16-Year-Old 'Wizard' Wins Investing Competition 2 Years In A Row

Adnan Zavier Farkhouri, a 16-year-old student at Groves High School in Detroit, proved that he knows a thing or two about investments.

Farkhouri won the Bloomfield Hills Financial Stock-to-Scholarship Challenge for the second straight year by creating a portfolio of stocks that surged 42.5 percent throughout the three-month contest.

Farkhouri, who aspires to one day be an investment banker, edged out thousands of students in the Detroit area and took home the top prize of $5,000 toward a college education.

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The winner told the Detroit Free Press that he is bullish on 3 ETFS: 1) the SPDR Dow Jones Industrial Average ETF DIA, which tracks the performance of the Dow Jones Industrial Average; 2) the SPDR S&P 500 ETF Trust SPY, which tracks the performance of the S&P 500 index; and 3) the PowerShares QQQ Trust, Series 1 (ETF) QQQ, which tracks the performance of the Nasdaq-100 Index.

Farkhouri continued that these three ETFs provide a "tri-diversified exposure" to the industrial and technology sectors in addition to the overall market. He added that the ETFs also provide a "higher exposure to some of the more safe and less risky established businesses across all sectors."

Farkhouri also said he took advantage of gold mining ETFs to win the challenge. This offered exposure to higher risk assets, which worked in his favor.