Can Dumb Money Profit in the Stock Market?

The entire premise of this website is to demonstrate that amateur investors can generate higher returns than simply buying the S&P 500, or worse, paying someone else to buy it on their behalf. The slightest outperformance over the market each year can add up to huge amounts over an investing lifetime and the best part is that anyone can do this with a bit of patience and time spent looking into companies and how markets and money work. You can make it as simple or as difficult as you want. I have been doing this “seriously” since January 2014 and have been rewarded so far for the patience and effort.

Close to 500% in 10 years, more than double the S&P 500!!!

The very first post on this website was an attempt to outline the advantages retail/amateur/small dumb money investors have over the big players. I think they all still hold up. I would emphasize again that large funds are unable to change directions quickly where retail traders have the advantage of being much more nimble.

Think of positions that big players hold like huge cruise ships or oil tankers. At sea, those huge ships must make their directional choices far from when they are needed. From top speed it can take almost a kilometre to stop some large tankers. Smaller traders can react more like a jet ski in comparison. This can lead to over trading, but there is peace of mind knowing your entire portfolio could be sold for cash within a few seconds.

Follow the portfolio to get a monthly update on how it is doing.