“The buzz among Apple (AAPL) traders today is a thought experiment that Matt Haughey worked up at A Whole Lotta Nothing,” Philip Elmer-DeWitt blogs for Fortune.
A few months ago I was thinking about Apple’s rise in value after the iPhone and how Steve Jobs does a great keynote every year, and naturally I thought “I wonder if there’s a way to make money off quick investments around the keynotes?” Then I thought “What if you did this every year, for just a day or two of investment?”
Elmer-DeWitt writes, “Haughey worked the numbers and the result is the chart above, which he calls the Keynote Index Fund. His conclusion: if you had invested in his hypothetical fund for the past two years, you would have realized a healthy 7.3% profit over 24 hours and 11.9% over 48 hours. The longer term results are not quite so impressive. Over the past decade, the fund gained 1.2% over 24 hours and 2.2% over 48.”
Full article, with links and chart, here.