Scott Adams on Managed Funds

[BigMoneyJim]

http://dilbertblog.typepad.com/the_dilbert_blog/2006/11/the_one_problem.html

There are about 10,000 stocks. But there are 20,000 managed stock funds, the majority of which can’t 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.

 

[mickeyd]

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.

 

[free4now]

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.

 

[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.

 

[BigMoneyJim]

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.

 

[LEX]

That reminds me, I need to get something for my sister in laws toddlers before I visit her during the holidays.

 

[BUM]

Anyone old enough to remember the Stock Pickin' Chicken?