is picking another NUMBER_TOKEN stocks for NUMBER_TOKEN and yeah maybe some of it could be luck but when burton malkiel originally made a statement that a blindfolded monkey could do just as well as some of the most well-respected hedge fund managers out there his words were closely studied in NUMBER_TOKEN the wall street journal simulated this experiment by pretending to be a monkey throwing darts at a random list of stocks and then comparing that with a professional over a six month period to see who ends up making more money the experiment was repeated over a hundred times throughout NUMBER_TOKEN years and surprisingly NUMBER_TOKEN of the time the monkeys came out ahead more profitable than the experts did and to make matters even worse for the experts they just barely managed to outperform the dow jones industrial average despite having every piece of stock picking analysis and research available to them another group of researchers also repeated this exact same experiment from NUMBER_TOKEN through NUMBER_TOKEN and they found that their monkey portfolio consistently beat the stock market by an average of NUMBER_TOKEN percent a year NUMBER_TOKEN of the time and it doesn't even stop there a goldfish's stock picks were simulated over a thousand times and beat the market by an average of NUMBER_TOKEN percent over three years there's also a cat who beat the market by eight percent a monkey named adam who beat jim cramer a chimpanzee who beat NUMBER_TOKEN of russian bankers and even a crypto trading hamster who beat warren buffett believe it or not there's actually a formulated reason why animals are able to get such a high return and it has nothing to do with luck chance or a secret world of headless chickens is depicted in south park instead it has to do with the strategy being used to pick stocks that tend to do well consistently over and over again and here's what they discovered research conducted in NUMBER_TOKEN found that by randomly selecting NUMBER_TOKEN stocks out of the top NUMBER_TOKEN NUMBER_TOKEN companies and buying them all in equal proportions you're increasing the chances that such a portfolio would contain smaller stocks which have the potential for even higher growth and because monkeys didn't get emotional and panic sell the moment jim cramer comes out with a spooky headline that led to an outperformance of the entire market year after year as proof of this between NUMBER_TOKEN and NUMBER_TOKEN smaller stocks returned NUMBER_TOKEN annual growth on average while large stocks returned eight percent so that just means when NUMBER_TOKEN stocks are picked at random while investing an equal amount in each you're more likely to include smaller stocks which would boost the portfolio's return when compared to an overall index and uh oops voila you beat the market now even though this sounds like the ideal way to invest before i have boo pick another NUMBER_TOKEN stocks for NUMBER_TOKEN you're probably wondering well graham if it's really that easy then why is it everybody doing it i hate to be the bearer of bad news but there's an answer to that too although before we go into that since i am talking about stocks it would only be fair to offer you a completely free stock worth all the way up to a thousand dollars thanks to our sponsor of today's video public hi my name is graham stefan do you hate it when brokerages sell your trades to market makers like hedge funds are you tired of wondering if your brokerage has your best interest in mind have you been wishing for easy cryptocurrency investing right from your phone well thankfully public can help no not that public this
START_SPONSOR_TOKEN although before we go into that since i am talking about stocks it would only be fair to offer you a completely free stock worth all the way up to a thousand dollars thanks to our sponsor of today's video public hi my name is graham stefan do you hate it when brokerages sell your trades to market makers like hedge funds are you tired of wondering if your brokerage has your best interest in mind have you been wishing for easy cryptocurrency investing right from your phone well thankfully public can help no not that public this END_SPONSOR_TOKEN