Saturday, 19 April 2014

Through the Years

As we can easily see the success rate increases through the years. I think VP becomes more selective in suggesting any new company. (This is evident from the number of companies he suggests in the site.)

We can summarize his success rate based on advance & declines through the years as below.

Success Rate based on Number of shares


Year Advan + Decl Advances Declines Success Rate
2010 93 41 52 44 %
2011 37 24 13 64 %
2012 25 16 9 64 %
2013 22 19 3 86 %
Overall 177 100 77 56 %

The success rate increases from 44 % (in 2010) to a whopping 86% ( in 2013) even very less differences in the overall market levels or in SENSEX or NIFTY. This mainly I attribute to the too many number of recommendation happen in year 2010.

But What about the Performance of 2010 Picks ?

But we know success rate based on number of shares is NOT the correct way to evaluate. Instead I used to find out the success rate based on asset growth invested in these companies. Assuming a fixed equal sum is invested on all these picks in the year 2010, the end result was amusing. 

 If you have invested Rs. 5000/- ( 5K ) per share in each recommendation, you might have invested 595K (119 Companies), but the present value of the investment will be 832.5 K, a whopping return of 39.91%, and comparing with SENSEX monthly average of 2010 ( 18207 ) to closing rate of SENSEX ( 22484 )  gives you 23%. Beating SENSEX by  almost 74 % !! 

Note : Dividend yield NOT added to these calculations.

How his recommendations performed in post 2010 in next post.

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