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Author: TMFCinco Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8079  
Subject: Re: what am I missing? Date: 6/26/2012 12:12 AM
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Herman,
First congratulations on your CAPS portfolio, you are really killing it, especially with so few picks. You have identified one of the shortcomings of CAPS: the fact that it's not the most accurate measure of true investing skill. In fact, it is more of a game. Almost certainly your buying and holding those 40 or so companies would be more effective in real life than Seth's strategy of buying and shorting over 1000 companies. I'd bet he would even agree with you on that point.

One of the reasons the scoring system is what it is, is to encourage players to make more picks and thus contribute more investing commentary and build a larger pool of green/red thumb data. This can lead to an overall lower quality of picks, as many players (myself included sometimes) will pick stocks in CAPS without much of a written explanation or sometimes none at all. While the game isn't perfect, I've certainly had fun with it and learned a lot. For example, I literally had 1 pick that took me from an all-star to really negative. Sometimes, you need to know when to sell at a loss.

In any case, I would encourage you to keep playing and pick as many or as few picks as you like. Just keep in mind that the scoring is based 2/3 on raw quantity of points and only 1/3 based on accuracy.
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