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No. of Recommendations: 7
Except LTBH? The problem I had with CAPS was that I was picking stocks that I thought would do well in the future, looking past the bottom and toward the upside. In other words, the solid companies that I thought would survive, and are therefore currently underpriced. Unfortunately they continue to underperform for now so my score kept getting trashed.

The perception that LTBH gets trumped by short-term trading in CAPS has been a criticism I've seen before.

Yes, your score might be getting trashed in the short-term, but so what? Sure, it's no fun to sport the little beanie propeller hat (but it is a cool looking hat!), but judging a long-term strategy by looking at short-term results is a mistake in my opinion - not only in CAPS, but in real life investing too.

I was asked this question a while ago, and while it was more geared toward the difference between underperform and outperform calls, it applies here too....

Ever seen a horse race? Imagine a thoroughbred is pitted against a quarterhorse. Out of the gate, the thoroughbred is gonna be eating dust, and will continue to eat dust until the race hits about the 900 yard mark. At that point, the thoroughbred is going to pass the quarterhorse like it's standing still, and will never look back.

If you really did do your job right of making picks, and truly did indeed find solid companies that will survive and are underpriced, CAPS will eventually reward you. It might not be today, this week, this month, or this year - but if you made good picks, the thoroughbreds you're riding are eventually going to hit full-stride.

I didn't know what to do so I quit picking.

Each of us must decide for him or herself wether or not the benefit of CAPS is worth the time and effort invested - but I, for one, selfishly wish you'd keep making picks. After all, more picks makes CAPS smarter, and a more valuable tool for us all.


Russell (a.k.a. TMFEldrehad)
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