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Author: ImpishLM Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76  
Subject: Is CAPS taking over Fool.com? Date: 12/14/2006 7:40 PM
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I noticing more and more articles on the Fool website analysing ratings given to stocks in the CAPS game.

Isn't this backwards? CAPs is mostly made up of amateurs like me. It worries me when the full-time staff at Fool.com are relying on CAPs more than doing their own research as they used to do.

Other sites are noticing this also: just read an article over at Yahoo which commented on "the increasingly shrill Fool." It link to an article that looked at stocks that scored high on CAPS but didn't do well in the next 30 days.

I don't blame the authors of the Yahoo article for describing the Fool as shrill. The article using CAPs data was indeed a bit of fluff looking at the ratings of amateurs.

Dear Gardner Brothers: CAPs may be a fun game to add to the website, but please keep things in perspective. I'm not here to learn from other like me, but to learn from pros like you.
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Author: TMFBreakerDave Big gold star, 5000 posts Old School Fool Supernova Phoenix 1
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Subject: Re: Is CAPS taking over Fool.com? Date: 12/14/2006 11:13 PM
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ImpishLM,

I don't know which Yahoo article you're referring to, but I would encourage you to read any of the following books, as, if you have not read them, I believe your perspective will at least be challenged -- if not changed -- by their perspectives:

The Wisdom of Crowds, by Jim Surowiecki
Mavericks at Work, by Bill Taylor
The Innovator's Dilemma, by Clayton Christensen
Wikinomics, by Don Tapscott (out in a month)

We take CAPS deadly seriously, and so do many other media venues (The Wall Street Journal had a nice article about it).

Let me also make sure I tell you that I appreciate your compliment at the close of your note, by the way. Tom and I and all our advisors are doing the same stockpicking, due diligence, and level of outperformance that we've ever done before. The Fool's advisory services (with the exception of Global Gains, which launched a month ago) are all beating the market soundly, and several are at all-time high levels of outperformance over the S&P 500. For those for whom pro advice is something they'll gladly pay for -- and we're at all-time high numbers for subscribers too -- we're dishing out the same Foolishness we have for 14 years now.

Fool on,

David G.

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Author: ImpishLM Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 52 of 76
Subject: Re: Is CAPS taking over Fool.com? Date: 12/15/2006 7:55 PM
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"Let me also make sure I tell you that I appreciate your compliment at the close of your note, by the way. Tom and I and all our advisors are doing the same stockpicking, due diligence, and level of outperformance that we've ever done before. The Fool's advisory services (with the exception of Global Gains, which launched a month ago) are all beating the market soundly, and several are at all-time high levels of outperformance over the S&P 500. For those for whom pro advice is something they'll gladly pay for -- and we're at all-time high numbers for subscribers too -- we're dishing out the same Foolishness we have for 14 years now."
_______

How nice to get a response from one of the head honchos!

I'm one of those who will gladly pay for your advice, as I subscribe to both the Stock Advisor and Green Light. That compliment was intentional, and I hope you understand that my criticism of CAPS comes from a loyal fan of Fool.com.

While I've caught your eye, let me explain a bit more of my take on CAPS. I tried CAPS for a few months and got out when I realized that the scoring system was rewarding short-term investing. It seemed to me that this was contrary to Foolish philosophy: it encouraged players to pay too much attention to the daily ups and downs of prices, and the "Top Players" were those who had done well at such short-term thinking.

It was tough to stomach when after reading the latest SA newsletter with its frequent reminders to think in terms of 3 to 5 years (advice which has served me very well, btw), I'd turn to CAPS with its bold headlines shouting "You are winning/losing to the market today". Phrases like that have a distinct market-timing flavor to them, and if a newcomer were to visit CAPS and nothing else at Fool.com, s/he would understandably form a very skewed view of the Foolish approach.

Thanks for the references; I'll take a look. A couple of the titles do surprise me a bit, as they seem to be about following the crowds, rather than contrarian investing. Obviously, I shouldn't judge these books by their covers!









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Author: TMFJake Two stars, 250 posts Old School Fool SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53 of 76
Subject: Re: Is CAPS taking over Fool.com? Date: 12/21/2006 10:26 AM
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Regarding CAPS being a game for short term, momentum investors, here are a couple of posts on the subject:

LoneIguana's Thoughts: http://boards.fool.com/Message.asp?mid=24672646

David G Assessment: http://boards.fool.com/Message.asp?mid=24672703

Our intent is not to make CAPS a game about short term investing. We look at CAPS as a research tool that supports any number of investing methodologies. And many CAPS all stars are not opening and closing picks frequently to "win" the game. So while I'll acknowledge that some have used this as a successful strategy on CAPS to boost their rating, I don't think that the value of CAPS is diluted in any way by these actions. The CAPS ratings are still perfectly valuable to me as a long term investor, and do not reflect, in aggregate, a short term sentiment.

And I'm perfectly satisfied to compete without taking a short term approach, and I look for All Star investors who take the same approach.

I loved what you were doing with CAPS5Star1Star (it's on my favorite player list), and I hope you continue to manage the fund. In fact, we had you in mind we we rolled out our blogging tool. With think the Jester index fund blogging page would be a great platform for many of the posts that you made on this board.

Cheers,

jk

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Author: ImpishLM Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 54 of 76
Subject: Re: Is CAPS taking over Fool.com? Date: 12/21/2006 11:31 AM
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"I loved what you were doing with CAPS5Star1Star (it's on my favorite player list), and I hope you continue to manage the fund. In fact, we had you in mind we we rolled out our blogging tool. With think the Jester index fund blogging page would be a great platform for many of the posts that you made on this board."


Thanks for continuing this discussion.

The quote above confuses me... perhaps you have me mixed up with someone else?

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Author: raychard Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 71 of 76
Subject: Re: Is CAPS taking over Fool.com? Date: 6/20/2014 10:47 AM
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As a newbie to Fools, I'm glad I read this post and the previous one. I'm not here for short term investing. That was a mistake I already made. Thanks for the discussion.

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