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The economists first big finding is that these financiers are real whizzes when it comes to buying stocks. They ve got skills that could justify charging clients high fees. The average stock they chose to buy outperformed the random dart-throwing monkey by 1.2 percentage points. That might not seem like a lot, but with the power of compound interest, it really adds up over time. It makes these investors rock stars in the world of finance. They re earning those Bugattis. But then the economists looked at these investors performance when selling stocks. It turns out they re bad, much worse than the monkey. The stocks the investors sold ended up going up in value faster than the stocks they decided to keep. If their clients had instead hired the monkey with darts to randomly choose which stocks to sell, the clients portfolios would have earned 0.8 percentage points more per year. Again, that is a huge amount in the world of finance. Goodbye Bugatti, hello Ford Focus.

Lawrence schmidtAlex imasJeff bezosKlakow akepanidtawornDaniel kahnemanAmos tverskyInternational monetary fundUniversity of chicago booth school businessMassachusetts institute of technologyMassachusetts instituteChicago booth schoolInternational monetaryBuying slowNobel prize winningலாரன்ஸ் ஶ்மிட்அலெக்ஸ் இமாஸ்