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Monkeys Are Better Stockpickers Than You'd Think

TedTed
in Fund Discussions
FYI: A blindfolded monkey throwing darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by experts," Burton Malkiel famously argued in his classic 1973 book, A Random Walk Down Wall Street.
Regards,
Ted
http://online.barrons.com/news/articles/SB50001424053111903927604579634603846777722#printMode

Comments

  • davidrmorandavidrmoran
    The equal-weight argument. Have myself been weighing RSP vs PKW and SCHD.
  • JohnChisum
    I remember this tale from the 80's. Monkeys or darts, it's the same thing. Barron's needed some filler story.
  • CharlesCharles
    I believe in literate monkeys =).
  • heezsafe
    I cannot believe no mention was made of the Motley Fool Chimp Portfolio of the late go-go 1990s--- the first and only experiment (to my knowledge) that proved, empirically, Burton Malkiel was RIGHT! At the end of the trial--- how long did they run it? a year?--- the TR of the "fund", composed of stocks dart-selected by their chimp, exceeded the TR of over 50% of all domestic stock MFs in America! It was fascinating, among the best PR gimmicks of any start-up company ever.

    Does anyone here remember what the Motley Fool portfolio was called?
  • CharlesCharles
    Hi heezsafe. I don't recall. I did once read Motley Fool and listen to Saturday radio program, years ago. Now, the site overflows with pop-ups, ads, teaser articles to paid services, etc. Rarely visit it any more.
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