I was following the Money Pechu youtube channel for some time, in which the economist Mr. Anand Srinivasan suggests the stocks to buy (or not) with his rationale. The guy seems to be well versed in the market and looks like a disciplined investor. He is investing since decades and ecourages everyone to invest. His philosophy is that everyone can get rich by following disciplied living.
On the other hand, Mr. Buffet told that more than the 90% of the fund managers don’t even match the market - source. As Mr. Srinivasan also kind of a fund manager suggesting stocks, I’m here attempting to evaluate the effectiveness of his suggestions.
Evaluation Method
- I try to fetch all the suggestions he is proving beginning 2024-Jan-01.
- Sensex returns 15.5% for the last 20 years period. This will be used as a benchmark.
- If the suggested stock grows at least 15.5% YoY after/within 3 years, the suggestion will be considered as successful. Failure otherwise.
Progress Tracking and Outcome
The analysis can be found »here«.
It will be updated on regular interval. Stopeed tracking because of the following reasons.
Critics
Frequency:
There is about one video per day, summing up 365 videos a year, which is a lot.
In an year, definitely there is not 365 buy/sell opportunities. If it is so, then it is trading attitude.
Any video which reiterates previous things OR not adding any new info is a clutter. These clutters reduces the quality dramatically.
Missing out few videos might also mean missing out buying opportunities or bearing losses due to missing out selling. Basically the videos mandates the viewers always in the toe of watching them, which I find it unpleasent (as an invester view).
Imo, If there is nothing to say, it is better not to say anything!
Promotion:
A typical video duration is 10mins, of which 2mins are for the promotion at the beginning and at the end.
20% of the time is being spent on the promotion, which is too high imo.
Emotional Stimuli:
Many videos are titled such as “Buy now OR you will regret forever”.
These are purely emotional driven click baits.
May be that he wants to stress the importance, but the occurrence of such things are higher in the video.
Suggestion
Perhaps I want that Mr.Srinivasan maintains an xl like this and keep it open for public in addition to the videos. This would serve as a better way of reflecting one’s thought and easy for evaluating the decisions made in the past.