Thes tock market is inherently unpredictable, yet that doesn’t stop many so-called “experts” from putting on a suit and tie and pretending they know how to help people invest their money. If any financial adviser asks for your business in helping make money, just ask them how much money they’ve made for themselves. Their answer (or silence) should tell you all you need to know.
In 2012, The Observer, a British newspaper, ran a contest among three groups of participants to invest an imaginary 5,000 British pounds in the stock market. The three “groups” were:
- A trio of professional money managers (Justin Urquhart Stewart of Seven Investment Management, Paul Kavanagh of Killick & Co., and Andy Brough of Schroders).
- A group of schoolchildren between the ages of 11 and 18 at John Warner School in Hoddesdon, England.
- A domestic house cat named Orlando.
While the professional money managers’ portfolio increased by 3.5% and the children’s portfolio increased by 3.2%, Orlando the cat’s portfolio increased by 10.8%. That means rather than pay an expensive financial adviser to help you pick stocks, ask your cat instead. Not only will the advice be cheaper, but it will likely make you more money as well.