I received the following email from Mr. Jyoti Kumar, Director- Development (Co-founder) at Bazaar Analysis Pvt. Ltd on LinkedIn (blue text within the message is mine)
I read your article
I was really surprised by the figure
...for 15 years will have returns ranging from 15.8% – 5.4% to 15.8% +5.4%...
(Context: Long term stock returns. "68 out of 100 investors who have stayed invested for 15 years will have returns ranging from 15.8% – 5.4% to 15.8% +5.4%.")
We have also reached to close to the same figure but in a different approach. We have a tool PortfolioBuilder using which we ask users to select 20 stocks from list of BSE500 (with certain condition of diversification) and we analyse the 5 year returns of selected stocks.
Tool provides two kinds of return
Spot means investor had bought those stocks 5 year back and just held the same (APS has some service associated for buying selling alerts).
Your analysis is close to Spot concept and we have found even for last 5 year data users get on an average 14% return with +/-5% variation for 80% users. Actually, this tool is open on website ( http://www.SafeTrade.in/PortfolioBuilder.aspx ) and anybody can use it.
We log the results and get average statistics on the same data.
Thanks for Your Article!
Investors with experience in stock picking may find this interesting/useful. Newbie stock investors can also use this to test their choices.
- The tool does not work with Firefox. Use IE or Chrome.
- I am sharing this because I find it interesting. This is not a recommendation. There is no monetary gain involved for me. If you are interested in using their paid services, please be sure to make an informed decision.
What do you think about such tools? Do you know other online tools like these or ones better than this?