Any theory proposed in science is considered valid if the same experiment is repeated by a different set of people in a different place yields the same result. Once a hypothesis is proven beyond doubt, no one is entitled to claim the credit but should be happy, if they could prove the trustworthiness of the hypothesis and the conditions in which the same tests can be conducted to derive the same set of results.
Vivekam has been a strong advocate of saying “Investment is a Science, and not an Art”. If that is so, stocks identified by Vivekam, to be undervalued growth stocks, should theoretically be appreciating more than index for any comparable period. However, going by the stated principle of Vivekam that every company’s results are reviewed once in three months, the maximum duration that this hypothesis can be tested against should be three months are less.
Vivekam wishes to set its record straight by periodically coming out with the test results of its hypothesis, notwithstanding the fact that they could be wrong at times, to instill confidence among its followers and supporters. This topic has already been covered in this blog under the title “Litmus test for advisors“. As a follow-up to that article we now intend to cover the period from October 1, 2013 to November 6, 2013.
There were 24 working days in this period which means Vivekam must have come up with 240 choices at a rate of 10 stocks per day. We went on to check the maximum appreciation recorded by each and every stock recommended from the date of recommendation till November 6, 2013 and compared it with the peak appreciation recorded by index during the same timeframe. If the appreciation of stock is more than that of index, it is considered a success and a failure if it is otherwise. SPOTS service from Vivekam will enable any investor learn about top 10 stocks recommended by Vivekam on a day of their choice. Above table showed the top stocks for the days and the appreciation recorded by the same stocks along with the maximum appreciation recorded by index. If you wish you may compare any other day of your choice or ask as to provide the information of the day or days of your choice.
We are delighted to present the facts stating 204/240 stocks have appreciated more than index in this period which means an overwhelming 85% of the choices given by Vivekam have beaten the index fairly. We wonder whether there are any better mechanisms in place in India at this point of time to match this performance, if not beating this performance.
At Vivekam, we are committed to continuing to innovate more and more processes to use in the investment decision making of investors and help them manage their portfolios effortlessly and effectively. A small pat from you is all that we wish to get in return. We stand committed to raise the bar of service to the investing community and wish not to be compared with other stereotyped institutions and processes being followed by them.