Students from the Global Network for Advanced Management convened virtually yet again to engage in the Yale Stock Market Trading Game, an innovative simulation designed by Roger Ibbotson, a noted professor at Yale School of Management (SOM). The most recent iteration of this competition concluded with a standout performance by Laurin Komar, a master’s candidate in finance from Bocconi University.
During the online closing ceremony on February 24, Ibbotson reflected on the game’s origins, which date back over half a century when it was played with paper cards. He emphasized the importance of experiential learning in education, stating, “The more we can get people to actually participate and do things, that’s how people actually learn.” He advocated for hands-on experiences over passive learning, particularly concerning market dynamics.
This year’s trading game introduced unique challenges as it simulated a severe market downturn. Jaan Elias, director of case research and development at SOM, pointed out the unprecedented difficulty of trading in such a bear market. He revealed that two of the four simulated companies were ultimately worthless, a detail that emerged randomly during the game setup: “We didn’t do this on purpose. This is all randomly chosen.”
As the game’s simulated market plummeted by 58%, only four participants managed to secure positive returns. Komar’s strategy, which included gaining insights from private information, capitalizing on bid-ask spreads, and aggressive short-selling, enabled him to achieve a 31% return, marking the highest margin of victory in the game’s history.
Ibbotson underscored a critical lesson revealed through the results: the tendency for traders to question their skills during downturns. “When the market is down, we all think we’re fools, and when it’s up, we all think we’re geniuses,” he remarked. He emphasized that the ultimate goal is not to control the market, but rather to strive for outperformance. “What really matters is whether you beat the market,” he concluded, encapsulating the essence of learning and strategy in the volatile world of finance.


