From: Mike Lorrey (mlorrey@datamann.com)
Date: Mon Mar 18 2002 - 07:55:31 MST
Well, I imagine the five year old girl probably bought stock in
companies whose products she used and liked. This strategy is one used
and advocated by Warren Buffet, so it can't be all bad. Of course, a
year period is not really sufficient. As any analyst will tell you, one
should always invest for the long term. One year is decidedly quite
short term. Going by decades, there is no other investment you can make
outside stocks which will always provide positive returns (or higher
ones).
steve wrote:
>
> http://www.guardian.co.uk/Archive/Article/0,4273,4373847,00.html
>
> A story that's both amusing and interesting. It involves an experiment in
> which a professional investment analyst, an astrologer and a five year old
> girl were each given a notional sum to invest in the stockmarket. After a
> year the five year old had a score of plus 5.8%, the astrologer had minus
> 6.2% and the analyst minus 46.2 (the stock market as a whole had minus 16%.
>
> Quite apart from giving us the opportunity to laugh at the discomfiture of
> the the analyst - schadenfreude is wonderful - this does raise yet again the
> interesting question of prdicting the outcome of complex systems. Steve
> Davies.
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