The Monkeys, The Managers and The Market
Since this thread looks abandoned, I thought I'd use the topic to post this test of Burton Malkiel's claim that a blindfolded monkey can pick stocks better than professional managers.
So I designed this test of two portfolios. Each gets $100,000 in play money, equally divided between ten positions.
One is a random selection of ten stocks. The other is a selection of ten large and/or influential mutual funds.
The Monkeys
I used a random portfolio generator here to generate a list of stocks:
stockg.com
From this my only screens were to weed out companies trading under $15 a share or with market caps under $100 million.
Then I plugged them into an SI portfolio at the 11/22/2000 closing price. Buyandhold.com's $10 flat rate was considered as commission, meaning $1 per company. Partial shares were used in the portfolio, when helps the equal weighting.
Here is the result:
siliconinvestor.com
The Managers
I compiled a set of ten major mutual funds, including several biggies and others whose renown interested me. I plugged them into their own portfolio, ignoring loads and commissions.
Here is the result:
siliconinvestor.com
The Market
To help compare the two, I included .001 shares of three stock indexes (QQQ, SPY and VITSX), along with one bond index (VBTIX) to see how if group beats the market.
Start your engines, boys. Let's see who performs best over the long haul.
Note: These are teaching portfolios only, not recommendations. Buy and sell stocks or funds at your own risk. I reserve the right to hold long or short positions in any of these at any time. I also cannot guarantee the accuracy of any information. Please don't make any investment decisions based on anything coming from my keyboard. Do your own homework. |
