So to test this theory I have created an id on moneycontrol where I would randomly choose 10 scrips and invest 100000 in the most random manner possible which would be tested against a well chosen ideal portfolio of an expert.
My expert in this case is Neeta Saraogi, a classmate from IIMK and quite the fin expert. More importantly she is a long term investor which means the theory can be tested both over the short term and the long term. Neeta will put up her carefully selected and I will put up my randomly selected portfolio up on 19th October which gives her a combination of time for selection and birthday luck :).
The final outcome would be visible 3 years hence on 19th October 2011 when the market realization of our portfolios will decide whether logic works or just dumb luck. However we will provide monthly updates on both our blogs.
The time chosen for this activity is perfect because a little expertise is what matters in such a market. simply because anybody can choose a winner in a booming market. we both have freedom to change our portfolios. Neeta will use logic, I will eliminate bad performers and replace them with randomly chosen alternatives.
Fresh funds cannot be infused into our portfolios throughout this period and our portfolios though dummy portfolios on moneycontrol will not increase beyond our 100000 +/- gains/losses.
The exercise is meant to be an academic evaluation of all that we know about the stock market and may be restricted by the sheer no. of participants - 2 but I bet it will be a whole lot of fun.
Luv,
P.R.
2 comments:
I'm with you on this one! Good luck!
Interesting indeed! May both of you emerge with a good positive return!
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