Evaluation I

An insane person cannot evaluate an insane evaluation system.

As you know I have been trying to restore sanity to the insane premises Wall Street has been teaching its brokers and you for all these years. Their insanity has become so pervasive that it has become conventional wisdom. The brokerage houses have taught everyone to act insanely and to think that what they are doing is sane.

Wall Street has taught you the insanity of doing research, dollar cost averaging and buying and holding. Anyone who can rub two braincells together can figure out that all these are lies. A book written 40 years ago by Nicholas Darvas called "How I Made $2,000,000 in the Stock Market" came to the same conclusions I have, namely, brokers don't know anything and research is worthless. He gives a good explanation as to why he came to those conclusions. You might still be able to get the book at the library as it is out of print.

Why is research worthless? There is one good source of information about almost any listed company as well as many unlisted companies from Morningstar. They are the nexus for stock market information. You can find out more things about a company than you will ever need to or want to know. You will be inundated with information, but there is one thing they do not know. Will the stock go up after you buy it? And that is the only thing that counts.

When you ask your broker about a stock he will go to the company file that has all the statistical information about almost any company. He thinks that stuff is good. If it is so good why doesn't he buy it? Because down deep he knows it is worthless, but he can't admit that to you or even to himself.

His company has taught that you must do research. In his defense he does not realize he has been a good student, but has had a bad teacher. You would think that after doing this nonsense all those years he would catch on, but he doesn't because everyone around believes it is true. He is in an insane asylum. Everyone looks normal.

You cannot evaluate an insane evaluation system with insane evaluation. Once you realize it is insane you must leave it. Don't argue with the insane person. Now you have shaken lose from that weird thinking you will be able to look back on it to wonder why it took you so long to come to your senses.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

[email protected]; 1-888-345-7870

In The News:

Here are the mutual fund favourites in April  MoneycontrolMaximum month-on-month change in value was seen in TCS, ICICI Bank and Kotak Mahindra Bank.
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Reliance Capital to exit mutual funds biz; sells stake to JV partner Nippon Life Insurance  Economic TimesNew Delhi: Reliance Capital (Rcap) Thursday said it will exit the mutual funds business by selling its stake in Reliance Nippon Life Asset Management Ltd ...
Should you invest in DSP Quant Fund NFO?  LivemintDSP Mutual Fund has launched a new fund offer (NFO) for DSP Quant Fund. The new scheme proposes to select stocks based on pre-determined rules and ...
Large cap index mutual funds continue to outshine actively-managed large cap schemes  Economic TimesLarge cap index funds are outperforming the actively-managed large cap mutual fund schemes in the past one-year period. Kotak NV 20 ETF is topping the ...
As market prepares for Modi 2.0, here are 13 stocks to invest in for five years  Moneycontrol.comEarly trends put NDA in a comfortable position to form the government that has, to an extent, already been factored by the market after exit polls.
Vetri Subramaniam, UTI Mutual Fund, talks about which stock segments he favours now  Economic TimesIndia's growth trajectory has been consistent over the past two decades and many firms have performed well across cycles, Vetri Subramaniam, Group President ...
Stocks vs Mutual Funds: Which is a Better Option to Invest?  EntrepreneurStocks and Mutual Funds have their own set of hiccups, which are better to know before making your investments.
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
Hot and Cold Stocks of Mutual Funds in April 2019  MoneylifeIn April 2019, Larsen & Toubro and Hindustan Petroleum Corporation(HPCL) were the most preferred stocks of Indian mutual funds.
More active managers are beating the stock market again thanks to the trade war: Goldman Sachs  MarketWatchActive stock pickers are having one of their best years since the financial crisis, and these money managers can thank rising U.S.-China trade tensions for their ...
Holding of mutual funds in private lenders at a fresh high in April  Business StandardThe holding of mutual funds (MFs) in private banks saw its weightage increase to a new high of 19.3 per cent in April — the seventh straight month of increase.
How to Choose Between ETFs and Mutual Funds  U.S. News & World ReportInvestors can add either mutual funds or ETFs to their portfolio.
Indians won’t invest in stocks, debt till election 2019 ends  QuartzInvestors in India are waiting the election out. In April, inflows into equity mutual funds (MFs) dipped to their lowest levels since January 2017, according to data ...
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
Retail Investors Should Take Exposure To Midcap Stocks Through Mutual Fund Route: Ankit Jain, Mirae Asset Global Investments  BW BusinessworldIn an interview with BW Businessworld, Ankit Jain, Fund Manager, Mirae Asset Global Investments (India), talks about Consumption led funds, lending rates and ...
Financial planners recommend new fund from Mirae Mutual Fund  Economic TimesConsistent performance of the existing equity mutual fund schemes at Mirae has prompted financial planners to suggest the Mirae Asset Focused Fund to ...
Should you invest in the DSP Quant Fund NFO?  LivemintDSP Quant Fund to select stocks based on pre-determined rules to eliminate bias.The NFO of DSP Quant Fund will remain open till 3 June.
Will these mutual funds help me to build Rs 50 lakh?  Economic TimesI am a new investor in mutual funds. I am 30 years. My aim is to build a corpus of Rs 50 lakh or more in 10 years. I am planning to invest through SIP in mutual ...
Sensex plunges 1,313 pts from record high on profit booking as NDA leads  Business StandardDuring the day, Sensex and Nifty hit the levels of 40000 and 12000, respectively, for the first-ever time.
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
4 Hartford Mutual Funds to Invest in Now  NasdaqHartford Funds, a segment of The Hartford Financial Services Group, Inc. (HIG), had total assets of around $104.8 billion under management (as of Dec.
What netas invest in: mutual funds, Reliance, KF shares  Deccan HeraldFixed deposits and tax-free bonds seem to be among the most favoured financial investments for the political leaders fighting the 2019 Lok Sabha polls, while ...
How Vanguard Patented a Way to Avoid Taxes on Mutual Funds  BloombergControversial heartbeat trades help the funds avoid taxable gains.
What Are the Different Types of Mutual Funds?  NerdWalletSift through the most common types of mutual funds: Those that invest in stocks, bonds, both stocks and bonds, and short-term debt.
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
Look who is sitting on a cash pile to buy stocks after election result  Economic TimesMUMBAI: The domestic equity market is likely to trade in a narrow range until the election results, with foreign fund flows slowing down and mutual funds opting ...
What Type of Mutual Fund Schemes Should You Invest in? Know Here  News18Equity funds are mutual funds which invest majorly in equity stocks of listed companies. They are considered to be risky but they tend to give higher returns in the ...
China Stocks at the Mercy of Foreigners Like Never Before  BloombergThe record pace of foreign selling in China's equities matters now more than ever. While overseas traders are quickly souring on yuan assets, they've also never ...
Best And Worst Of Q2 2019: Industrials ETFs And Mutual Funds  Seeking AlphaThe Industrials sector ranks seventh in Q2'19. Based on an aggregation of ratings of 426 stocks in the Industrials sector. ITB is our top-rated Industrials sect.
7 Smart Mutual Funds for Income Investing | Dividends  U.S. News & World ReportMany investors turn to bonds and dividend stocks as their first destination for income. However, picking individual stocks can be daunting and building a ...
Mutual Fund Update: Stocks that attracted fund managers in April 2019  Dalal Street Investment JournalIf we look at the March 2019 data, then the energy sector was the one that featured on top of the buying done by the fund managers. However, the story in the ...
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
Liquidity Scare: NBFC stocks slide on fears of spillover  Economic TimesAny default or downgrades in NBFC space will have a cascading impact on the entire sector.
Best And Worst Q2 2019: Real Estate ETFs And Mutual Funds  Seeking AlphaThe Real Estate sector ranks last in Q2'19. Based on an aggregation of ratings of 180 stocks in the Real Estate sector. No Real Estate sector ETFs receive a ...
Bech de kya? How to answer this question in stock market  Economic TimesThe phone rang. And I was not surprised. This name always lights up my phone screen when the market hits a new level – high or low. And the question is ...
What Makes Berkshire Hathaway Shares Better Than an Actively Managed Mutual Fund?  Motley FoolTo start with, the company is a lot more than Warren Buffett's carefully selected stock portfolio.
5 Mutual Funds to Buy on Demand for Lower-Cost Funds  NasdaqMutual fund investors in the United States tend to invest more of their mutual fund assets in lower-cost funds, a report by the Investment Company.
Vanguard issues 10-year forecast for stock, bond market returns  Philly.comVanguard on Tuesday released 10-year projected returns for stock and bond markets, an eagerly awaited piece of research out of the world's largest mutual ...
People Want to Buy Uber Stock  Bloomberg“Uber IPO Is Oversubscribed by Day Two of Roadshow,” it says here, but I would say that Uber Technologies Inc.'s initial public offering was oversubscribed by ...
‘Whack-a-Mole’ Stock Market Is Now Getting Hit From All Sides  BloombergThere's the trade war, the escalating conflagration in Washington, near-anarchy in the U.K. and tensions in the Middle East. Add perceptions of a stiffening ...
Top fund houses among main bidders for Voda Idea issue  Economic TimesMUMBAI: Franklin Templeton, Eastspring Investments, ICICI Prudential Mutual Fund and SBI Mutual Fund were among major financial institutions to bid for the ...
4 Best Dimensional Mutual Funds to Invest in Today  NasdaqFounded in 1981, Dimensional Fund Advisor offers investment solutions from different asset classes to institutional and individual investors,.
Aditya Birla Sun Life Mutual Fund seeks SEBI nod for banking ETF  MoneycontrolAditya Birla Sun Life Mutual Fund has sought the Securities and Exchange Board of India's approval to launch Aditya Birla Sun Life Banking ETF, according to ...
3 Passive Funds to Buy on Strong Inflows & Healthy Assets  Zacks.comInvestors have more money parked in such funds compared to the actively managed ones.
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Another Marijuana Stock on U.S. Exchanges  Investorplace.comWhy jumping exchanges leads to more institutional money … and how getting in ahead of it can make small investors big returns. It's official — OrganiGram has ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
Should I increase investments in mutual funds once I have more money to invest?  Economic TimesI am a 19-year-old student. I want to invest Rs 2,500 per month in mutual funds for 7-8 years. Can I increase the investment amount with time—once I have more ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
These are fertile grounds for long-term stock pickers, says Samir Rachh of Reliance Mutual Fund  Economic TimesSmall cap funds are going through a rough patch after a bull run in 2017. etmutualfunds.com spoke to Samir Rachh, fund manager, Reliance Small Cap Fund, ...
New SIP investors feel the pain as equity fund returns disappoint  Economic TimesSip by sip: That's how the average Indian had a taste of equities in the past couple of years. But the steady road to riches, which involved monthly mutual fund ...
5 funds that outperformed the recent surge in Nifty returns  Economic TimesFunds that bet on banks and financial services managed to outperform during this period.
What India's top three mutual funds bought and sold in February  LivemintMUMBAI: Inflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility ...
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
Mutual funds garner over Rs 65,000 crore in Jan  Economic TimesMUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore.
Why it is a bad idea to always look for outperformers while investing in mutual funds  Economic TimesOne of the most important features that any investor, wealth adviser or anyone in the financial media looks for in an investment product is its track record in ...
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Debt mutual funds with Zee exposure send investors into a tizzy  Economic TimesMUMBAI: Worries about the prospects of debt mutual funds holding securities of Subhash Chandra's Essel Group entities have resurfaced after Kotak Mutual ...
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comData for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the ...
Diversify equity portfolio with international funds  Economic TimesAs a part of diversifying your equity portfolio, wealth managers believe investors should diversify geographically using mutual funds. They can do this by ...
BJP’s Amit Shah has diversified stock investment portfolio; Rahul Gandhi prefers mutual funds  Economic TimesShah held shares worth Rs 17.56 cr as of March 22, while Gandhi has MFs worth Rs 5.19 cr.
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Flows to equity mutual funds rebound as rally spurs risk appetite  Economic TimesStock funds took in about 118 billion rupees ($1.7 billion), the highest since October.
Three large mutual funds opposed to L&T’s takeover of Mindtree  Economic TimesMUMBAI: Three large mutual funds holding shares of Mindtree are opposed to L&T's hostile takeover attempt of the mid-sized software company.
At least 100 MF schemes own these stocks; that should mean something, right?  Economic TimesDomestic institutional investors have become one of the key market drivers in recent years.
2019 is the year of SIP, says S Naren of ICICI Prudential Mutual Fund  Economic TimesNSE Nifty 50 price-to-earnings ratio reached the highest level of 29.24 on April 2. Does it mean markets are overvalued? Should new investors enter in the ...
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
Why stock market volatility is beneficial for mutual fund SIP investors  Economic TimesWhile investing through systematic investment plans, you make more money precisely because the markets are facing volatility.
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
How your mutual funds played the balancing act during stocks crash  Economic TimesBy Bhavana Acharya The last three months has been a bumpy ride for largecap stocks. The year so far has been unkind to the midcap and smallcap set.
Sebi issues new format for mutual funds' monthly report  Economic TimesFrom April 2019 onwards, AMCs will have to submit the MCR to Sebi in the new format by the third working day of each month.
Is it time to invest in mid cap and small cap mutual fund schemes?  Economic TimesMany market pundits believe this is the right time to enter in small cap and mid cap segments.
Top fund houses are busy lapping up PSUs; what’s behind this new-found love  Economic TimesNEW DELHI: India's top three mutual funds, which manage over Rs 9 lakh crore in debt and equity assets, added a number of PSU stocks to their schemes in ...
Best small cap mutual funds to invest in 2019  Economic TimesHere is the monthly update on our recommended small cap mutual fund schemes. We are happy to inform you that there are no changes in the recommendation ...
Forget retirement — focus on financial independence  MarketWatchOne Seattle-area marketing professional told us she has mixed emotions about the word “retirement.” To her, it brings to mind a 70-year-old sitting in a rocking ...
Mutual funds: Best mutual funds to invest in 2019  Economic TimesEveryone wants to invest in the best mutual funds. In fact, it is the sole reason why many investors keep on postponing their investments forever. Most mutual ...
The road to wealth creation is paved with smart investments  Economic TimesEquity, hands down, is the best asset class to help you create wealth.
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds garnered Rs 8,022 crore of its assets by way of SIPs in December 2018, 29 per cent higher than the previous year | Illustration: Binay Sinha ...
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
Best large cap mutual funds to invest in 2019  Economic TimesLarge cap mutual fund schemes, as the name suggests, invest in stocks of very large companies or stocks with largest market capitalisation.

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

Adding Funds

Someday you may want to retire and continue to live... Read More

How to Short Stocks? How to Make Money when Your Stocks Go Down by Shorting

The stock market can present you with a lot of... Read More

You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

Downdraft

For the year 2000 we have seen hundreds of mutual... Read More

How to Find Value in No Load Mutual Fund Investing

What are you thinking when it comes to your no... Read More

A Personal Stock Market Investment Philosophy

∙ Make every investment in the stock market a long-term... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to... Read More

Its Better

Question: How does it get better when it gets worse?Last... Read More

Defining a Long-Term Investment in the Stock Market

For some "long term" would mean holding a stock position... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Market Timing

Every broker and financial planner will tell you that you... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

Time Out

Are you paying any attention to your retirement savings? Do... Read More

Take The Time

You must take the time once a month to review... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

Fake Money

Reach in your pocket and take out that big roll... Read More

Paddle Your Canoe

At some time in your life you have been on... Read More

The Club

Yesterday I received my monthly issue of MONEY magazine. This... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

Trade Stocks for Real

I read a comment by a forum member on another... Read More