This question is often asked by members:
"Which are the best stocks to buy
I never reply to such queries.
There are a few reasons for it.
1. It spoils the forum's structure.
If someone answers such questions and gives 5-10 picks, other members will cross-question him and will also suggest their picks.
The thread will go something like this..
Which are the best stocks?
RIL, NTPC, BHEL....because...
Why not Larsen & Toubro...?
BHEL or Larsen...?
I think ICICI is better...
I already have ICICI..should I average..and at what price...?
ICICI is good for long-term. but Bank of India is better for short-term..
I don't like banking, but I like Infrastructure...
I prefer midcaps, so I like JP Associates...
How is GMR compared to JP Associates...?
What price should I buy GMR at...?
blah blah blah...
In the end, the thread will discuss every second stock listed on the NSE and there will be 10000 buy/sell recommendations.
The end-result will be a thread that no one will really benefit from.
That is why I prefer to segregate discussions of individual stocks in separate threads
2. There is nothing like "best stock" in the market.
I may sound like a boring financial planner, but the fact is, each individual investor has a different goal.
time frames are different...
Some are looking for short-term gains, some have an investment horizon of 3 years and some may want to hold a stock for 20 years.
risk appetite is different...
A young investor may be willing to take a much greater risk than someone who has just taken VRS.
The "best stock" for each individual investor is different.
Most important reason:
3. Not everyone is qualified enough to recommend "The Best Stocks"
At least not me.
Only those who track majority of the stocks
are qualified to recommend "best stocks".
I hardly track 100 stocks on active basis.
If I choose 10 from these 100 and ignore 1000's of other stocks
, my picks are unlikely to outperform the markets by a big margin.
Same is the case with most other members here.
I don't think there is anyone here, who tracks more than 500 stocks... at least not on fundamental basis.
To make money, one has to work hard.
It is true even in stock markets.
You can't expect to make a lot of money by just buying others' recommendations.
If it were so easy, then every stock market investor would have been a millionaire by now...
An investor himself has to learn
to recognise opportunities and trends in the markets.
If an investor feels that he lacks time (or knowledge) for directly investing in stocks, mutual funds
are the best choice for him.