Chimp Outsmarts Wall Street

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What to expect (June 5)

• 🌌 The monkey that beat everyone, then didn’t.

• ✅ Monster Pick - On the verge discovering of another porphyry?

As investors, especially in a high-risk industry such as mining, we often try to “beat” average returns of 10%.

Many view hedge funds and other successful firms as ‘geniuses’ or having access to exclusive information that ordinary investors don’t.

They must know something we don’t, right?

Wrong.

For the most part, company stock success is largely dependant on the economy and industry.

For instance, in 2021 the junior mining industry was on fire 🔥.

Every stock seemed to go up, it didn’t matter what you picked.

Now, not so much.

If you’ve been investing long enough, you’ll remember the tech boom of the early 2000’s.

Companies like Pets.com and Webvan saw their stock prices soar, only to crash when the bubble burst in 2000.

But what happens when picking stocks completely random does better than most money managers?

The Prodigy - Raven Thorogood III

The early 2000’s is a classic example of how riding the wave of the industry and markets can lead to great success, but also great downfall.

Raven Thorogood III was a prodigy investor in the early 2000’s who beat hundreds of money managers during the tech boom by randomly throwing darts at a dartboard full of stocks.

Raven's portfolio outperformed the majority of professional money managers during that period.

The kicker? Raven Throrogood III was a chimp.

In a famous experiment conducted in the early 2000s, Raven was given a dartboard with various stocks.

His stock picks, determined by throwing darts at the board, were tracked over a year.

The researchers called it MonkeyDex.

Raven's stocks generated a 213% return. Crushing more than 6,000 other money managers returns.

However, his story ended soon after.

By 2003, when the market conditions shifted, Raven's portfolio ‘MonkeyDex’ was gone.

Worth $0.

It’s an example of how riding the wave of a hot market is largely random, and no amount of skill will outdo that.

In all honesty, 99% of us (myself included) should really just be buying ETF’s and holding for as long as possible.

That’s not to say you can’t be putting some risk dollars in the junior mining game - because let’s be honest, you’re still going to do it - you degenerate.

Just don’t YOLO your life savings into a mining stock.

Monster Picks

Stock Monster makes it’s Monster Picks each week, focused on junior mining companies that I believe will do well - you can see previous picks here: https://lookerstudio.google.com/u/0/reporting/ab8c783f-e693-4ad7-9667-f63386edcd79?s=l8kxge1Fgpc

The portfolio is down as a whole, but that’s to be expected for a portfolio full of junior mining.

The market is not hot.

That being said, some stocks are up, and by keeping a close eye on their performance you can ‘trade’ them during upticks in the market.

Check out our latest Monster Pick here 👇

Buying & holding is usually the smart move, but with exploration and mining it’s important to keep an eye on the performance - sometimes selling makes sense.

If a stock is up 30% in cool market, that might be a good time to sell.

Don’t end up like Raven Thorogood.

Junior mining is basically gambling, so allocate your resources accordingly.

Have you had any experiences where you mistook luck for skill? If so reply to this email.

Remember, this is not financial advice and you shouldn’t listen to anything I say - I;m an idiot. Just sharing my views and ideas.

👋 Colton, Stock Monster.

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This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. All content is based on public knowledge. We have not been compensated in any way for this pick or content; we genuinely just like it. Assume that contributors to articles own or have interest in stocks they talk about, therefore may be biased, but not compensated to promote them.