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Amateur Investors Are 3.2 Percent Worse Than Chimpanzees At Picking Stocks

Amateur Investors Are 3.2 Percent Worse Than Chimpanzees At Picking Stocks

Gus Lubin
Dec. 24, 2012, 2:29 PM

A lot has been written on the madness of amateur investors thinking they can pick stocks better than the professionals.

And we've all seen the chart of investor psychology, which shows why people buy at the top and sell at the bottom.

But to really appreciate just how bad amateur investors are at stock-picking, consider the findings of a famous study by UC Berkeley's Terry Odean.

Read more: http://www.businessinsider.com/terry-odean-on-stock-picking-...




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Pretty funny ...

... a few years ago, there was a guy on the Internet posting about Jim Cramer picks. He had a chimp, and every day when Cramer made picks, the Chimp also made a "buy" or "sell" pick on the same stock.

Over time, the guy posted the Chimp vs. Cramer picks.

Of course ...

The chimp won.