Author Topic: A Cat beats professional investors  (Read 7108 times)

Honest Abe

  • Bristles
  • ***
  • Posts: 376
  • Emancipate Yourself from Mental Slavery

grantmeaname

  • Magnum Stache
  • ******
  • Posts: 4815
  • Age: 27
  • Location: NYC
  • Cast me away from yesterday's things
Re: A Cat beats professional investors
« Reply #1 on: January 14, 2013, 08:51:46 PM »
Best comment ever:

"And just like that fund managers are off to get their own cat."

Richard3

  • Bristles
  • ***
  • Posts: 292
Re: A Cat beats professional investors
« Reply #2 on: January 14, 2013, 08:55:19 PM »
If you locked the cat in a box would that harness the power of quantum theory and make the results even more impressive?

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28030
  • Age: -999
  • Location: Seattle, WA
Re: A Cat beats professional investors
« Reply #3 on: January 14, 2013, 09:37:26 PM »
Repeating the old monkeys throwing darts experiment.  I love it.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

smedleyb

  • Bristles
  • ***
  • Posts: 434
Re: A Cat beats professional investors
« Reply #4 on: January 15, 2013, 07:15:16 AM »

DoubleDown

  • Handlebar Stache
  • *****
  • Posts: 1989
Re: A Cat beats professional investors
« Reply #5 on: January 15, 2013, 08:15:05 AM »
Repeating the old monkeys throwing darts experiment.  I love it.

I think that's very sad they made those old monkeys throw darts. They should have been able to retire from that kind of dangerous work when they were younger. Poor monkeys.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28030
  • Age: -999
  • Location: Seattle, WA
Re: A Cat beats professional investors
« Reply #6 on: January 15, 2013, 08:45:50 AM »
I think that's very sad they made those old monkeys throw darts. They should have been able to retire from that kind of dangerous work when they were younger. Poor monkeys.

Unfortunately they have to work until they die due to their poor choices.  They should have saved some of their bananas aside, instead of mindlessly wasting them.  They didn't read enough Mr. Monkey Mustache when they were younger.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

DebtDerp

  • Stubble
  • **
  • Posts: 155
  • Age: 31
  • Location: Seattle
Cats are better at picking stocks than professionals
« Reply #7 on: January 15, 2013, 11:31:16 AM »
http://www.guardian.co.uk/money/2013/jan/13/investments-stock-picking

Just goes to show you that you can't try to pick stocks and time the market. I wish more people would realize this instead of losing their savings to the market. I learned the hard way a few years back.

[MOD EDIT: Merged into existing topic.]

EDIT: Didn't see the original post, thanks.
« Last Edit: January 15, 2013, 12:32:41 PM by DebtDerp »

cbr shadow

  • Bristles
  • ***
  • Posts: 471
Re: Cats are better at picking stocks than professionals
« Reply #8 on: January 15, 2013, 11:41:41 AM »
but I'm really lucky.... ;)

DoubleDown

  • Handlebar Stache
  • *****
  • Posts: 1989
Re: A Cat beats professional investors
« Reply #9 on: January 15, 2013, 12:12:09 PM »
Unfortunately they have to work until they die due to their poor choices.  They should have saved some of their bananas aside, instead of mindlessly wasting them.  They didn't read enough Mr. Monkey Mustache when they were younger.

Oh that does change things. Stupid, short-sighted, non-saving monkeys!

And way to go, Investor Cats. You've got 'cattitude'. Or Cat-assity. I'd like to invest in your mutual funds.

k9

  • Stubble
  • **
  • Posts: 241
  • Age: 39
Re: A Cat beats professional investors
« Reply #10 on: January 16, 2013, 11:23:15 AM »
Unfortunately they have to work until they die due to their poor choices.  They should have saved some of their bananas aside, instead of mindlessly wasting them.  They didn't read enough Mr. Monkey Mustache when they were younger.

LOL, very nice

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1181
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
Re: A Cat beats professional investors
« Reply #11 on: January 16, 2013, 03:26:17 PM »
I liked the "but can cats charge you 2%?" Comment. Very true.

Yet I need them. The trading, the analysts, the market timers, the day traders, the hedge funds, they all provide this thing called the market. My index funds would not work without them. I need non-mustashians to fund the bonuses, the lunches, the exorbitant salaries, and to pay those stupid return-destroying fees.

This is the funny thing about bogle and asset allocation. Once anybody knows, it's their interest to not tell anyone else. Pretty much everybody in the whole financial industry is highly incentivised to not tell anyone about bogle.

So, shuuuush!

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4047
Re: A Cat beats professional investors
« Reply #12 on: January 16, 2013, 09:34:13 PM »
I can't help but wonder, though, if there is not a little (or even more than a little) selection bias at work.  If the investors beat the cat (and many sets of potential investors might), there would be no news story.  So suppose they start with a cat and 100 investors.  90 of the investors beat the cat, 10 don't.  Use the 10 worst investors, and hey, you have a story!  Not that I would ever question the honesty of our press, oh heavens no :-)

Mr Mark

  • Handlebar Stache
  • *****
  • Posts: 1181
  • Location: Planet Earth
  • Achieved Financial Independence summer 2014. RE'18
Re: A Cat beats professional investors
« Reply #13 on: January 16, 2013, 11:33:16 PM »
I can't help but wonder, though, if there is not a little (or even more than a little) selection bias at work.  If the investors beat the cat (and many sets of potential investors might), there would be no news story.  So suppose they start with a cat and 100 investors.  90 of the investors beat the cat, 10 don't.  Use the 10 worst investors, and hey, you have a story!  Not that I would ever question the honesty of our press, oh heavens no :-)

I like the way you think James!

Jamesqf

  • Magnum Stache
  • ******
  • Posts: 4047
Re: A Cat beats professional investors
« Reply #14 on: January 17, 2013, 01:04:47 PM »
And of course we don't know how many cats they started with, either.  Orlando did well, but how about Socks, Felix, Greymalkin, and all the other cats who lost their catnip mice in the market: do we ever hear about them?

SugarMountain

  • Pencil Stache
  • ****
  • Posts: 706
Re: A Cat beats professional investors
« Reply #15 on: January 24, 2013, 04:57:29 PM »
I can't help but wonder, though, if there is not a little (or even more than a little) selection bias at work.  If the investors beat the cat (and many sets of potential investors might), there would be no news story.  So suppose they start with a cat and 100 investors.  90 of the investors beat the cat, 10 don't.  Use the 10 worst investors, and hey, you have a story!  Not that I would ever question the honesty of our press, oh heavens no :-)

The opposite often happens, where the guys with outsized returns get massively rewarded, when really they just got lucky in a given year.  That's why they take inappropriate risks. 

mustachecat

  • Bristles
  • ***
  • Posts: 398
Re: A Cat beats professional investors
« Reply #16 on: January 25, 2013, 06:43:44 AM »
Welp, time to make a grid of numbers and let my cats have at it.

That is the takeaway from this story, right? ;)

DocCyane

  • Bristles
  • ***
  • Posts: 390
  • Location: USA
  • Keep going. You're doing just fine.
Re: A Cat beats professional investors
« Reply #17 on: January 26, 2013, 06:15:30 AM »
My cat told me to sell my Netflix shares a few months ago. I need a new cat.

the fixer

  • Handlebar Stache
  • *****
  • Posts: 1037
  • Location: Seattle, WA
Re: A Cat beats professional investors
« Reply #18 on: January 30, 2013, 08:05:03 PM »
The media has been hyping this and not telling the whole story. The cat still did worse than a diversified index fund, it's just that his competition absolutely sucked. http://www.cbsnews.com/8301-505123_162-57564608/invest-like-a-dog-not-a-cat/

k9

  • Stubble
  • **
  • Posts: 241
  • Age: 39
Re: A Cat beats professional investors
« Reply #19 on: February 03, 2013, 10:41:17 AM »
And of course we don't know how many cats they started with, either.  Orlando did well, but how about Socks, Felix, Greymalkin, and all the other cats who lost their catnip mice in the market: do we ever hear about them?
That is very true. But hey, let's make fun of fund managers anyway ! ;)