Bloomberg Businessweek

Buying Is Easy. Selling Is Hard

Investors are so bad at picking stocks to drop that they’re better off doing it at random

Princeton economist Burt Malkiel is famous in investing circles for suggesting that blindfolded monkeys throwing darts at a newspaper’s stock pages could build a portfolio that would do just as well as one chosen by expert money managers. A recent academic study suggests that the blindfolded monkeys actually may do even better than the average institutional investor. However, the monkey traders should be given the darts when it’s time to sell holdings, not when deciding what to buy.

The researchers looked at more than 4

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