財經演員與神猴

Hong Kong Economic Journal (信報) and 林行止could always give me some hilarious suprises.

Mr Lin quoted the result of comparing the stock picking result of the US famous stock television personality, former hedge fund manager and he has a Juris Doctor degree in Havard Law School, and Leonard the Wonder Monkey. Of course, I don't think there's really such a monkey but its merely a character representing random pick of stocks. The result is that the Monkey won over Mr Cramer.

Here's the methodology:

If the recommendation is buy and the stock outperforms the index over the 30 days following the recommendation, then it is counted as a good pick. Otherwise the result is counted as a bad pick. If the recommendation is sell, the results are reversed; the recommendation is good if the index beats the stock, and bad otherwise.

To calculate the average return on investment, we add all the returns for buy recommendations, then subtract the returns for sell recommendations, then divide by the number of recommendations

Why they launch this funny thing is because they want to see how good a market commentator and advisor is when compared with a random decision of buying or selling stocks.

Enjoy!

The Website: http://cramerwatch.org/