Patti (whipartist) wrote,
Patti
whipartist

Marketocracy

In the summer of 2000, I created an account on Marketocracy.com. It's a site that lets you set up your own mutual funds and manage them. Back then I created three accounts-- a high-tech fund, a fund of lowball stocks that I wanted to day trade with, and a fund of stocks whose ticker symbols start with the letter K.

I played with the site a little bit for a couple of weeks, then pretty much forgot about it. Tonight I saw a mention of the site, and decided to see if I still had an account. Lo and behold, I did! And my funds were ticking merrily away in their unmanaged state.

Do you remember the summer of 2000? The dot-com boom was just about to go bust, but stocks were still sky high. Euphoria was giving way to doubt, but few wanted to believe that the ride was over.

Here are the funds. Bear in mind that each of these started with a million dollar valuation.


PBTFPatti's technology run-up fund$840,482.02
PBLFLowball nearly-day-trading fund$1,875,266.51
PBKFPatti's K fund$1,036,835.51


Frankly, I'm shocked. The tech fund should have been in the toilet, because three of the six stocks in it are long gone. Ebay saved its bacon, though, with a 70% increase since 2000. Remember, that's up 70% from a pre-crash valuation.

The lowball daytrading fund shocked the hell out of me. Four out of the five stocks in the portfolio are valued at precisely zero, but one, KCS, is up 2200%. I know nothing about them except that they're an energy company. Actually, that explains it. Go Shrub!

The K fund amuses me. Two of the stocks are dead, one is down significantly, two are down a little, and two have basically doubled in value since they were added to the portfolio. One is Kellogg, up 91%, and one is Kubota, up 122%.

By all rights, none of these funds should be doing well. They either represented my own tech-industry euphoria, or they were chosen by slightly-constrained dartboard.

I think I'll leave them for another couple of years. And maybe create a couple new funds. Anybody want to play? We can each pick a letter of the alphabet and set up a fund of stocks whose ticker symbols start with that letter. Then we ignore them. At the end of one year, whoever has the highest valuation in their fund is the winner.
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