How to find a good Stock Advisor?

I get a lot of emails and calls from investors who are in loss because of some calls given by one or the other Stock Analyst…. In my view, 3 most important things to look for in a Stock Analyst should be – Past Performance, Past Performance and Past Performance !!

Friends, Numbers don’t lie… This is true especially in stock markets… Talk is cheap, But Numbers Speak…. It is very easy nowadays to make great websites with flashing pictures…. It is very easy nowadays to become famous due to social media…. But from where will we bring Past Performance which can be proved?…. Analyst can write any past performance history on their websites… But where is the proof of those calls?

So if retail investors want to find really great analysts for stock tips, they should ask ‘Proven’ track record… Retail investors should ask for original Facebook screenshots and check whether those calls were given or not… and if yes, how much profit those calls give….. Also check the success ratio…. If an analyst gives 20 calls, one is bound to do well because of the law of averages…. So the most important thing to check in an Analyst’s Track record is – how many total calls he gave in the last 3-4 years and out of those, how much ‘Average’ returns those all calls gave…. If the Analyst’s ‘Average’ returns of the last 3-4 years are significantly higher than Sensex or other analysts’ records, you can be sure that the analyst knows much better about Markets than Others.

Happy Investing !!

Manish Goel

Manish Goel is a Chartered Accountant, SEBI-registered Investment Advisor, and founder of Multibagger Shares. A full-time value investor since 2010, he has helped thousands of investors build long-term wealth through quality stock picking and disciplined fundamental analysis.

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