Investment Summary - Past Performance and Future Plan

Dear Blog Members,

We have seen that most of the comments are related to decision making for sell, hold and buy on previous suggested stocks. It gives me feeling that some of our blog members are unable to take the timely decision. Even though we have replied several time and given detailed update ‘Review of Investment Strategy’ on 6 May 2018. 

In this post we have analysed data of all stocks posted from beginning of this blog  to till date. We have gone through almost every type of market situation in last six years, we have seen market peak and very severe crash. It gives us fairly true data for our future strategy because sample data is large enough and spread over long period of six years.

Key  Facts & Findings 

• There were total 37 stock suggestion since beginning of blog in Jan 2015.

• Total 23 stocks or 62% of total suggested stocks were able to give 100% return.  

• There were 7 stocks or 19 % of total suggested stocks which have given us  net losses of only 30K.

• There are 7 active stocks or 19 % of total suggested stocks which have not completed yet three years.

• If someone has followed the investment strategy and booked partial profit around 100%  and reinvested the amount again and again then his return on investment will be much higher then who have invested in all stocks and keeping all stocks up till now.

• The 23 stocks which were able to give 100% return, have given 23 chances to reinvest during this period. 

• Pareto’ principle of 80–20 rule is applicable here because 80% of the comments are related  to 7 or 20% of the losing  stocks and only 20% of the comment related to 80% of winning stocks.

• It is hard fact that only 20% of the blog members are able to make decent profit or 80% of the total profit and 80% of the investors are left with merely 20% profit.

Now it is time to move forward with learning of past and try to make 100% of our blog members successful in their investment objectives. Those who want to be successful, It is time for fresh beginning. It needs to keep the things very simple just by following  the below guidelines for next 12 months and have the patience to wait for 36 month. We will go for 6 to 8 stocks in this year. 

1) Buying range for any stock should remain within 15% from suggested price, it gives additional flexibility of 5% from our previous range 10%. It will give chance to enter those who are late due to any reason. 

2) Prefer initial allocation 10 - 15% for each stock. I will give update on it along with respective blog post, it may vary stock to stock from 10 to 15%. It gives us 5 to 8% shareholding in free of cost stocks even after taking out our initial investment by booking partial profit around 100%.

3) Must book partial profit after getting  return around  90 -110 % on your investment. Keep the remaining free of cost shares for long term and reinvest principal amount again. 

4) On average winning stock have given hundred percent return in 12 months but our expectation from every suggested stock is 100 % in 3 years. You can continue to hold free of cost share based on their performance for long-term five years or above for 300 to 500% return.

5) In normal condition, need to stick with our investment decision for 3 years. It means that if any non-performing stock unable to give at least 100% return in 3 years than we must take the decision to sell it and reinvest it again in some other stocks.

6) It is not advisable to buy any non-performing stock after 3 years even though it is trading within buying range. It means that any stock suggestion is valid only for 3 years, if required it will be re-suggested on blog again with modified target.

7) Investment in stock market is subjected to significant risk. Investors must be aware and ready to face it. In case of severe market crash, better to use stop-loss 30% from suggested price to limit the risk on investment. 

8) If you have taken the decision to become successful investor than always be happy and never regret on any decision but learn from every right or wrong decision. 

Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.

                                                                                                                 Albert Einstein