Don't Worry About Stock-Picking Accuracy When You're Swinging for a Home Run

Motley Fool CAPS (a free service at the Fool) is a wonderful investment tool that measures all my stock picks against the market. It's a way for investors to track their performance and see how they are doing. I put all my real-money stock picks in CAPS to track how I'm doing. And I also track an additional 150 or so names that are on one of my watchlists. So these are 199 stocks that I'm bullish on. I love to swim in the high-risk market pool, so a lot of these names are getting killed in 2022. 

CAPS says that my accuracy is pretty awful. 54% of my stock picks are currently beating the market, and 46% of my stocks are underperforming the market. This doesn't concern me at all. Why is that? Because CAPS also informs me that I am in the top 2% of investors at the Motley Fool. So this gives me confidence that my strategies will work over time. I don't have to be right on every high-risk pick. (Especially in the short-term).

The cool thing about the stock market is that if you own a few huge winners over a couple of decades, you will see massive outperformance against the rest of the market. Buying Apple (NASDAQ: AAPL) in 2007 can make up for a whole mess of stinkers.

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Source Fool.com