Monkey Portfolio Update December 31, 2013

I think I may have jinxed the stock market.  No joke.

A month ago, I asked my kids to each pick 10 stocks and we would track them in a virtual portfolio to see if they could outperform the market indices. How did they fare?

Background

I have been pretty smug lately about my stock picking prowess.  The stock markets have performed well this year that I started to wonder if maybe it was just dumb luck that I have done so well.  It has been a bit like shooting fish in a barrel.  The kid’s stock picks (a.k.a. The Monkey Portfolios) are intended to prove my hypothesis.

I also want to mention–as soon as I started tracking the monkey portfolios the stock markets started to quiver.  I thought, “Oh great!  I will be personally responsible for the next market correction because I have angered the market gods with my blog nonsense.”  Time will tell if this is true.

How did they fare? Portfolio Update.

Portfolio 1 underperformed

Portfolio 1 Dec 31 2013 Chart
Portfolio 1 Dec 31 2013 Chart

 

Stock Picks Portfolio 1
Stock Picks Portfolio 1

 

Portfolio 2 kicked butt.

Portfolio 2 December 31 2013 chart
Portfolio 2 December 31 2013 chart
10 year-olds stock picks
Portfolio 2 Stock Picks

All screenshots from google finance.

The Very Scientific Lessons Here:

  • Younger children are better at picking winning stocks than older children.
  • Adults should consult children when rebalancing their portfolios.

Have I proved my theory? Not as well as I had hoped but I suppose I should not be trying to prove stock market theories with one month worth of data.

What’s Missing?

  • In hindsight I should have picked 10 stocks for myself to show that my kids are smarter than me.
  • I also could have put together a portfolio based on recent buy recommendations from fancy-pants stock analysts to further prove my hypothesis.

Too late for that now, but I might try that exercise in the future.  In the meantime, I will continue to track the monkey portfolios and see if they outperform.

My own real portfolio is a mix of larger companies that have a history of regular dividend payments.  I have been slowly transitioning into ETF’s though, because I know my kids are better stock pickers than I am.

Wishing you a happy and prosperous New Year!

Updates:

Monkey Portfolio Update August 8, 2014

1 Comment


  1. All’s not lost! I hope your stock picking prowess will be better this year…

    Reply

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