Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

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Bonnie Lo: For 50 Cents, a Lesson can be Learned:

At the PetsMart, there is a beautiful rock pool complete with waterfall and koi. Beside this pool, there is a gumball machine filled with fish pellets. For 50 cents, a lesson can be learned. I start feeding the pellets to the dozens of koi, big and small in the pool. When you throw in one, the fish don't move much and the pellet is eaten without much of a fight. But throw in a few, and they start to bunch, hoping for more in the same spot, wriggling against each other and the wall, even when there's nothing to eat. I throw a few more, farther away from the crowd and it takes them a while to figure out where the new food is, but the ones on the edge get it. I throw pellets in at the same time and the struggle for food gets more fierce. In the interests of testing I throw a few all around the pool - noise and volatility, the fish are scrambling here and there, all over the place! I try feeding individuals, especially a beautiful white-gold fish. Doesn't work, the big fish beside him leaps and grabs it. With more coins I could spend hours feeding these guys. Oops, I do that in the market already!