Find several comments regarding investments

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Wilfred and Ariane have been getting tired of listening to their neighbour Harpreet bragging about his investing prowess. Six months ago Harpreet put his entire investment portfolio of $110,000 into the stock of a pharmaceutical company he'd heard about that morning on BNN Bloomberg. Six months later, Harpreet's portfolio was worth $223,000, meaning he had more than doubled his investment. Between watching financial news and hearing Harpreet going on and on and on about how he did so well in investing, Ariane & Wilfred are now convinced that their financial future lies in stocks. They'd like to see significant growth in their financial assets over the next few years. Ariane does not think that diversification is useful for anyone with knowledge and skill; in fact she believes that diversification is for people that are unable to make their own decisions. Wilfred has heard that bonds and mutual funds can be part of a good strategy for diversification, but he believes that bond returns are low, and that mutual fund returns are not much better. He is very open to stock tips from co-workers or financial industry people, and he will reluctantly take stock tips from Harpreet as well.

Question: Wilfred and Ariane have made several comments regarding investments. Discuss their thoughts regarding:

- Diversification not being useful

- Not wanting to include bonds or mutual funds in their portfolio

- Stock tips from co-workers as a source of investment information

Reference no: EM133114651

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