Cowboy Caleb the liberal arts, grown-up stuff & random mischief

Random choices are better

YOU may have heard the story that a monkey hitting computer keys at random will eventually produce a great novel.Did you know that the same monkey selecting stocks randomly will ALWAYS produce average returns that beat the experts?

* How can?

There are two reasons for this incredible result.

First, experts cost a fortune while the monkey is paid peanuts.

Second, the monkey picks stocks randomly then holds them, while managed funds trade continuously in a futile effort to find the best stocks. This increases the taxes and brokerage commissions for managed funds.These costs are invisible to you since funds decline to report them. But they take a big bite out of your returns.

Dr Money’s latest column.

you are a monkey.

you are a hairy assed baboon

I meant, you are a monkey in the sense that you are not an expert yet you picked a stock which is doing well. I was in no way being juvenile and am extremely hurt at the juvenile name you called me. I think you need counselling, like the bus driver.

you are right on that. my mom just gave me 5K to start another portfolio and I’m going to use this tactic to grow it to 10K. Heh.

I think this only applies to monkey vs. fund managers. I am certain an educated individual can do better for him/herself. Fund managers are not to be trusted.