IS there a connection between how a honey bee collects its nectar on a summer’s day, and the performance of your investment portfolio?
Bees make investment decisions every day, expending much time and effort searching for returns, which in their case is nectar from flowers. The link between investment and bees was explored by ecologist Leslie Real of Indiana University back in 1991 in a study that monitored honey bees’ behaviour to better understand attitudes to risk. This study will be unknown to most investors but offers some valuable insights.
During the experiment bees were given their own investment choice to make: Either feed from blue flowers which always contained 2ml of nectar without fail, or gorge on yellow flowers, which were randomly mixed so that one in three contained a triple payoff with 6ml nectar.
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Read full article here: Bees teach investors handy lessons