Draftkings vs Stock Market: The Use Of Investment Simulators In The Hiring Process

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Draftkings vs Stock Market: The Use Of Investment Simulators In The Hiring Process
DraftKings

Draftkings vs Stock Market: The Use Of Investment Simulators In The Hiring Process

Draftkings vs Stock Market: The Use Of Investment Simulators In The Hiring Process by Steven Delano, MyInvestmentRecord.com

In light of the popularity of sports competition websites like draftkings and fan duel perhaps the proliferation of stock market games should come as no surprise. Howthemarketworks, SIFMA’s stock market game, stocktrac and marketwatch are some of the more popular. Universities such as Wharton, Ithaca, UT Dallas and UIC offer stock market contests to high school students, although there has been some criticism that with a normal distribution of outcomes, a short term game competition can give a misleading impression of skill (or lack thereof) to novices. But of course questions about performance persistence are nothing new at all levels of investing.

For over 800,000 people in the US alone (US Dept of Labor 2015), investing is not a game but a career that is challenging and pays well, which raises questions about access to and progress along this career path. Central to this question is the efficiency of the selection process, and specifically the criteria by which investment talent is identifiable.

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Recruiters and HR people for top tier investment companies recognize that cultural affinity with the hiring authority can prevail   in the absence of more objective criteria.  A good word from a friend/networking contact or graduation from ‘feeder schools’ can drive selection in the resume sorting phase of the process.

In a business where the value added  (performance) is measurable, there may be a role for a less arbitrary indicator of skill, one that can compete with school and interpersonal fit to improve the interview list. Could an investment simulator i.e. “paper portfolio” produce useful data to make the early selection process for investment jobs better and fairer?

On the continuum between high school students choosing stocks they have heard of and investment professionals spe