At the same time, it is difficult to understand how physical recording and reporting of investment decisions will help improve performance. First and foremost, any investment decision can only be judged in hindsight. No matter how scientific or logical the decision-making process might be, all that matters in the long run is whether the scrip appreciates or depreciates. For an investor, this is the only concern. More fundamentally, the directive assumes that there is a strictly defined science that ensures investment success.
Nothing is further from the truth.
Consider the basic concept of a research report. If you read an analyst' report on Infosys dated eight months ago, and another dated Friday, there will be very little difference from a factual point of view. Both will say that the company is excellently managed, consistently delivers attractive financial and operating ratios, and has great growth prospects. Yet, today's price is nearly 50 per cent lower than it was at the peak. Investment has less to do with actual facts and more with interpretation of those facts.