Amateur investors have beaten professionals on portfolio returns

Analysts of the world's largest investment bank, Goldman Sachs made a sensational conclusion: over the quarantine period, private investors outperformed Wall Street professionals by 16 % in returns on investment portfolios!

Statistics of the financial organization indicate that the value of shares that were bought by amateurs after the collapse on March 23, 2020 increased by 61% by mid-May. At the same time, the return on investment portfolios of hedge funds and mutual funds did not exceed 45%. Interestingly, since the last crisis in 2008, professional investors have never outdone the S3333P 500 index in terms of returns.

What strategy allows private investors to get such results? Goldman Sachs claims that they purchased so-called cyclical stocks whose value reflects the falls and recessions in the economy. Having bought the assets that went down in value in the wake of the "coronavirus" news, by mid-May, private investors were able to get a much bigger price for them, as the business climate in America was reviving.

Here are the TOP 10 companies whose shares were bought by private investors:
1. Ford
2. General Electric
3. American Airlines
4. Delta Air Lines
5. Walt Disney
6. Carnival
7. GoPro
8. Aurora Cannabis
9. Microsoft
10. Apple

At the same time, professional investors chose shares of major software developers and leading payment systems. According to the logic of professionals, services of the electronic payment industry should become more expensive at a time of online transactions growth.

Here are the TOP 10 companies whose securities attracted professional investors:
1. Visa
2. Adobe
3. Mastercard
4. Alphabet
5. PayPal
6. Salesforce.com
7. Microsoft
8. Alibaba
9. UnitedHealth
10. Charter Communications

Only one company was on both lists - Microsoft. At the same time, the Apple shares are considered to be one of the most underestimated by the professionals.

What conclusion can be drawn from this news? For short-term investments at a time of crisis, it is enough to "ride the wave" by investing in cyclical securities. If you are investing with a long-term goal to ensure the future of your family, you should focus on projects that are based on a promising patent or an innovative development that is in high demand in the market.