Investors are always looking for an edge to beat top stock indexes and legendary stock pickers. Could the answer have been waiting at the pet store all along?
What Happened: A hamster named Mr. Goxx has been making cryptocurrency trades for his human owner since June 12.
The hamster, who is likely named after former Bitcoin (CRYPTO: BTC) exchange Mt. Gox, completed live trades via a Twitch account. The trades are also documented on Mr. Goxx’s Twitter account.
Mr. Goxx runs on a hamster wheel that selects one of dozens of preselected cryptocurrencies. The hamster then exits the wheel and chooses one of two tunnels, which signal either a buy or sell transaction.
The high-tech hamster wheel, tunnels and cage send the data to a real trading platform that uses real money to invest in the respective cryptocurrency trades.
Since June 12, the transactions are up 24% on an original investment of $390 from the hamster’s anonymous owner.
Why It’s Important: The rise of retail traders and social media platforms has led to people seeking hot new stock and crypto picks to outperform top names.
Mr. Goxx has a better return than the Nasdaq 100 and SPDR S&P 500 (NYSE:SPY) since the account was started on June 12.
The hamster has also outperformed legendary stock picker Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRKA)(NYSE:BRKB) and the performance of many of the top cryptocurrencies including Bitcoin and Dogecoin (CRYPTO: DOGE).
The 24% return for Mr. Goxx has also outperformed legendary fund manager Cathie Wood, who had many of the top performing ETFs in 2020.
Mr. Goxx was also close to matching the performance of Tesla Inc (NASDAQ:TSLA) stock over the same time, but fell just short of the 27% gain for the electric vehicle company.
The returns by the cryptocurrency picking hamster are not guaranteed to continue, but might be worth watching given the short track record.