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See that couple running down the beach in the stock broker's commercial? Fuckers, how come you're down 20%?
As the discount brokers attempt to get more and more into advise, a real straightforward strategy for them:
Make portfolios of their successful investors available to others to emulate,
without disclosing their names of course.
So rather than choosing a specific mutual fund you'd select to "follow the guy that's been getting 15% year over year".
Like mutual funds, the portfolios could be rated for risk levels and age appropriateness.
Investor Herding Instinct
[DrBob, Jun 10 2005]
Bedlam Asset Management, .pdf document
(Go to Page 3 - F is for Follies) Past performance is quite often a good guide to future prospects. [DrBob, Jun 13 2005]
Covestor.com and others
Apparently several similar initiatives have been funded. [theircompetitor, Jul 23 2008]
techcruch article re: KaChing
KaChing [theircompetitor, Dec 16 2008]
[theircompetitor, May 05 2009]
Hedge fund using twitter sentiment for trading strategy
[theircompetitor, May 18 2011]
Robinhood app for this kind of investment strategy
[theircompetitor, Apr 18 2013]
I'll have what Ziggy is having.
This is what came to mind, when I saw the idea name. [goldbb, Apr 20 2013]
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||Don't brokers and fund managers keep their investment strategies under wraps? After all if I knew how Fidelity invested the Special Situations fund and could follow them, then I too could be making 50%+ out of their expertise.
||It doesn't work, tc. The moment everyone starts investing in 'hot stocks', the price goes up and the yield goes down. The herding instinct is a self-defeating strategy where market investments are concerned because it means that you are buying stocks when they are at or near their peak price and selling them again when the price falls.
||DrBob, I beg to differ. I'm talking about following the hypothetical investment strategy of a long term independent investor, not the guy who's 10% up this month. It could be rated just as funds are -- performance & risk rating over multiple years -- and could further even be blind (i.e. without me knowing the details of the portfolio). The portfolio itself could be primarily fund driven, too -- the point is simply that I'm following someone who's good at it -- not much different than buying Berkshire stock.
||What is the advantage over buying into a managed fund?
||Cost could be one. More advise options are an advantage as well.
||So this system, with all the various bargain charges & commissions involved in making changes to the portfolio, will be cheaper?
||"fat smelly bald fairly drunk guy inexplicably and somehow surrounded by hot babes"
||Love is blind...but it loves the feel of a crisp banknote.
||I like this, from the perspective of a moderately successful investor. If people were inclined to follow your purchases, then the value would automatically increase a bit just because you purchased. This leans towards market manipulation, but not so much as to call it illegal. +
||This is not only Baked, but a thriving growth area in the market. If you want to know more, I could have one of our salespeople call you.
||Ah well tc, if you're talking about investment strategy then I agree. The use of the word 'portfolio' in the idea was a bit misleading.