A Cat beats professional investors

[Honest Abe]

I CAN HAZ COMPOWND INTRESTS?

http://www.npr.org/blogs/money/2013/01/14/169326326/housecat-beats-investors-in-stock-market-challenge

[grantmeaname]

Best comment ever:

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

[Richard3]

If you locked the cat in a box would that harness the power of quantum theory and make the results even more impressive?

[arebelspy]

Repeating the old monkeys throwing darts experiment.  I love it.

[smedleyb]

I guess Orlando's stock picking prowess would explain this:

http://articles.marketwatch.com/2013-01-14/finance/36322923_1_vanguard-chairman-vanguard-investor-jack-bogle

[DoubleDown]

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]

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.

[DebtDerp]

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.

[cbr shadow]

but I'm really lucky.... ;)

[DoubleDown]

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]

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]

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]

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]

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]

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]

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]

Welp, time to make a grid of numbers and let my cats have at it.

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

[DocCyane]

My cat told me to sell my Netflix shares a few months ago. I need a new cat.

[the fixer]

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]

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 ! ;)