Stock Analysis

I receive emails from Morningstar. This company provides statistics and analysis of just about every publicly traded stock company you can think of as well as voluminous information on mutual funds around the world.

You can ask them about a company's sales, management, marketing plan, their performance within a corporate sector, ratios of all kinds, etc, etc. The have it. After you have gleaned all these facts and analyzed them there is still one unanswered question. If I buy this equity will it go up? You definitely will not get that answer and that is the only answer that means anything. It is the bottom line for all research.

Brokers and financial planners use this type of service to determine if a stock or fund is a "good" buy. When it comes right down to it you must ask, "If I can get this information then so can everyone else so why is it any good?" It isn't. After you have been doing this a few years you will find that it is a useless exercise. Brokerage firms want you to do it so that if the stock goes down they can say to you that it was your decision to buy it based on all those "facts". Yes, you had all that information, but it is nothing more than disinformation.

They tell you that every conservative investor does his homework, his research. The term conservative investor is an oxymoron, like military intelligence or honest politician. There is no such thing as a conservative investment if there is the slightest possibility that you could lose all or part of your money. And that is true in just about everything whether it is stocks, bonds, real estate, collectibles, you name it.

Their ad stated that every month they would have information on the best and most popular mutual funds. Since when has popularity got anything to do with a stock or a fund going up? Fidelity Magellan is one of the most popular mutual funds in the world yet it dropped from $145 to $73 (a 50% loss) and is now trading at $100 still down 31%. Janus Balanced Fund dropped from $25 to $17.50 and has since rallied to $20. TR Price Japan Fund hit a high of $16, fell to $5 and is now $8 still a 50% loss. Did any of their "information" ever tell you to sell? Popularity is not a yardstick for profits.

And they also will give you the hot picks of 150 analysts. You might as well use a dartboard as listen to those guys. They are high priced guessers who put you in and never get you out when something starts down. Morningstar is providing you with information. The information is not worth the paper it is written on.

Their facts are useless even though they are facts. Bottom line: research is worthless.

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

In The News:

Top 10 large, mid & smallcap stocks MFs bought in April; do you own any?  MoneycontrolMutual fund (MF) inflows moderated in April even though Indian stock benchmarks rewrote history. The Sensex touched a *fresh* record high of 39,487 on April 18 ...
Your investing technique is successful only if you meet your money goals  Economic TimesFollowing the right processes plays an important role in achieving investing success, but it is not enough.
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 ...
Vetri Subramaniam, UTI Mutual Fund, talks about which stock segments he favours now  Economic Times"We think rising consumption and changing patterns of consumption accompany the positive long-term expectations for economic growth and incomes in India."
India’s second biggest fund house busy lapping up stocks that are down 45-72%  Economic TimesICICI Prudential Asset Management, the country's second-largest money manager by assets, was busy all through April lapping up beaten down stocks, when ...
Time to shop? 150 stocks at attractive valuations vs historical levels  MoneycontrolMore than 50 percent of our broad market universe, that's roughly 150 stocks, have reached the bottom 30 percentile of their historical valuations, Sahil Kapoor, ...
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.
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.
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.
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 ...
Trick is to look beyond crowded bets as market due for rebalancing  Economic TimesPolarisation within the Nifty pack suggests the time is ripe to go for some rebalancing.
Pankaj Pandey of ICICI Direct on near-term outcome for markets after elections, investment strategies, global markets and more  CNBCTV18The markets rallied in opening on Monday after exit polls suggested the election will give a clear mandate for the BJP-led National Democratic Alliance. Pankaj ...
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 ...
CARE lowers Reliance Capital’s creditworthiness  Economic TimesMumbai: Rating company CARE over the weekend cut by a few notches the creditworthiness of Reliance Capital Ltd (RCL), the diversified financial services ...
How Vanguard Patented a Way to Avoid Taxes on Mutual Funds  BloombergControversial heartbeat trades help the funds avoid taxable gains.
Want to invest like Warren Buffett? Here are the ins and outs of buying preferred stock  CNBCBillionaire Warren Buffett is a master when it comes to investing. The Berkshire Hathaway CEO is famous for buying and holding stock — and not giving in to the ...
Best And Worst Q2 2019: Financials ETFs And Mutual Funds  Seeking AlphaThe Financials sector ranks first in Q2'19. Based on an aggregation of ratings of 427 stocks in the Financials sector. FTXO is our top-rated Financials sector E.
7 High-Dividend Mutual Funds to Buy Now  U.S. News & World ReportHigh-dividend mutual funds are a popular choice among people seeking to receive current income on their investments. "In good economic times, dividends ...
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayBanks have traditionally been the most preferred sector for fund managers. Equity mutual funds having the highest ever holdings of Rs 2.6 lakh crore in banking ...
Stick to largecaps, buy financials, consumption stocks on dips: Jinesh Gopani, Axis Mutual Fund  Economic TimesStick to the few stories which are growing and be careful on the portfolio, says Gopani.
Credit risk funds structurally still have the potential to offer excess returns over market returns: Axis MF  MoneycontrolFixed income investors have been going through uncertain times. Investors in fixed maturity plans of two mutual funds have not been paid in full on the due ...
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 ...
IT, bank stocks in focus as MFs raise stake in 185 companies in March quarter  Moneycontrol.comMutual funds raised stake in as many as 185 companies while reducing in 178 companies in the March quarter, according to the shareholding data declared by ...
Mirae Asset launches its first equity focused mutual fund  LivemintMirae Asset Focused Fund, an open-ended equity scheme, will be investing in a maximum of 30 stocks.The fund manager has the flexibility to invest across ...
Midcaps or smallcaps post May 23? Over 400 stocks fell 10-80% in 2019  MoneycontrolMidcaps or smallcaps? This is the age-old question investors face when it comes to investing. The wounds are still *fresh* after the last year carnage as more than ...
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.
Market Live: Sensex zooms 1,081 points; Nifty climbs 317 points as Exit polls predict Modi's return  BusinessLine12.45 pmMarket feedback post Exit Poll by Mr. Abhijeet Bajpai, Co- Founder - Avighna Trades: "The exit poll results are out and the market reacted positively as ...
Mirae Asset Focused Fund - A new focused equity mutual fund in the multi-cap space  LivemintThe NFO or new fund offer of the Mirae Asset Focused Fund has opened for subscription. The NFO will close on May 7. The fund will invest in a basket of 30 ...
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 ...
Not a big jump, upcoming rally will be a very gradual steady market move: Porinju Veliyath  Economic TimesWe will see a very impressive cycle of the broader market rallying for next two-three years at least, said Porinju Veliyath, MD & Portfolio Manager, Equity ...
Principal Mutual Fund launches small cap fund; offer to close May 6  Moneycontrol.comPrincipal Mutual Fund on April 22 launched an open-ended scheme predominantly investing in small-cap stocks, Principal Small Cap Fund, according to a press ...
5 Best-Performing Tech Mutual Funds of the Twenty-Tens  Yahoo FinanceDespite overvaluation concerns, the U.S. technology sector has had a stellar rally in the period between 2010 and so far in 2019, also popularly known as the ...
3 Money Lessons I Wish I'd Learned When I Was Younger  NasdaqThere are lots of lessons that we end up wishing we'd learned earlier. For example: Taking care of our health is important, saying "yes" more often.
Stock market maven reveals success secret  Telegraph IndiaGumption, gut-feel and the gonads to back your convictions when the chips are down: those are the attributes that a market professional needs to have to come ...
Hotshot active fund managers will soon have a way to play the ETF game  CNBCA new kind of exchange-traded fund is expected to grant active money managers a way to offer their strategies without divulging their stock picks and methods, ...
Can You Invest Your 401(k) in Individual Stocks?  The Motley FoolOne of the biggest disadvantages of 401(k)s is that you're usually limited to a few investment options that have been selected by your employer and may or may ...
Validea's Top Five Healthcare Stocks Based On David Dreman - 5/19/2019  NasdaqThe following are the top rated Healthcare stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman ..
3 Hot Goldman Sachs Mutual Funds to Grab Now  NasdaqGoldman Sachs Asset Management (GSAM) has been offering financial services, including investment and advisory solutions, and risk-management.
Balanced fund smackdown: Old-guard mutual funds versus upstart ETFs  The Globe and MailA well-chosen balanced fund is the simplest path to investing success. Nothing else comes close because balanced funds are well-diversified portfolios you ...
Financial Ground: The Pain Of Mutual Fund Taxes (and how to reduce it)  Ravalli RepublicToday, I would like to talk about open-end mutual funds - specifically when a person does not own them inside a retirement plan account or another tax shelter.
Top stock picks from the biggest hedge funds and mutual funds  The Globe and MailA roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web. Citi U.S. equity strategist Tobias Levkovich compiled 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.
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 ...
3 Expenses That Can Eat into Your Retirement Savings  The Motley FoolApproach retirement with your eyes open -- or you may end up hundreds of thousands of dollars short.
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 ...
IIF: Trade wars prompt flight from China stocks  Investment MagazineThe IIF says escalating US-China trade tensions was the reason behind the capital flight from the emerging markets in the recent weeks.
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 ...
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.
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 ...
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 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 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 ...
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 ...
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.
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 ...
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.
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.
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, ...
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 ...
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.
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, ...
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
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 ...
We have beaten our benchmark by 2.5% annually since inception, says Atul Kumar of Quantum MF  Economic TimesWhen the market goes up and the stocks seem overvalued, above our limit, we sell those stocks. And in a rallying market, it is difficult to find other good stocks at ...
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 ...
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.
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.
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.
Which mutual funds are good to invest Rs 25 lakh for 10 years?  Economic TimesWhich is the best way to invest Rs 25 lakh in a mutual fund. I don't need the money for the next 10 years. I am happy with 12% returns. And what are the funds I ...
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 ...
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 ...
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 ...
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.
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.
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.
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.
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.
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.
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.
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 ...
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.
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 ...
Shariah-compliant investments through mutual funds  Economic TimesWithin the mutual fund industry, investors have a choice of two equity-oriented schemes and one gold scheme that are shariah compliant.
Best multi cap mutual funds to invest in 2019  Economic TimesHere's the monthly update on our recommended multi cap mutual funds. In May, there is a small change in the recommendation list. Since Mirae Asset India ...
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.
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.
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 ...
Inflows to equity funds slow for third straight month in Jan at Rs 6,158 crore  Economic TimesSluggish returns, volatile equity markets and India's complex political situation are having a bearing on investment flow into domestic equity funds. Inflows into ...
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 ...
What is Smallcase? Should you invest in stocks via these?  Economic TimesOne invests in the market either by buying individual stocks through a broker or by putting money in equity funds or exchange traded funds. Brokerages are now ...
The road to wealth creation is paved with smart investments  Economic TimesEquity, hands down, is the best asset class to help you create wealth.
These stocks see mutual fund inflows for 8th straight quarter; are they worth a look?  Economic TimesAt least 20 listed stocks on the BSE have been major beneficiaries.
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.
10 small equity mutual funds that have given very good risk-adjusted returns  Economic TimesMany small-sized funds have delivered handsome risk-adjusted returns. Find out why you should not ignore them.

Keep Your Profits

It looks like we have now entered a new bull... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

Stock Market Education; Day Trading for Beginnners; How to Pick Stocks

The trading method you employ to approach the stock market... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Finding A Good Stock

One of the things people are always asking me is... Read More

Mid-Cap Stocks: Asset Class with an Identity Crisis

Much like the middle child, mid-cap stocks have long struggled... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

Frog In The Pot

You remember the story about the frog that was put... Read More

Investment Capital Gains

Have you bought any mutual funds this year or late... Read More

Being Wrong Buying Stock is Okay

Being wrong is OK, but let's not carry it to... Read More

Stock Valuation using the SMP Model

Disclaimer: Please note that I do not necessarily purchase, own,... Read More

Bottoms Ups

If you have talked to a stock broker or financial... Read More

Risk Control

Everything you invest in has risk so you want to... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

DIY Portfolio Management

Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More

Stocks & Oil, Sat Jun 18th, 2005

Both the stock market and oil prices rallied recently, which... Read More

The Club

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

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Inertia

One of the basic laws of physics is that a... Read More

Evaluation II

As I said in Part I everyone in the insane... Read More