Prudentequity.com stock advisory services review

Just because it is too much.

 

On prudent equity, I can vouch that their performance page contains ALL their stocks, good and bad. You can find that current mkt price of their closed calls themselves are further up multiple times from their sell price. They found these gems early and were also early to exit. Their Focus is to multiply the portfolio than bragging about multibaggers. At cmp, almost all stocks are multibaggers.

BTW all stock advisors have their plus and minus; it is who, who openly admits their mistakes and learn quickly from those mistakes and corrects those mistakes, can have a long life in the stock market. Ask your stock advisors before subscribing to their service, on what mistakes they committed so far. You will yourself know who can be your trusted stock advisor. It is our own money and we need to take full responsibility for our actions in the stock market. If you find your stock advisor not matching to your wavelength, cut him off immediately even if you have paid for full year. It is your hard earned money.

In my experience, PE is the most original, best performing advisory. Even Katalyst Wealth is worth it in terms of originality and responds to customer queries. For me, past performance return is secondary but I value originality, investment philosophy/style/process the critical and whether this adapts to the continuous learning that market teaches. Even warren buffett learns something new every year even now. Check if your advisor is also learning and what he learnt in 2015 when compared to other years. You can easily pick your advisor.

 

Hopefully the taxmen dont get hold of your post...you could get into trouble

 

You nailed it bro

 

Mr. Prathak, no trouble at all, because I never evade any legitimate I.Tax. All the short term gains are shown in my Income tax return.

 

That is very good attitude. I also pay full tax on income.

 

PE is being pulled up for no reco for 3 months but Alpha Invesco has no reco since Feb 2015 as per their blog:

Why We Didn’t Add Any New Stock To Buy List Since February 2015
Chetan Phalke|September 9, 2015


Why there are no new stock recommendations since last 8-10 months ? When are you adding a new stock ? Kuch naya hai kya ? What are the new midcap stocks to buy now ? These are the most common questions we are getting from our subscribers & readers lately.

We have not added a single new stock idea to our portfolio since February 2015. And many of our readers are getting restless on when the new stock recommendation will come. Let me give you a clear perspective on why our approach has been a little passive through 2015.

Alpha is also saying that Almost all stocks on BUY list have under performed over the last 12 months and are still trading at the same valuations as they were a year back.

This is very very honest statement by Alpha. NOBODY ADMITS THAT STOCKS RECOS HAVE UNDERPERFORMED. WE HAVE TO GIVE FULL MARKS TO ALPHA Invesco for this.

So, we cannot pull up PE for no recos because there is no MOS at present. We have to trust expert for timing or go for model portfolio and DIY.

 

Most of us investors here read Graham's Mr.Market story. The stock advisory industry has set a wrong precedent of recommending something every month, not making use of Mr.Market as a servant. That's the reason subscribers hop from one advisory to the other, when they enter few stocks at wrong time and suffer 20-30% loss just in months after buy. Time that this industry changes its method. Also subscribers need to change their expectations, not to lose their hard earned money. In current model, They are unknowingly doing monthly SIP now - SIP works well on diversified/index funds and not on random stocks.

If subscribers and their advisors follow value investing principles (buying stocks with competitive advantage at reasonable/low valuations with sufficient Margin of safety), they may find dearth of stocks during market peaks and not enter it at wrong time, thereby protecting their capital.

Can the stock advisory industry wake up? For a stable healthy market without significant FII induced turbulence, India needs retail investors to participate in large numbers like in developed countries like US. For this, we need lot of independent stock advisors to support retail investors in doing direct equity investment. (Of course, mutual fund exists but for its exorbitant charges/cost structure).

 

Alpha has made another good point:

It is extremely easy for us to add 20-25 new midcap stocks every year from a services point of view. 4-5 will anyways workout in a market like this! But then it is next to impossible to create sustainable wealth over a long period by doing it. What’s the use of any service / advice, if investors are not able to build a portfolio by using it. To be able to create a portfolio, investors have to focus on very few stock ideas & make sure they get enough time to accumulate those stocks over a period of time.

If anybody has Alpha subscription pl give review. I am feeling very tempted to join because of honest approach.

Alpha has also discussed three stocks with good potential KRBL, Take Solutions etc. They also have hall of shame about stocks that they missed / lost heavily. Very honest outlook different from others.

 

Hi srouta, my suggestion is that if you like a stock advisor's approach/style, it is better you talk to that person directly and if convinced, try the service yourself. Reviews and experiences of others may cause confusion. In stock market, Every individual is unique and every person's experience/learning would be different (like elephant and 4 blind man's story).

Alpha based on what I know, follows a concentrated portfolio approach, looking for handful long term secular growth stocks capable of growing 5-10x in years. I sense that it follows buffett way/portfolio book kind of style. One needs to be patientful and could experience boredom that one may not see portfolio churn frequently, nothing new periodically etc. Just add on to same set of stocks as the underlying companies keep growing. Risk here is that not every stock would exhibit secular growth, leading to misses. how sooner misses are spotted and positions exited to minimise loss is also a risk to performance. Upside comes if atleast few stocks deliver as expected. Only people with long term association (3-5 years) can join them due to their investing style/approach. Very good honest advisory.

 

In India, stock advisories publish their success stories in the form of multibaggers they identified. What matters to me as an investor is how much my capital would grow. Portfolio return is important. That too, yearly performance like MF performance. Seen some showing CAGR with base year in 2012 etc instead of giving last 1yr/3yr/5yr/inception performance.

Anyways we as customers can pose these questions including questions on their style and approach, to them before choosing an advisor. Otherwise we may be cheated by their marketing. Dont go by past performance alone.

 

SEBI can regularise performance reporting method by its registered/certified stock advisory companies.

 

I think there should be audit by reputed CA firm so that one can believe the numbers otherwise it just Ram Bharose!

 

@Srouta Mukherjee

What I had found was that Alpha invesco is SEBI registered Invesment advisor, whereas Prudent Equity Mr.Siddhart is SEBI registered Research Analyst.

SEBI requires firms to be Research Analyst for advising on stocks as the exam focuses on fundamental analysis. I was not confident on Alpha invesco because now their focus is few stocks, which is good. But what if that few stocks come out to be the Hall of Shame, all my years get wasted.

Currently I am looking forward to SaralGyan, but not yet sure.

 

If PE is reading this (as claimed) then he should get audit done of 61% gains. This will silence people who are posting against. Only issue is that audit may be problem as in the case of Alpha Invesco with no returns since Feb 2015 (as disclosed by them that there is under performance). I think nonperformance is why Alpha is offering subscription till 2020 for 20k (i.e. 5k per year).

 

I think best course is DIY with Model Portfolio of top brokerage/ investor. Sharekhan Model portfolio has given 30% CAGR for 5 years which is very very good return.

 

@Srouta Mukherjee

Well model portfolio's are good, but when free services come into picture they don't assure you returns. At least if we subscribe to PE or SaralGyan or any other, they will give some assurance and would like us to be subscribed with them for n years. I did a comparison between both of these firms in terms stock performance, attached are the picks.

SaralGyan- recommends 2 stocks monthly in hidden & value pick, plus they have diwali offer, multibagger, new years picks- so i feel i can do my own analysis and choose the stock. They diwali portfolio of 1yr always give good returns. Cost 10k

PE- only recommends average 12stocks a year, so not much choice but performance is good, 95% accuracy. Cost 20k

 

Are you sure it is 30% cagr for 5 years? Cagr?? If so, very good performance. I too have account in Sharekhan but missed it - do they share model portfolio? I saw MOS sharing it.

 

As per sharekhan research report of March 15, the absolute return since jan 2009 is 413.5%. I think it was 430% in April but can't locate pdf. The CAGR is about 27% or so for 7 years.

https://webcache.googleusercontent....015.pdf/SavePdf.htm+&cd=1&hl=en&ct=clnk&gl=in

 

No it is about 27% cagr for 7 years as per sharekhan report referred.