Invest Without Emotions
Brokers came out with their stock picks for Diwali last week. We have created Investment Themes based on their recommendations so that we can track their performance over a period of time and compare them to Nifty’s. Here are the themes:
So, doodh-ka-doodh-pani-ka-pani!
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We had started maintaining Investment Themes to reflect calls made by different brokerage to track their performance over a period of time. We called it “Dood ka dood, Paani ka paani.” So here’s how they have fared so far:
|
Theme
|
Nifty 50
|
|
|---|---|---|
| DB Rupee Depreciation 3-Sept-2013 |
+11.20%
|
+13.89%
|
| CS Midcap 28-Aug-2013 |
+12.51%
|
+14.71%
|
| Globe Monthly Monitor |
+3.28%
|
+14.71%
|
| Prabhudas Lilladher Largecap 13-Sept-2013 |
+7.26%
|
+6.06%
|
| Prabhudas Lilladher Midcap 10-Sept-2013 |
+13.84%
|
+5.23%
|
| Betting on Bharat October-2013 |
+1.89%
|
+5.06%
|
Only two of these calls outperformed the Nifty. To determine if it was because of skill or luck will require lot more samples (calls) to be tracked, so stay tuned!
Related: Investment Themes
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Good monsoons and election spending is apparently going to boost rural consumption in the medium term. The guys at UBS and Deutsche Bank put together a bunch of stocks that would benefit from rural growth and published it on ET.
We created a Theme that tracks this portfolio. So dood-ka-dood, pani-ka-pani.
Check out the Theme here: “Betting on Bharat October-2013”
Previously: Prabhudas Lilladher Midcap 10-Sept-2013
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In a paper published in January 2002, Joseph Piotroski explored whether a simple accounting-based fundamental analysis strategy can give better returns to an investor. He came up with a way to score balance-sheets based on financial strength – the higher the score, the better were the prospective returns. Scientifically curious readers can take a look at Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers (pdf)
We created a Theme based on this score. Basically, balance-sheets are scored based on current profitability, stability and operational improvements for two years (using 3 years of data.) The rationale is that stocks that score high on these criteria should out-perform over a period of time.
You can take a look at the this theme here: Financial Strength Value
Similar themes: Magic Formula Investing, Quality to Price, Balance-sheet Strength.
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Prabhudas Lilladher came out with a research report yesterday that picked 15 large-cap stocks that looked good. Can these stocks out-perform the Nifty? How would a portfolio of these stocks perform over a period of time? Is the hit ratio any better than 50/50? Well, we created a Theme that tracks this portfolio. So dood-ka-dood, pani-ka-pani.
Check out the Theme here: Prabhudas Lilladher Largecap 13-Sept-2013
Previously: Prabhudas Lilladher Midcap 10-Sept-2013
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