| | | Re: it was that "play portfolios" using imaginary money were something you never did.
It was back in 1999 or 2000 where CNBC had sixth graders competing against money professionals and actually beating them. The kids simply picked dot com whomever while money managers had a fiduciary duty to invest responsibly.
I remember when Warren Buffett sold MCD I think it was, and my daughter who was 8 or 9 said why would anyone sell MCD?
The kids turned out with the correct call, but who is going to invest their money with a sixth grader?
There's no risk with play money, there's no emotion with play money, and if there is one thing that is prevalent in the investing world, it's emotion.
Mikee over on SA, back in the day, asked for 10 of us to put together a 50 holding portfolio for a buy and hold strategy. His DG 50 experiment. I participated as a courtesy but never again. His rule was no selling, no portfolio management, simply buy and hold. That's not how I manage a portfolio. So the exercise was useless to me.
A lot of the companies selected, people also clearly stated they wouldn't buy at the time due to valuation. So, a number of those companies would not show up if dealing in real life scenario. Mike will argue he put real money to work, but it was only $25K. No way he was going to do $500K or $1MM into his DG 50.
So, showing how a real portfolio is managed is the only way to go. You get to see the strength and weaknesses of the way the portfolio is managed, you get to see the correct calls and the mistakes, and we all make mistakes. Dealing in reality is the only way for me to truly learn anything about portfolio management.
Others may differ, and that's fine by me, but this is how I roll. |
|
