Every time I talk about equity investing, I ask my audience to invest in 2 notebooks of 200 pages each.

One notebook to write down what makes you buy / sell a share, what price you are paying, transaction charges, etc. Sometimes I also ask them to write what ‘gut’ feeling that they had. So when a person says “I wish I had bought Tata Motors when the index was 13000! …

I met an army person who has an excel sheet full of recommendations from expert…it is a long list..and only a few continue to be in the original form…he has marked…all others are RED.

However I do not wish to quote from this data pile. Not sure if he has all the recommendations of ONE expert, date wise, and all channels….

If somebody can design a software that will accept inputs from all media, scroll the net, and create reports ‘expert’ wise, this software will sell like hot cakes..

Imagine a software which creates report like:

Expert Name      Rec scrip    price         rec price at which to sell         time frame suggested   what happened..

it will be a fantastic report and save people a lot of time in separating the grain from the chaff, and also let the regulator know what is happening.

Today the regulator does not have enough expertise to see if there is a vested interest in a recommendation. Creating such reports will mean there soon wll be competition…and that is good for the investor.

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  1. I am not very old is share market. I started in 2007 only.
    From that time, what I have realised is.. these so called experts give buy recommendation when market is going up and sell recommendation when its going down. Thats the simple formula these ppl follow.

  2. Subra,

    a firm called cxoadvisory.com already does what you suggest. They rate “investment gurus” by their accuracy percentage scores. Of course, its for American experts. Would be nice if we had an Indian equivalent, though!

    Have a look

    http://www.cxoadvisory.com/gurus/

  3. subra,

    One query
    I read somewhere that US stock index between 2000 – 2011 there has been no increase in S&P. NASDAQ is actually less than what it was in 2000. Japan’s Nikkei has now less than half of the highest figure achieved in the 1980s. Thus do not think that prices travel in only one direction.

    what do u have to say on this ?
    if the same thing happens in india that common man invest in good MF or in the index funds via SIP route as retirement fund then will they achieve their target ?

    We started 30 years back with a low base and thus we could achieve so much(2000 as sensex value). Now that we have attained a base it will be harder to keep growing at this high rate for a very long time.

    ** PLEASE DON’T LEAVE MY COMMENT UNATTENDED. WE ALL READERS WOULD LIKE TO HEAR YOUR VIEWS AND GUIDANCE ON THIS. **

    thanks
    milind

  4. i also like to have your views requested by milind.
    however in the same west markets warren buffet is said to have made money from investments the same markets. or he made through carrying out some businesses directly instead of investing in equity?
    on face , in matured markets, you can’t make/increase wealth unless there is growth. in no growth market, i think, only value searching and investing could be fruitful. and with growth , it would be more fruitful. but how can a ordinary investor access such value?

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