The Stock Picking Game: A Lesson in Financial Literacy
Keywords: stock market, financial literacy, investment, diversification, stock picking game, share prices, market volatility, university course, investment strategy, market performance
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Saturday, 21 June 2025
The article explores the concept of financial literacy through an educational exercise known as the Stock Picking Game, which was conducted by Mary Holm during her financial literacy course at the University of Auckland. This game aimed to teach students about the stock market, the risks involved in short-term investing, and the importance of diversification. The results of the game highlighted the unpredictable nature of the stock market and the challenges faced by amateur investors. Key takeaways include the importance of not judging a share solely by its short-term return, the impact of information on share prices, and the benefits of diversifying investments to smooth out market volatility. The article also mentions anecdotal evidence of non-human stock pickers outperforming professional investors, illustrating that even random selections can sometimes yield impressive returns.