What's up grandmas guys here so after a year of patiently waiting and getting hundreds of comments, dms emails, letters and smoke signals asking me how my stock market investments are doing. The time has finally come to reveal exactly how much money i made, and i got ta admit it's a lot more than what i expected like if you thought the entire market being up 28 was nice. Think again, because my strategy is up over 41 with absolutely no work whatsoever and we're gon na repeat the exact same process again in 2022 to see just how far we could take it, the secret you might ask. Well, i had a monkey pick stocks at random and believe it or not.

It's fundamentally proven to work 96 of the time. So we need to talk about exactly what's going on how a monkey was able to pick the best performing stocks. Precisely what i invested in the strategy behind this and then finally, how you could use this information to try to make as much money as possible, but before we go into this monkey business and why buu has become a champion of stocks. It would help me out tremendously if you go ape on that like button by making it turn blue or if you haven't already subscribed doing.

That makes me go bananas all right. Monkey jokes aside, thank you guys so much and also big. Thank you to public for sponsoring this video, but more on that later. So all of this started in december of 2020, when i came across a quote from the economist burton malkiel, who said that a blindfolded monkey throwing darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by experts And that got me thinking, i should give it a shot well within a few hours i was put in touch with the fun-loving celebrity monkey boo, whose owner volunteered to help me on my quest to make as much money as possible.

So here's how we were able to make that happen. I found a website that lists the top 1000 publicly traded companies in the us, and then i used a random number generator to pick a number one through a thousand that would correspond with the ranking of each of those stocks on the list. I repeated that process. 30 times so, i could randomly select the large enough sample size for glue to pick from and then with each of those 30 stocks written down on a piece of paper.

Boo proceeded to hand select 10 of them, where i could invest 10 000 each and now, to my surprise, one year later, those 10 randomly picked stocks picked by a monkey are doing better than the overall index up over 40 percent versus the s ps measly 28 And if you're curious, which stocks i bought, how well they each did and which ones he's gon na pick in 2022. Here you go the first ford they're one of the largest auto manufacturers in the world. They were the number one best-selling automaker in the us throughout 2021 and their new mustang monkey is the number two best-selling electric suv. You might even see them as hitaxi in new york.

Second cerner corporation. They provide health information, technology devices and hardware with more than 28 000 employees around the world third align they manufacture, 3d digital scanners and the invisalign braces used by dentists. Fourth, anel americas is a conglomerate to the energy companies located in south america. However, tax reforms and shutdowns have led the company to fall over 30 percent.

Fifth are public services they're one of the largest waste management companies in the us, serving as undeniable proof that one man's trash could be another's treasure six. We got the most hated company in millennials blackrock they're, an investment corporation with now almost 10 trillion dollars under management than a history of solid growth and subscribing. If you haven't done that already seventh we've got ihs markets which provides data and trade processing for foreign exchange and loans. Eighth invitation homes is the largest owner of single-family rental properties in the u.s owning approximately 80 000 homes because they didn't buy avocado test and overpriced coffee, ninth tesla.

They manufactured the most popular and data-driven electric vehicles in existence. They were added to the s. P, 500. Exactly a year ago, and since then, they've reached a 1 trillion market cap, despite elon selling in 10th netflix one of the top streaming platforms in existence with over 207 million paid subscribers worldwide.

Even if mr beast gets more views on youtube in 24 hours than the original squid games got in a week, that gives me a total return of 41 in one year since december 21st 2020, which is higher than the 28 gain of the s p. 500.. What's really weird about this is that these returns are somewhat normal for a monkey. Let me explain, and before i go into that, i know what you're probably thinking, but, graham, how do you know this isn't just random luck? Maybe the monkey just happened to pick really good stocks.

You have to do this again in 2022 and don't worry as you're about to see monkey boo is picking another 10 stocks for 2022 and yeah. Maybe some of it could be luck, but when burton malkiel originally made a statement that a blindfolded monkey could do just as well as some of the most well-respected hedge fund managers out there, his words were closely studied. In 1988, the wall street journal simulated. This experiment, by pretending to be a monkey throwing darts at a random list of stocks and then comparing that, with a professional over a six month period to see who ends up making more money.

The experiment was repeated over a hundred times throughout 14 years and surprisingly, 40 of the time the monkeys came out ahead, more profitable than the experts did and to make matters even worse for the experts. They just barely managed to outperform the dow jones industrial average. Despite having every piece of stock, picking analysis and research available to them, another group of researchers also repeated this exact same experiment from 1964 through 2010 and they found that their monkey portfolio consistently beat the stock market by an average of 1.7 percent a year 96 of The time and it doesn't even stop there, a goldfish's stock picks were simulated over a thousand times and beat the market by an average of 14.5 percent over three years. There's also a cat who beat the market by eight percent.

A monkey named adam, who beat jim cramer a chimpanzee who beat 94 of russian bankers and even a crypto trading hamster who beat warren buffett, believe it or not. There's actually a formulated reason why animals are able to get such a high return, and it has nothing to do with luck chance or a secret world of headless chickens is depicted in south park. Instead, it has to do with the strategy being used to pick stocks that tend to do well consistently over and over again and here's what they discovered. Research conducted in 2013 found that by randomly selecting 30 stocks out of the top 1 000 companies and buying them all in equal proportions, you're increasing the chances that such a portfolio would contain smaller stocks, which have the potential for even higher growth and because monkeys didn't Get emotional and panic sell the moment.

Jim cramer comes out with a spooky headline that led to an outperformance of the entire market year after year as proof of this, between 1980 and 2015, smaller stocks returned 11.24 annual growth on average, while large stocks returned eight percent. So that just means when 30 stocks are picked at random, while investing an equal amount in each you're, more likely to include smaller stocks, which would boost the portfolio's return when compared to an overall index and uh oops voila, you beat the market now, even though this Sounds like the ideal way to invest before i have boo pick another 10 stocks for 2022 you're - probably wondering well, graham. If it's really that easy, then why is it everybody doing it? I hate to be the bearer of bad news, but there's an answer to that too, although before we go into that, since i am talking about stocks, it would only be fair to offer you a completely free stock worth all the way up to a thousand dollars. Thanks to our sponsor of today's video public hi, my name is graham stefan.

Do you hate it when brokerages sell your trades to market makers like hedge funds? Are you tired of wondering if your brokerage has your best interest in mind? Have you been wishing for easy, cryptocurrency investing right from your phone? Well, thankfully, public can help no, not that public, this public public.com right from the comfort of your own home they're, an investment platform that doesn't participate in payment or order flows. So that way, you could rest well knowing that you're getting the best pricing on your trades plus they incorporate an optional social aspect into the entire experience where you could choose to share your investments without giving advice. According to their legal compliance team, you could grow a following and you could very nicely tell people why you think they're wrong, but wait there's more with fractional investing. You can now buy a slice of your favorite companies for as little as one dollar so gone.

Are the days of needing thousands of dollars to buy a single stock just type in a dollar amount that you want to invest in boom done? On top of that, they also announced a multitude of cryptocurrency options free to choose from including but not limited to bitcoin. Ethereum cardano dogecoin solana, luna avalanche and much much more, not to mention as a limited time offer. Public wants to invest in you by giving you a free stock worth all the way up to a thousand dollars and use the link down below in the description and use the code. Graham, when you sign up, that's it so use the link down below.

In the description, let me know which stock you get and now, let's get back to the video alright. So now that you got your free stock in terms of why everyone is not using animals for their investments, the reason is simple, and that would be risk, even though smaller companies outperformed the markets by 1.7 96 of the time they also experienced significantly more volatility, meaning Just as much as they went up, they also went down. For example, if we compare the top 1 000 growth companies with the top 2 000 value companies, we could see that nearly every price movement in the value category is magnified by at least 20 to 50 percent. So every peak is higher and every drop is lower and risk is something that every single investor needs to consider when they think to themselves how much money do they want to make or potentially lose? After all, if you didn't care about risk - and you just wanted the small chance to make a whole bunch of money - you would just go out and buy a whole bunch of lottery tickets.

But people don't do that, because there's too much risk that you would lose everything the reality is with investing. You have to balance the amount of money that you make with the amount of risk you're willing to take and for most investors taking the short-term volatility of investing in 30, completely random stocks for an average of a 1.7 percent. Higher return doesn't generally beat the safety of investing throughout the entire index and earning a little bit less. My monkey portfolio is a perfect example of this, even though it's currently beating the s p 500 by 13.

In the event the market dropped, it would be that much worse, in fact, as you can see throughout the year the top performers weren't always on the top and for a while several of them saw a rather severe loss, while the s p 500 gained. That's why it's interesting as this experiment is and as fun as it is to research and watch when you account for both stability and risk. The best investment still tends to be throwing it all in an index fund tracking, the overall market and then doing absolutely nothing. Even though, technically 96 of the time, you're gon na see a slightly lower return, you wind up paying that extra little bit for the assurance that your returns will be more stable.

The drops will be smaller and you'll see consistent growth over decades and not just years. But that's not going to stop me from investing another hundred thousand dollars to recreate this experiment again in 2022., and you know what that means. We're going to be going back to our monkey boo to see if he could beat the market again for two years in a row to start just like the first time i'll use, my random number generator find out which ranking that correlates to within the top 1000 Companies gather those 30 different options, and then i could give all of those to boo for him to pick at random, so without further ado feel free to scroll back and slow down exactly those stocks that were picked and now here's boo and one year we could See who came out the winner, hedge funds, the s p 500, or the genius stock picking monkey boo because come on? You can't say no to that face grand stanford. I want you to pick out 10 winners again, like he did last year.

Boo he's just looking around there's one fmd: oh boo's, already picked number two sjm jm smucker company, eight more sir, always got my tyler technologies, inc, he's being very selective. This year, moscow court photonics corporation first american financial court, costco wholesale corporation lamb, western holdings, inc, aptar group inc there. It is williams, sonoma inc. Now for reference.

I invested ten thousand dollars into each of these ten companies for a total of one hundred thousand dollars, and from here on out, we could track their performance to see just how well they do over the next year. Oh and also don't forget to subscribe, because it's totally free and if you want to follow exactly what these stock picks do over the next year, you may as well click that button before you forget. Now is the perfect time before you forget. Thank you guys.

So much i'm also going to be linking booze information down below in the description for anyone who wants to follow his channel and don't forget to claim your free stock down below in the description when you sign up for public. So with that said, you guys, i really appreciate you watching, also feel free to add me on instagram or on my second channel. The graham stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video from me every single day, make sure to add yourself to that, and also on my hungrybol app down below in the description where you get a daily newsletter and you can track all of your favorite stocks.

With all the information you ever will need, so it's all right there in the description. That's free too! Thank you guys so much for watching and until next time.