Are blind monkeys better investors than most fund managers? What was considered a bold theory fifty years ago is now essentially unchallenged. Maybe it would really make sense to buy a monkey and some arrows?
| Stefan Richer Economic correspondent in New York |
Good morning from New York,
Today's newsletter aims to remind you that blind monkeys are better investors than most fund managers. The term “blind monkeys” was coined by economist Burton Malkiel in his masterpiece “A Random Walk on Wall Street.” In the book, first published in 1973, the American claims that blindfolded monkeys who throw darts at a newspaper containing all listed US stocks perform better on average than popular investment managers on the New York Stock Exchange.
What would have been considered a bold thesis fifty years ago is now essentially uncontroversial (unless you ask a fund manager who—surprisingly!—may say the opposite). A year ago, the Wall Street Journal laughed it off and asked a blindfolded journalist to shoot twelve arrows.
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