The concept of “buy low and sell high” lies at the root of investing. This concept is true in a sense that investment basics have been the same for hundreds of years. But investment ideas, strategies and techniques have gone through a radical change in the modern times. One of the most common problems faced by investors today is that they don’t know where to start, when and how to invest.
Meetinvest is a great platform where you can learn all the important investment formulae, stock suggestions and invest in the same stocks as the investment gurus. There are lots of investment mentoring services who charge fees, but meetinvest offers a completely free registration for their site. You can check out our interview with Michel Jacquemai, founder of meetinvest from the this link.
What is meetinvest?
Meetinvest is a free social media financing platform which empowers retail investors with a toolkit to invest like a pro. Meetinvest provides you the knowledge for investing like a professional. It’s a stock selection tool screening 68,000 stocks worldwide, across 128 countries, 283 exchanges and compiles 23 strategies by 14 gurus.
Meetinvest links individuals to share experiences, exchange ideas and connect on investing topics including 800 bespoke investment information topics – from stocks to real estate, from art to coins, from stamps to classic cars, from watches to wine. Meetinvest is cross-platform ready with a desktop and a mobile version site. They have also planned to launch a mobile app shortly.
Common Problems Faced by Investors
There are some extremely important issues that the investors need to be aware of. Warren Buffett, one of the most successful investors of the world has warned against investing in markets which you do not understand. If you don’t understand the business models, you shouldn’t be buying stocks in companies. Building a diversified portfolio of mutual funds is the best way to avoid this. In order to invest in individual stocks, it’s important to make sure that you understand each of the companies you’re planning to invest in.
The problems faced by investors and their solutions have been addressed on the ‘INSIGHTS’ section of meetinvest.
1. Deciding on Which Investment Philosophy
Deciding on which investment policy to choose between Passive Investing and Active Investing is a big debate among the professionals. Passive Investing is basically index based. Investing passively means believing that no one can outperform you in the market in a specific timeframe. Active Investing is more manager based and it basically means that the discretionary are trying to outperform the index. The fees charge for actively invested funds cannot really justify for the results.
Combining the best of both worlds, i.e. Passive Investing and Active Investing, rises the better solution – Factor Investing. Factor Investing is formula based. The passive part of factor investing includes mechanical periodic adjustment and the active part includes rule based success factors as selection tool.
However, instead of just replicating an index, buying an index that might be tremendously overvalued, for instance – buying a NASDAQ index back in 1999 when the tech bubble was at its craze, is not really the smartest thing to do.
2. Poor Timing Decisions
Poor timing decisions can be disastrous. The average US equity investor made an annual return of 5% when the investment in index fund produced 9.2%. This problem arises due to the fact that investors are very emotional and in some cases overconfident.
A systematic approach which has been proven to be successful over the years can be implemented during high and low times. Using the selection tool on the meetinvest site, properly timed decisions can be taken. Combining the features of both passive investing and active investing is the best solution to these problems faced by investors.
The power of slow and steady progress is immense when it comes to investment. A disciplined approach will bear better fruits in the long run. If you expect your portfolio to do something other than what you’ve been trained to do, it will result into a complete disaster. It’s vital to keep your expectations realistic corresponding to the length, time and growth to be encountered by each stock.
3. No Access to Professional Information Systems
One of the biggest hurdles for retail investors is that they don’t get the chance to access the same information like the professionals. You can read books and acquire some knowledge, but concrete information is not readily available on the go.
Subscribing to Bloomberg for one year costs you $24,000. Even if you have all the data, you need to calculate and analyze all these information. You’ll need to know how to program investment models in order to replicate the success achieved by the investment gurus.
4. The Story Behind Founding meetinvest
Michel Jacquemai and his wife Maria Jacquemai came up with the fascinating idea of founding meetinvest. Maria is a former journalist and she was very interested in studying investment ideas. One day she brought home a bunch of books, read them and one particular book grabbed her attention. It was written by Susan Levermann, one of the top gurus in the investment industry. In her book, she disclosed all the formulae for screening stocks.
Maria came up with a proposal to program these investment strategies and since Michel was an expert in the financial industry for the past 20 years, with access to Bloomberg, he tried out the program. Amazed with the results, they decided to program the top gurus in the investment industry. They came up with 12 gurus and planned to provide all these valuable information to the people.
According to Michel, “Most of the retail investors do not have access to the formulae, the computing power and sometimes they do not have the adequate knowledge required to excel in this industry”. They decided to empower the retail investors on a global scale and make sure that these investors have the same information as the professionals. And that’s how meetinvest came into life.
How meetinvest can help Investors?
A new crisis is faced by the financial industry today. This crisis is not financial, but driven by 3D’s of faith. Distrust – Dissatisfaction – Disintermediation. Distrust of the industry leads to Dissatisfaction, which increases Disintermediation to generate “intellectual capital”, which further leads to a DIY mentality.
Survey shows that 45% adults in UK find the information on stock market to be ‘confusing’. 39% adults are interested to invest in the stock market if they had the chance to access quick and easy information.
Retail investors lack the proper understanding of the industry and face barriers of entry. They do not have the required knowledge and are confused about what has worked so far and what has a better chance of working in the future. They don’t know how to execute investment strategies and banks or brokers charge a lot for implementing these ideas. Most importantly, retail investors need a network, a solid platform for communicating and sharing ideas with like-minded people.
Meetinvest is a simplified platform which involves little or no financial jargon. It’s an excellent platform to help the retailers analyze and examine the strategies which have worked and follow the trails of successful investors. Meetinvest offers easy and free access to investment information.
It’s a completely unbiased platform with no chance of internal conflicts. It helps to execute investment strategies. Over and above, meetinvest is a financial social media platform which finds and brings together like-minded people looking for a place to share and exchange their ideas.
Michel and Maria did not have any plans to monetize their idea at the initial stages. Currently the program has been expanded and still the service is free because they are funding it themselves.
Meetinvest provides retail investors the tools to understand WHAT, WHEN and HOW of investing. Michel believes that the tools used by Wall Street professionals should be available to investors all over the world in a simple and easy form and at zero expense.
Meetinvest brings you computer generated information analyzing the success formula of extremely successful investors like Warren Buffet, Benjamin Graham, or Templeton, minus the complex financial jargon. And the users also get to interact with each other all around the world on investment interests.
Investment is an exciting journey with lots of ups and downs. With free and easy access to the right information, an investor can use his skill set and experience to go miles. That’s exactly what meetinvest aims to do – help you make the right decision with the right information at the right time!