the reason of CAPS
It is hard to say whether CAPS has had a net positive or a net negative effect on the finances of its players. If you look at the number of recommendations a typical "The p/e of the S&P is above 100" post got in 2009 and at the fanaticism of the gold mining experts in 2010/11 you might fear that quite a few players have lost quite a bit, but then again you had people like checklist34 telling you how cheap everything was in 2009 and quite a few brought up the idea that maybe gold is just a shiny metal ;)
In the end maybe the largest impact it will have had will be the bringing together of people that create value outside of CAPS.
Take for example me ;)
In 2010 someone suggested 4 of the "top CAPS players" getting together to manage a virtual fund in CAPS, that maybe could one day be turned into a fool.com fund or newsletter or whatever. Well, I was one of those chosen to participate, no idea who came up with the idea and who did the player selection.
After about a week, I was kicked out because "I traded too much". Ironically my trades had done best over that period ;) and soon after the other 3 lost interest and that was it. Well, almost.
I actually liked the idea of a virtual fund and while I had seen little value in the collaboration I continued my part of the fund, posting all trades and a few statistics every now and then in blog posts. Most casual observers of those "fund trades" will probably have wondered what all that was about, maybe thinking it was the work of someone quickly moving towards the more interesting part of the autism spectrum ;)
Every now and then you could see me whining about how I was wasting my talent ;)
Well, towards the end of 2012 zzlangerhans must have had enough of that obscure CAPS side show I was producing and offered my a job as co-manager of his biopharma portfolio. Like my "old fund" all trades are published close to real-time, only that now the trades are non-virtual. You can follow them via #zzporte on twitter.
If we have a decent day tomorrow we will end the week being in the green by over $100k, with over $600k now invested in a bunch of biopharma stocks.
Not sure whether that makes a great story yet, but if TKMR, a company we own close to 0.1% of, continues its rally, or we simply manage to grow the portfolio for a few years I think it may turn out to be one :)