Learning Together

by David Forrest ([email protected])

Anchorage, AK (November 13, 1998) -- Let me start off by saying that anyone who missed last night's column by Jim Stevens on Compound Annual Growth Rate (CAGR) should really take a few moments to check it out. Jim shows why we Fools calculate annual growth the way we do, and it's a must-read.

Last week, I wrote about how several new and exciting contributions have developed in the Workshop folder, including the Spark5 and the EG5. I told everyone that the purported returns on Sparfarkle's Spark5 were 42% annually for the last 12 years. I also mentioned that the purported returns on MChernick's EG5 were over 50% since 1986. I use the word "purported" simply because we at the Fool have not independently verified the work of the people in our folders. We are relying on their hard work and their honor.

I received an e-mail from a fellow who was very annoyed that I would ever spotlight these models without backtesting them myself. He thought it irresponsible of me to tease people with these sorts of return numbers and not check them myself first. With all due respect to the fellow who dropped me the note, I say, "Hogwash."

The entire point of the Workshop (and the Fool Community as a whole) is to Learn Together. It's not my place to come out of nowhere and say that MChernick and Sparfarkle are right or wrong. Part of the fun of the Workshop is getting knee-deep into the work with everyone else on the board. At some point, we will absolutely backtest and publish our findings for everyone. Until then, you shouldn't stop digging and figuring out new ways to crush the market. You don't need my Foolish stamp of approval on your investing methodology.

Let me close tonight's column by asking people to help me out. I've been thinking a lot about how to improve the Workshop for you. What I'm interested in is your feedback. If you can drop a note to [email protected] and let me know what sorts of improvements you'd like to see, it'll be a big help. Do you want us to follow new screens? Backtest certain models? Add new data? Add background info? Just drop me a note and let us know.

Take care,
Bogey

Check out the latest file updates for the Workshop:
New Rankings | 1998 Returns | New Database