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I Let My Chat Invest $10,000 to prove it's all luck

Ludwig・2 minutes read

Michael Reeves let his YouTube chat invest $10,000 in stocks over a year, competing against a professional trader and his baby, with results showing the baby outperformed the others but index funds trumped individual stock picking. Despite the chat's efforts, the professional trader emerged as the winner, highlighting the benefits of strategic stock picking.

Insights

  • Investing in index funds like the S&P 500 can often outperform individual stock picking, as seen in the comparison where the S&P 500 had a 32% increase over the past year, outperforming the narrator's investment and most competitors.
  • The stock guy, introduced as a competitor later in the investment experiment, achieved a 34.27% return, narrowly beating the S&P 500 by a small margin and emphasizing the potential benefits of strategic stock selection.

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Recent questions

  • How did Michael Reeves involve his audience in stock market investments?

    By giving $10,000 to his YouTube chat.

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Summary

00:00

Goldfish Beats Financial Advisers in Stock Market

  • Michael Reeves gave his goldfish money to invest in the stock market, which outperformed financial advisers.
  • The YouTuber gave $10,000 to their YouTube chat to invest in stocks over a year.
  • The chat could spam stock names, and a program would choose two for them to vote on.
  • They repeated this process 20 times, spending $10,000 in total.
  • The chat's competition was the YouTuber, a professional stock trader, and his newborn baby.
  • The first stock options were AMC (a meme stock) and Roblox (up 133% year to date).
  • The chat voted for Roblox, with insights from the professional trader about the stock.
  • The next options were Tesla (up 61% year to date) and Coinbase (up 76% year to date).
  • The chat chose Tesla, and the process continued with various stock options.
  • After comparing their performance against the market, it was noted that the S&P 500 had a 32% increase over the past year.

17:38

Stock Guy Outperforms Competitors in Investment Challenge

  • Competitor analysis from March 23rd to July 11th shows a gain from $10,000 to $11,314, a 10% increase, with the competitor being $100 below the S&P. The leading competitor at the start was revealed to be the baby, with a final value of $12,597.28, surpassing the others by $58.
  • Despite winning against the other competitors, the narrator's investment fell short compared to the S&P 500, highlighting the benefits of index funds over individual stock picking. The baby, despite lagging behind the S&P at times, still managed to make over $1,000.
  • The stock guy, the last competitor introduced, achieved a 34.27% return, ending with just over $13,400, narrowly beating the S&P 500 by a small margin. The final ranking placed the stock guy first, the narrator second, the audience third, and the baby last.
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