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Hot stocks or hard knocks: Which publications had the most successful stock tips in 2024?

By John Choong

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Are share tips worth it?


Want to know which share tips are worth listening to? And which economic forecasters are best left ignored?

In an industry first, Investing Insiders have identified the financial experts that it pays to put your money behind. Check out our 2024 independent analysis of almost 500 share tips from 11 investing websites and platforms.

What does the data tell us?


The data doesn't make for good viewing. If you regularly base your investments on share tips given by the big-name publications and platforms, then you may be in for a shock.
On average this year, the platforms we've featured in our analysis have yielded poor, single-digit returns that have underperformed both the FTSE 100 and S&P 500. In the case of Love Money and IG, they have even lost investors money.

That being said, there are some providers and publications that bucked the trend. The likes of The Sunday Times, The Motley Fool UK, and Hargreaves Lansdown doing better than the median average. However, even when recommendations are producing returns, there is still a big problem: all platforms, on average, are still underperforming the S&P 500 — that measure that many deem to be the definitive stock market benchmark.

There are, in fact, only two investing websites that have outperformed the FTSE 100 — one of them is ourselves here at Investing Insiders, and the other is the Investors' Chronicles. When considering that our own share tips only consist of UK shares and not any US stocks (which have performed much better), we take plenty of pride in being one of those two and bringing value to our investors.

If you're interested in seeing how we did that, check out our copy-trading portfolio on eToro. You’ll find all the details of what we’ve invested in, and how we’ve made our returns there.

What is a share tip?


Share tips, sometimes known as stock recommendations, are a common feature on many financial websites and investment platforms. They tend to consist of buy/hold/sell recommendations on a specific stock from analysts and experts from specific investment websites or platforms. The general idea is to help retail investors better navigate the complex investing landscape by providing share tips that will benefit their overall portfolios.

At Investing Insiders, we understand that investors often refer to these share tips to make their investments. However, not all share tips are made with the same risk tolerance and investment horizon in mind. Plus, it can be challenging to determine the legitimacy and effectiveness of these recommendations, especially over the long term.

As such, our team decided to track and monitor the share tips provided by the UK's top investing websites and platforms and measure their overall performance. After all, there's not much of a point in taking share tips if they end up underperforming the overall stock market, and you end up racking up tons of extra costs when you could've just invested in an index tracker fund instead.

How we measure performance


To measure the performance of each share tip accurately, we employ a straightforward methodology. Quite simply, we record the closing share price of the share on the day the share tip was made. If the share tip is made over the weekend or bank holiday, the next business day's closing price is used. From there, the performance of each share tip is essentially the difference between that price and the closing price of the stock today or when the analyst, platform, or website recommends selling the stock.

It's crucial to note that the performance measured does not account for dividends. Therefore, returns are not accumulative, and actual returns may be higher than the figures presented.

Aside from that, when calculating each investing website's or investment platform's average performance, we use the median average return from all of its share tips rather than a mean average. This is because the median is less susceptible to extreme outliers, as it represents the middle value of the dataset, providing a more robust measure of central tendency. By using the median average, our calculations effectively mitigate the impact of any outlier share tips, resulting in a more accurate representation of a platform's overall performance.

Nonetheless, it's important to remember that past performance is not necessarily indicative of future returns. The stock market, as well as the performance of individual shares, is inherently unpredictable, and even the most successful share tips may experience periods of underperformance.

Ultimately, our aim at Investing Insiders is to provide investors with objective data to help them make informed decisions. Investing always carries risks, and we encourage individual investors to always conduct their own due diligence before acting on any share tips or recommendations.

How we compiled the data


The data in the above graphs include the latest performances of 11 of the UK's most renowned financial websites and investment platforms which are known to give share tips. Performance figures are updated weekly.

The data, however, is relatively new as the dataset only goes back to January 2024, when we first started to compile the share tips. But given that investing should be for the long term, we plan to continue tracking these share tips for the months and years to come.

Which share tips are selected for the dataset?

Only share tips that are exclusively equities and listed on the London Stock Exchange as well as the New York Stock Exchange are included in the dataset.

Mutual funds, ETFs, cryptocurrencies, options, and any other security types outside equities are excluded from the data set. For example, Vanguard's FTSE 100 Acc. ETF is excluded as it's a culmination of shares within a fund.

What fees are included in the performance data?

The performance data quoted is not inclusive of any fees. This means that fees such as an investment platform's annual management fee, commission fees, FX fees, and any other fees may have an impact on the final return of a share.

FAQs

As of the latest data, share tips from Investing Insiders have yielded the best results, outperforming the FTSE 100.

Based on the data gathered, share tips from investment platforms and investing websites tend to underperform both the FTSE 100 and S&P 500 on average.

In the year to date, Daily Mail/This is Money's share tip made on 10th March 2024 to buy Zoo Digital Group (LON:ZOO) has yielded the highest return, with an astounding performance of over 150%.

In the year to date, Daily Mail/This is Money's share tip made on 10th March 2024 to buy Destiny Pharma (LON:DEST) has yielded the lowest return, with an underperformance of -60%.