Image via Flickr (modified)
It’s official: I’m an investing genius.
Well, ok, maybe that’s a bit of an exaggeration. But genius or not, I did play the ASX Sharemarket Game for the very first time this year, and rather than haemorrhaging hypothetical dollars, I actually made money.
In the game, each player starts off with a hypothetical $50,000 to buy and sell any of the top 200 companies in the ASX – and look at that, I turned a profit of $3,611.98. Now if I only had a real $50k to toss around, I’d be set.
My strategy was to invest in companies selling really necessary products that I figured everyone needs – like Coca Cola, Dominos, and Bega cheese. And one waste management service, with much the same rationale.
Overall, it turns out that strategy wasn’t half bad, although I will admit to selling Coca Cola after a month or so of it dragging my profits down.
If you’re wondering what that ‘3’ on the left hand side is, that’s my ranking out of the Mozo league. Not only did I try my hand at investing over the past few months, but so did a bunch of people from Mozo who I roped into doing it with me.
Here’s how a select few of them fared, and what their strategy was:
Mozo’s top investor, our very own Warren Buffett (except with better hair) invested only in companies on the Australian Ethical list. And there was no wheeling and dealing here – once bought, these family-friendly stocks were left alone to grow or die. And wouldn’t you know it, staying squeaky clean paid off, with a profit of $5,220.59
Nearing the top of the board was a member of the marketing team, whose strategy was to “diversify the types and amount of shares” bought. It sounds impressive, and raked in a not too shabby at all profit of $2,878.13.
Not-so honourable mention
A savvy member of the sales team only invested in tech companies like MYOB and didn’t touch them again once they were bought. A solid strategy, given that we live in the digital-age, but it only yielded a profit of a little more than $500.
The wooden spoon
Weirdly, it was the person who went the dirty route – investing in coal, oil and every other heartless profit-making-machine you can think of – who fell to the bottom of the pile. In fact, this strategy was one of the few to actually lose money, tallying up a loss of $776.80.
So there you have it – in a twist so heartwarming it could have come straight from a Pixar movie, it turns out big pollution doesn’t pay, but buying ethical does.*
*This should go without saying, but please don’t actually invest real money based on these results. Much like the events of a Pixar movie, this result could be due to a lucky fluke as easily as an actual trend – in fact, that’s probably more likely.