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Scott Adams on Managed Funds
Old 11-30-2006, 07:07 PM   #1
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Scott Adams on Managed Funds

http://dilbertblog.typepad.com/the_d...e_problem.html

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There are about 10,000 stocks. But there are 20,000 managed stock funds, the majority of which canít beat a stock-picking monkey with a dartboard. You have a 1-in-10,000 chance of randomly picking the best stock in the world and a 1-in-20,000 chance of randomly picking the best stock expert.
The article is not about finance, but this one example on the problem of finding someone smarter than yourself on a particular topic was not only funny but insightful.
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Re: Scott Adams on Managed Funds
Old 12-01-2006, 04:17 PM   #2
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Re: Scott Adams on Managed Funds

I seldom consult with cartoon characters when making my investment decisions, but I might see what Dilbert had to say about my selections because I like his tie.
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Re: Scott Adams on Managed Funds
Old 12-01-2006, 07:24 PM   #3
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Re: Scott Adams on Managed Funds

The problem with finding the smartest people to make decisions is getting your interests aligned with those of the smart people. Often the best decision a smart person can make is to plunder the resources of those who are not as smart. Which brings us back to money managers.
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Re: Scott Adams on Managed Funds
Old 12-01-2006, 07:47 PM   #4
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Re: Scott Adams on Managed Funds

I'm looking into getting a monkey to pick my stocks. That should solve this problem. And don't try to tell me about piano playing elephants. I'm teaching the monkey to play the piano too.
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Re: Scott Adams on Managed Funds
Old 12-01-2006, 09:20 PM   #5
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Re: Scott Adams on Managed Funds

Quote:
Originally Posted by sgeeeee
I'm looking into getting a monkey to pick my stocks. That should solve this problem. And don't try to tell me about piano playing elephants. I'm teaching the monkey to play the piano too.
You aren't thinking efficiently or frugally. Get a zoo membership (so you don't have to repeatedly pay admission), make up a large stock grid poster and entice the zoo monkey to throw poo at your chart.

It's much too much trouble to maintain your own monkey.
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Re: Scott Adams on Managed Funds
Old 12-01-2006, 10:30 PM   #6
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Re: Scott Adams on Managed Funds

That reminds me, I need to get something for my sister in laws toddlers before I visit her during the holidays.
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Re: Scott Adams on Managed Funds
Old 12-02-2006, 04:46 PM   #7
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Re: Scott Adams on Managed Funds



Anyone old enough to remember the Stock Pickin' Chicken?


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