SGXcafe - Beat the Market

I chanced upon SGXcafe - Beat the Market Game this weekend. Its under SGXcafe website --> Market tab --> Tools tab --> Mini Games (Beat the Market).

Its a game created by the site owner where they pull up actual historical Company data listed in Singapore and ask if you would ignore or invest in it. After you made your decision based on the data provided, it will show if you made the right choice by comparing the returns 1 year later with the STI index ETF. It will also reveal the name of the Company.

It seems like a good platform to test out the value criteria that i was putting to work. As it turns out, i was right 65% of the time. That means i got 65% right on beating the STI index based on the value criteria that was set. Seems a little bit low for comfort.

However, something to note is that most of the wrongs i got was when i choose to ignore the stocks and it ended up beating the index. In reality, i would consider this a missed opportunity and not exactly a wrong. Also there are instances where the stock met the value criteria but ended up suffering from huge losses compared to the index.

This game is really a good tool to test how good any criteria is. For the one i am using, the result seems to show that it increases the odd of winning the index. Also it shows the importance of having a portfolio of about 20 stocks to diversify the risk of any value trap.

Go sign on to SGXcafe and knock yourself out playing the game.