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Consider three investors. Bryant is a 2 5 - year - old young professional, employed in a major city in the northeast. Since joining the
Consider three investors.
Bryant is a yearold young professional, employed in a major city in the northeast. Since joining the workforce three years ago, he has been contributing as much money as possible to his retirement accounts, which is invested in a diverse set of index funds. An avid fan of Benjamin Graham's "The Intelligent Investor", he has decided to consider a few individual stocks of companies with good and stable longterm prospects as well as a great management.
Nicole is years old, and a few months ago, she retired from her wellpaying job after aggressively saving and investing her money prudently for much of her life. While she could go back to work if necessary, she prefers her financial independence. In order to maintain a steady cashflow, her portfolio is heavily geared towards highyielding stocks, allowing her and her family to live on dividend payments for the most part. Aware of the downturn of General Electric and their dividend cut, she focuses on companies from which she expects solid and steady dividend growth.
Peter is in his mid s He did not start a wellpaying job until two years ago, and therefore, he is behind on his retirement savings. To make up for lost time, he is contributing the maximum allowed to his individual retirement account IRA which is invested in market ETFs. Additionally, he sets aside $ every year for the next ten years for risky highgrowth investments.
Following up on our group exercise in class, discuss if the stocks of Amazon AMZN Target TGT General Motors GM and Tesla TSLA are suitable investments for these three investors. Explain why or why not.
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