Message Font: Serif | Sans-Serif
 
No. of Recommendations: 4
Am I right to assume that one of the main purposes of CAPS is identifying great stocks through community thinking?

So how do I find these great investments? If I go to the top player(s) and see what they picked, I may find that the stock they picked a while ago has appreciated since they picked it to the point of not providing such good returns anymore.

If I go to the 5-star stock list I get a similar effect. A lot of top stock-pickers may have selected this one a while ago, but how about today?

So I was wondering if the rating of a stock should age. Meaning it gets a boost if it has been picked by top stock-pickers recently, the effect of which lowly declines over time. Is such an effect built in currently? If not, then I think it should be. It's obvious that Mr. Super Stock picker has Dell in his list and shows a return of 100,000% by picking it two decades ago, but that doesn't say anything about Dell today.

Another option may be to have alerts sent out if my favourite CAPS player makes a new selection. But I think something like that has already been suggested.

Right now I don't see how I can use CAPS to identify good stock picks, am I missing something?

Mark
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement