric power
generation, management and distribution systems, flight control systems, engine control systems,
intelligence, surveillance and reconnaissance systems, engine components, environmental
control systems, fire protection and detection systems, propeller systems, aircraft nacelles, and
interior, actuation, landing and electronic systems; and aftermarket services.
Its Sikorsky segment manufactures military and commercial helicopters, as well as provides
aftermarket helicopter and aircraft parts and services.
Under the leadership of CEO, Louis Chenevert and CFO, Gregory Hayes, United Technologies
Corporation has been listed among Fortune 50’s most admired companies, employing more than
200 thousand workers globally.
UTC’s registered ticker is UTX, listed on the New York Stock Exchange. UTX’s market
capitalization is greater than $120billion. Investors have experienced over 28% annual growth on
principle investments for the previous five years (5yr average ESP). UTX continues to out-
perform the S&P500 year over year despite the slower than expected rebound of the global
economy.
UTC’s stellar performance can be attributed to its well-planned M&A activity, most recent being
the 2012 Goodrich acquisition which has helped bolster gross sales to nearly 63 billion in 2013.
In addition, UTC has proven successful implementation lean business concept yielding ever
greater operating profit margins on the income statement, which translate into free-cash flow for
their share repurchase program and a steady dividend yield to shareholders.

30. 30
Rationale for Buying
In the fall semester of 2013, the students of BAR510 unanimously voted to make a principal
investment in United Technologies stock. One hundred shares of UTX were purchased in the
first week of October, and added to the Global Portfolio at the price of $106.335 per share.
At the time of pitching the investment, students concluded the following; UTC is a dynamic
global company with proven historical performance currently yielding above-market returns,
paying a reasonable dividend, and holds minimal risk; the company is well positioned for
continued growth further improving annual returns to stockholders over the foreseeable future;
and buying UTX is equivalent to buying a diversified ETF thereby helping to further diversify
the BAR portfolio across additional market sectors.
As the 2014 spring semester draws to an end, the share price of UTX stock continues to reach
new all-time highs. Now approaching $120 per share, the principal investment of $106,335 has
generated an unrealized gain of nearly $12,000. Factoring in the yield on received dividends,
return on investment is approximately 13.5% in roughly seven months’ time.

31. 31
Valero Energy Corporation (VLO)
Company Overview: (www.valero.com)
Valero Energy Corporation operates as an independent petroleum refining and marketing
company in the United States, Canada, the Caribbean, the United Kingdom, and Ireland. It
operates through two segments, Refining and Ethanol.
The Refining segment is involved in refining, wholesale marketing, product supply and
distribution, and transportation operations. This segment produces conventional and premium
gasoline, gasoline meeting the specifications of the California Air Resources Board (CARB),
reformulated gasoline blend stock for oxygenate blending, diesel fuels, low-sulfur and ultra-low-
sulfur diesel fuels, CARB diesel fuel, distillates, jet fuels, asphalts, petrochemicals, lubricants,
and other refined products.
The Ethanol segment produces ethanol and distillers grains. The company markets its refined
products through bulk and rack marketing network; and through approximately 7,400 outlets
under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco names. As of
December 31, 2013, it owned 16 petroleum refineries with a combined throughput capacity of
approximately 3.1 million barrels per day.
Valero Energy Corporation also owns and operates 10 ethanol plants with a combined ethanol
production capacity of approximately 1.2 billion gallons per year. The company was formerly
known as Valero Refining and Marketing Company and changed its name to Valero Energy
Corporation in August 1997. Valero Energy Corporation was founded in 1955 and is based in
San Antonio, Texas.
Stock Analysis
VLO’s Market Cap is currently around $27.64 billion. Its stock is traded on the New York Stock
Exchange (NYSE) under ticker: VLO. VLO operates in the Basic Materials sector while
operating within the Oil and Gas Refining industry. VLO has a P/E ratio of 10.44. Forward P/E:
8.55. VLO pays a quarterly dividend rate of $0.25, or annual rate of $1.00 with a yield of 1.0%
with a current beta of 2.5. The stock has gained $8,962.20 or 41.87% throughout the two
semesters that we have held onto it.
Rationale for Buying
VLO was an inherited stock that remained in the portfolio from the BAR 510/511 class in the
2011-2012 academic year. We currently hold 585 shares that hold a market value of $30,367.35.
We did not know that we had the stock until March 24th
2014. Due to this the stock wasn’t
properly followed and regulated. The former class purchased this stock at $25.25 on 3/6/12. We
inherited this stock on 9/9/13 at a price of $36.59.
Reasons for buying into this stock were not considered by this class as it was already contained
in the portfolio. Due to learning about our position it was not maintained properly.

32. 32
Apple Inc. (AAPL)
Company Overview: (www.apple.com)
Apple Inc. and its wholly-owned subsidiaries design, manufacture, and market mobile
communication and media devices, personal computers, and portable digital music players
worldwide. It also sells software, services, peripherals, networking solutions, and third-party
digital content and applications related to its products. Apple Inc. was founded in 1977 and is
headquartered in Cupertino, California.
Rationale for Buying
Apple was an inherited stock that our team elected to hold due to new product releases of the
iPhone 5S, iPhone 5C and iPad mini during the Q4 holiday rush which projected a strong sales
forecast. The team also saw opportunity in the Chinese market based on speculation surrounding
a potential partnership with Chinese communication giant China Mobile, which would open
Apple products up to 760 million new consumers.
Apple has rewarded the group with positive gain and the company is still holding onto a large
cash balance of over $150 billion, which is opportunity for dividends, as advocated by
shareholder Carl Icahn. Apple saw positive gain that reached as high as 570.09 on Dec. 23rd
2013, but saw a steep decline to 499.78 following a weak Q4 report on Jan. 27th 2014, proving
high volatility in the stock. The stock has rebounded and is currently trading well above the
506.17 purchase price.

33. 33
3M Corporation (MMM)
Company Overview: (www.3m.com)
3M operates as a diversified technology company worldwide employing more than 88,000
thousand employees in over 70 countries. 3M is an industrial conglomerate and its business is
comprised of five segments; Industrial, Safety and Graphics, Electronic and Energy, Health Care,
and Consumer. The company serves automotive, electronics and energy, appliance, paper and
printing, packaging, food and beverage, construction, clinics and hospitals, pharmaceuticals,
dental and orthodontic practitioners, food manufacturing and testing, retail, home improvement,
building maintenance, and other markets.
3M's Industrial segment offers tapes; coated, nonwoven, and bonded abrasives; adhesives;
ceramics; sealants; specialty materials; filtration products; closure systems for personal hygiene
products; acoustic systems; automotive components; abrasion-resistant films; structural
adhesives; and paint finishing and detailing products.
The company's Safety and Graphics segment provides personal protection products; traffic safety
and security products; commercial graphics systems; commercial cleaning and protection
products; floor matting; and roofing granules.
The Electronics and Energy segment of 3M offers optical films for electronic displays;
packaging and interconnection devices; insulating and splicing solutions; telecommunications
and electrical industries; touch screens and touch monitors; renewable energy components; and
infrastructure protection products.
3M's Health Care segment provides medical and surgical supplies; drug delivery and health
information systems; and dental, orthodontic, and food safety products, as well as skin health and
infection prevention products.
Its Consumer segment offers sponges, scouring pads, cloths, consumer and office tapes,
repositionable notes, indexing systems, construction and home improvement products, home care
products, protective material products, and consumer and office tapes and adhesives.
Underlying all of 3M's business segments is a sustainability mission focused on social
responsibility, improved efficiency, and waste reduction in the manufacture of 3M products. This
mission has led 3M to continuously innovate products that eliminate or reduce waste. 3M is
categorized as a 'Green Company' for its commitment to improving the environment and society.
For its innovation and continued growth, 3M has been recognized as one of Top 20 Best
Companies for Leadership as well as one of the World's Most Admired Companies 2012 list.
3M's success is attributed to strong organic sales growth, continuous innovation to meet market
needs, successful acquisitions, reduction in cost of supplies and materials partially due to product
innovation, and reduction in cost of production. In the last year, 3M consolidated its 8 segments
into five well defined business segments to better focus on its core competencies and greatest
market opportunities resulting in a 3.4% overall increase in sales, an operating margin of 20% in
all segments, and free cash flow conversion of 89%. The increases in profits were returned to
investors in the form of dividends and a stock repurchase program.

34. 34
Rationale for Buying
In the fall semester of 2013, the students of BAR510 voted to make a principal investment in 3M
stock. One hundred fifty shares of MMM were purchased on November 11th
and added to the
Green Portfolio at the price of $128.33 per share.
3M was an attractive investment to the class because it is a company that is diversified in its
product offering as well as diversified geographically and demographically making it a defensive
stock in a volatile economic environment. Further, along with strong organic sales growth in the
last five years, 3M has a long standing history of innovating to create market demand and a
strong understanding of its core competencies leading to a well defined and focused strategy.
Lastly, 3M has a five year stock repurchase program anticipated to increase the company stock
value and also offers competitive dividends.
As present, the share price of MMM stock is $135.86 per share. The principal investment of
$19,250.99 has generated an unrealized gain of $1,128.02. Factoring in the yield on received
dividends, return on investment is approximately 6.36% in roughly six months’ time. It is
important to note that given the volatility in the stock market, the class had placed a ceiling of
$140 per share on 3M stock; a price that 3M did reach during Winter Break. Unfortunately, upon
returning in Spring Semester, we were alerted that the stock had not been sold by the broker. If
the stock had been sold as the student's had desired, 3M would have yielded a gain of 9.508%
which is a return higher than the market. At this time, we believe that 3M continues to have long
term growth potential and was retained as part of our portfolio.

35. 35
Hilton Worldwide Holdings Inc. (HLT)
Company Overview: (www.hilton.com)
Hilton Worldwide Holdings Inc., a hospitality company, is engaged in the ownership, leasing,
management, development, and franchising of hotels, resorts, and timeshare properties
worldwide. The company operates hotels under the brand names of Hilton Hotels & Resorts,
Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy
Suites Hotels, Hilton Garden Inn, Hampton Inn, Homewood Suites by Hilton, and Home2 Suites
by Hilton; and timeshare properties under the Hilton Grand Vacations brand.
It has approximately 4,115 hotels, resorts, and timeshare properties comprising 678,630 rooms
in 91 countries and territories. The company was founded in 1919 and is headquartered in
McLean, Virginia.
Rationale for Buying
The $2.35 Billion initial public offering of Hilton during 4th
quarter 2013, spear headed by the
Blackstone Group LP (BX), is the largest hotel IPO ever. A new management team focused on
converting the business model from property management to brand franchising offers
opportunity for net income growth while infusing cash flow through the sale of high value
properties. A recovering business and vacation travel market saw a national increase in per room
value, boosting rev PAR 5.4% in 2013 with an expected growth of 6.2% in 2014 (PWC). Hilton
also has opportunity to implement green technologies to improve their energy efficiency, which
will impact their bottom line.
Hilton was purchased as part of a long term growth strategy and is recommended to be a hold
through 2014, capitalizing on the operation improvements and growing lodging market. Portfolio
managers should consider selling shares in parallel with the management group, Blackstone
Group LP, as they look to optimize their value.

36. 36
NextEra Energy, Inc. (NEE)
Company Overview: (www.nexteraenergy.com)
NextEra Energy, Inc. (NYSE: NEE) is a leading clean-energy company with 2012 consolidated
revenues of approximately $14.3 billion, more than 42,000 megawatts (MW) of generating
capacity, and nearly 15,000 employees in 26 states and Canada as of year-end 2012.
Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are Florida Power &
Light Company (FPL), which serves approximately 4.6 million customer accounts in Florida and
is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy
Resources, LLC which, together with its affiliated entities (NextEra Energy Resources), is the
largest generator in North America of renewable energy from the wind and sun. Through its
subsidiaries, NextEra Energy also generates clean, emissions-free electricity from eight
commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin.
In the five years through 2012, NextEra Energy has invested more than $31 billion in capital
projects. These investments, in turn, delivered jobs that are a key ingredient for economic growth
and prosperity. NextEra Energy also makes tax payments to counties and municipalities around
the nation that help fund local needs such as education, health care and emergency services.
Rationale for Buying
In the fall semester of 2013, the students of BAR510 voted to make a principal investment in
NEE stock. One hundred and twenty five shares of NEE were purchased after voting on
November 25th
and added to the Green Portfolio at the price of $85.07 per share.
NEE was an attractive investment to the class because it is a company that has shown high
sustainability over the long period of time. Also the volatility of this stock is very low keeping it
at stable state as compared to market. It is a green energy company and has very well diversified
itself into subset organizations under the big umbrella. Upon doing the statistical analysis of the
stock prices over past five years, the stock has shown a steady growth year after year and that too
more than the market benchmark every time. The low beta value and decent dividend value make
this stock more favorable. Lastly, their business model perfectly aligns with Barney’s mission of
promoting Green so NEE became a feather in the cap of our Green Portfolio.
As present, the share price of NEE stock is $96.11 per share. The principal investment of
$10,633.75 has generated an unrealized gain of $1,462.50. Factoring in the yield on received
dividends, return on investment is approximately 13.75% in roughly six months period of time
which is a decent higher than the market return. At this time, we still believe that NEE continues
to have long term growth potential with the same rational and hence retained as part of our
portfolio.