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Each team invested a notional £5,000 in five companies from the FTSE All-Share index at the start of the year. After every three months, they could exchange any stocks, replacing them with others from the index.
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By the end of September the professionals had generated £497 of profit compared with £292 managed by Orlando. But an unexpected turnaround in the final quarter has resulted in the cat's portfolio increasing by an average of 4.2% to end the year at £5,542.60, compared with the professionals' £5,176.60.
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While the professionals used their decades of investment knowledge and traditional stock-picking methods, Orlando selected stocks by throwing his favourite toy mouse on a grid of numbers allocated to different companies. The challenge raised the question of whether the professionals, with their decades of knowledge, could outperform novice students of finance – or whether a random selection of stocks chosen by Orlando could perform just as well as experienced investors.
1 comment:
For some reason, I read the headline as "professional turd managers". Dunno why.
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