ILIKE the investment competitions you see in the papers now and then. You know the format – anyone can enter, pick a handful of stocks and six months later a picture of the winning team appears.
If the paper is lucky it’ll be fresh-faced schoolchildren or grey-haired grannies, their stocks have beaten the index, and the story writes itself (“City slickers beaten by the Broons”). When the honest endeavours of ordinary folk defeat the machinations of fund managers and stockbrokers, we all cheer.
Except it isn’t quite as simple as that. Let me explain why by telling you a “what if?” story.
Take 1,000 average club golfers and let them hit one shot each on a par three hole. These thousand shots will be all
“So long as there is a demand for snake oil, there will be snake-oil salesmen”