Can You, Too, Become an Investing Genius?

Rick KahlerAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

“I guarantee to make you an investment genius in six months. Send me $199, and I will reveal my secret.”

Of course, I am not serious. Please don’t send me money. Please don’t send any, either, to other self-proclaimed “experts” who are serious about scamming you with “secret investment advice.”

Here is my tongue-in-cheek example of how to become an investment guru: Randomly choose 64 people. Tell 32 of them the price of a share of Tesla will be higher at the end of the month; tell the other 32 it will be lower. Your “prediction” will be true for one group or the other. At the end of the month, divide the “true” group into two groups of 16 and repeat the exercise. At the end of the second month, divide the “true” group in half and repeat. Continue the pattern with the remaining eight, then four, and the last two. After six months you will have correctly predicted the movement of Tesla stock to one person – who will think you are a financial genius. Now you can market your secret to others.