Dartboard Investing

What is Dartboard investing?

Dartboard Investing, in essence, can be explained as the strategy behind making investments in a number of randomly chosen shares with the hope that exercising that particular option will cause no harm. In fact, in most cases of dartboard investing, the investor expects a favorable result rather than something just break-even.

The practice, needless to say, varies drastically from the traditional approach involving careful selection of the shares-to-be-purchased. The technical or fundamental analysis exercised in the traditional approach usually tends to be much more extensive.

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The genesis of the idea behind dartboard investing can be traced back to an experiment carried out by a group of people in Forbes magazine in the late 60’s. During their experiment, the group glued a page of stock market quotations on the wall and threw darts at the share prices mentioned therein. They went on picking all the 28 shares that the darts had hit before proceeding onto investment equal sums on each. To the surprise of many, their investments had gloriously outperformed the stock market average of appreciation some 15 years later.

Edited and Updated 2nd January 2014

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