The Rankings: Is Proof in the Pudding?

Note: I am a pretty much ambivalent amateur investor who makes more investing mistakes on a much more regular basis than anyone I know. So theres that.

Ok - so just for something to do this rainy afternoon, I took the Top 5 and the Second 5 of the Power rankings and I asked myself - well…what if I had been holding those stocks all this year. And just how…exactly, the results of those two groups would compare to some of the more astute investors I follow here on the fool as well as a couple of my subscription services? So…I thunk up a competition - starting five to starting five…as it were. And here are the results:

YTD Gains

A) Power Rankings Top 5

  1. ANET…+33.81%
  2. TGLS…+41.55
  3. AXON…+34.64
  4. NET…+48.81
  5. HUBS…+42.59

TOTAL YTD: +201.40

B) Best Investing Service

  1. MELI…+59.36
  2. TTD…+39.96
  3. AMD…+39.92
  4. CRWD.+32.16
  5. DOCN. +36.30

Total YTD: 197.70

C) Power Ranking 6-10 Companies

  1. PERI…+63.86
  2. TMDX.+23.17
  3. ARRY…+11.71
  4. MNDY.+11.72
  5. FOUR…+29.74

Total YTD: 140.20

D) Second Leading Subscription Service

  1. AYX…+7.33
  2. CRWD.+32.16
  3. FOUR…+29.22
  4. PSTG…(4.46)
  5. DT…+12.61

TOTAL YTD: 75.86

E) TOP FOOL Poster

  1. BILL…(29.52)
  2. ZS…(5.87)
  3. DDOG…(3.73)
  4. IOT…+83.31
  5. NET…+48.81

TOTAL YTD: 93.00

F). Second Best Fool Poster

  1. MNDY…+11.72
  2. NET…+48.81
  3. ENPH…(10.83)
  4. SNOW…+7.01
  5. S…+21.76

Total YTD: 78.47

Ok now well deserved caveat:

First of all a top five comparison does not tell the entire story. (Certainly part of the story and perhaps a fairly large part). The Rankings assume equal allocations which we all know is not how this works. So - theres that.

And now perhaps a lesson: There is a much wider world of investing than just SaaS.

Lesson two: Open your mind and widen your playing field and you might have a better record. Or maybe not - I dunno.

So in the end - do the Power Rankings work? Well…yes…and no. Frankly it’s a great deal of work and trouble just to get to the rankings - and then, you have to buck out all of your every own intangibles and thought processes to arrive at any real decisions. Having said that, having used this system for quite some time - in various forms and variations - it appears to me that the system presents some viable alternatives - nice options if you will - to what the popular really smart investors here on the Fool are doing.

So thats that.

All the Best,