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Cat beats professionals in stock picking challenge

A cat has beaten a team of investment professionals and a team of students in a 12-month stock-picking challenge run by UK newspaper The Observer.

Each team invested a notional £5000 in five companies from the FTSE All-Share index, with the opportunity to exchange any stocks every three months.

While the investment professionals brought decades of experience to bear, Orlando selected stocks by throwing his favourite toy mouse on a grid of numbers allocated to different companies.

The result: Orlando finished the year with £5543, several whiskers ahead o the professionals' £5177.

The student team trailed on £4840.

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Comments and questions

As you'd expect . . .

So much for the demise of the Efficient Markets Hypothesis.

Piotroski - Go and read his papers. EMH is weak form at best.

10% PA in this environment is a good result. Maybe Orlando followed in RAM's footsteps/pawsteps and is possibly operating a ponzi scheme?

They were picking shares, not scamming old ladies.

But Spring Time For Hitler is sure to flop!

What a laugh! The bottom line is however, the whole investment industry is based on one thing - speculation. I've got two smart cats; maybe I'll set up a chart and ask their advise on my next investment venture...

The investment industry is actually built on how much commission can be earned, not what is best for investors. Note that Orlando did not even charge the 2% to run the fund so was even further ahead.