Cat Chews up Professional Stock Pickers

One of my readers sent me a link to an amusing article about a cat that won a UK stock-picking contest.

Named Orlando, he squared off against two other teams:  a group of kids, and some hand-picked professional investors.

 The Guardian reported their year-end 2012 results, awarding Orlando top honors.  “While the professionals used their decades of investment knowledge and traditional stock-picking methods, the cat selected stocks by throwing his favourite toy mouse on a grid of numbers allocated to different companies.”

After accepting the award, Orlando purred that he won’t be managing a mutual fund anytime soon.  He may have beaten the pros, but he underperformed Vanguard’s FTSE UK stock market index. The cat earned 10.84 percent, with the index earning 12.2 percent.

Orlando was last seen opening an indexed portfolio with Vanguard.  What a cool cat.

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

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1 Response

  1. Karl says:

    I feel great kinship and enormous jealousy toward Orlando. Until now we have shared the same investment strategy but sadly my toy mice fell on the laps of IFAs and so I am not looking at these gains. After listening to Andrew talk and reading his book I am an eager but still slightly confused novice who wants to get going with my index/bond portfolio. Here is my current dilemma: Orlando talks about Vanguards' FTSE UK stock market index but this is a mutual fund. Andrew if I am not wrong, advocates exchange traded funds (ETFS) which Vanguard also offers. So for my FTSE index tracker which of these two Vanguard products am I meant to buy the mutual fund or the ETF?

    Apologies for the inexperience and many thanks for any advice that anyone can offer.


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