Throughout the week, I run across articles written by other people that may be of interest to you. This week, there is one article I’d like to highlight on how monkeys just may do a better job than professionals when it comes to picking stocks.
Have you ever read the news story that mentioned blindfolded monkeys throwing darts at the stock section of a newspaper could do a better job picking stocks than professionals? The reality is that monkeys likely would be better at picking stocks because there are way more small company stocks than large company stocks. And historically small company stocks have outperformed their large company counterparts. However, even with that being the case, it is explained in an article by Dimensional Fund Advisors, titled Quit Monkeying Around, that haphazardly selecting stocks by the toss of a dart is not an efficient or reliable way to invest.
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