The Monkey On Wall Street - Watch BEFORE You Invest

Take a random walk down wall-street to see the revolutionary monkey-man who changed it all.

Today we're talking game theory, investment strategies, the efficient market hypothesis and at the very end I have a special life announcement!!!

Talk with the people:

Follow the madman:

Support the work:

Hear the music again:
Cowboy Bebop OST
jinsang - providah, gone

Read the shownotes:
Burton Malkiel - A Random Walk Down Wall-Street (PDF)

Forbes: Any Monkey Can Beat the Market

SPIVA 2017 Year End Score Card

Marketwatch - How HedgeFunds got beaten again

Does Past Performance Matter - Persistence Remains Elusive

Index Fund

Efficient Market Hypothesis

Sink your teeth into more:
RoboInvestors

Tax Loss Harvesting

Smart-Beta ETFs
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financial disclaimer: This video does not constitute investment advice. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence.

[theVHSvlog]

I think investing in Coffee Break is the only winning move

[mattsupertramp]

"Wall Street is Las Vegas for smart people" brilliant.

[nicothic]

I'm a financial professional, and I agree 100% with this video. In fact topics like this are always discussed when dealing with clients. Videos like this raise awareness on how money really works and there's so much more that can be discussed. Amazing video, and congrats on the wedding!

[OfficialXeuphoria]

The work you put into these videos is incredible, keep it up <3

[AHunDread]

lobster stocks on the rise
buy more sobster locks

[vo]

The intro with Cowboy Bebop's OST made everything better, haha

[TheXV]

An index is not a monkey. An index is designed to target companies based on some criteria e.g. their market cap so it would invest more money into big cap companies like Apple for example than small companies, a monkey would just randomly select companies. I agree with the overall point of the video, but you need to stop confusing a random strategy (monkey) with an index.

[nathanieldrew]

Extremely well done video, great work

[rosomak]

There is a consistent winning strateg on the stock market.: Don't get caught on insider trading.

[syntext]

Shout out to the Cowboy Bebop soundtrack music. And thanks for serving the financial advice with it.

[TallDude]

"Beating the market" means beating the average. In order for you to beat the market someone has to underperform the market average, because that is what determines average returns! That does not mean that an individual investor cannot consistenly beat the average. Professionally managed funds largely control the movement of the stock market, but because they charge fees the AVERAGE fund manager will have returns that underperform the market.

[TheWorkingClassroom]

I feel like Buffett recommends index funds for two reasons and potentially both apply. Reason one - most people are not cut out to be "active investors", they lack the stomach to hold onto their portfolio when the market is plummeting, they also generally lack fundamental security analysis skills. Reason two - its the only move he can identify that makes sense to him right now. He sees no way to do better than average currently, so it's best to be average currently, because that means you aren't below the average. Buffett wants to keep his track record of being known for smart investing and I've heard on more than one occasion that the reason he's holding lots of cash actually has more to do with preserving his investing legacy and protecting Berkshire from possible upcoming obligations than predicting a recession and being ready with his bucket for catching raining gold.

[bdcopp]

The dark truth of wall street is that the most profitable funds often use insider trading.

[chicken]

Man the stock market could be predicted there's just too many variables to calculate for given our current understanding and technology. That it's actually an unsolvable problem or there's some kind of physical constraints on computation that would prevent it from being possible, but in principle it could be predictable very much

[morganjonasson]

I think there are two factors you haven't thought of:
1. delay. you don't need to have a strategy that nobody discovered yet, just one that few has implemented yet or longer. My basic reasoning is, since 90% of all people lose money on stocks, you should do what 90% of the them don't. Now, if you found a strategy that can beat the market, people sure will discover it after you, but it will take some time before the strategy becomes mainstream and thus not working anymore. Until then, you could have made a ton of money. when your strategy don't work anymore, do backtesting on other ideas until you find a new one and the cycle is starting again.
2. Emotions. Lets say within a certain market, the most efficient strategy would be to pick the worst performing stock, in belief that it sooner or later is going to turn and rise again. Even if that strategy would become mainstream, very few would try it out. Because it defies logic sense. It looks like economic suicide, when that is the excact reason why it's the opposite. So there will always be strategies were the only thing that keeps 90% of all the people from doing it, is fear, even if a financial expert told them it's the winning strategy.

[bobociwabobociwa]

Dont waste time arguing on the theory. It is not about theory, is about the investors. If you are good chef, you can adapt and perform well with any cooking utensils.

[pinkietoes]

The efficient market hypothesis works because the actions of winning/losing stock pickers enforce it. Jumping to the conclusion that index funds should be everyone's strategy effectively enforces the index fund allocations per stock and destroys the efficient market hypothesis.

[chicken]

This brings up an interesting thing I've heard before about how always being wrong about stocks would be just as valuable as always being right.

[User-hezd]

You are wrong in your assumption that index funds are the same as a "monkey" or random investor.

I suggest reading into what index funds are, and how they are chosen (and why)

[schrodingerscat]

this video has the main thoughts of my past 15 years wrapped into a short video. cowboy bebop music included