Invest Like Warren Buffett With MeetInvest

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Invest Like Warren Buffett With MeetInvest

Positives

MeetInvest is a great concept, easy to use, and the expert based stock screener aspect of the site is a great addition to the DIY retail investor's investing armoury.

Negatives

There's no substitute for doing your own research. Not even the gurus are infallible and MeetInvest's recommendations are only as good as the algorithms they're based on.

Invest Like Warren Buffett With MeetInvest

“We want to empower investors by giving them the same toolkits that the professionals have … [t]he financial world wants to keep this kind of information a secret but we have decided to give it away for free.”  So says Maria Jacquemai, MeetInvest co-founder.  Certainly a headline grabbing statement.  Who doesn’t want to have access to Wall Street’s secret toolkit?  It’s also a potentially powerful example of how FinTech companies, like MeetInvest, can democratise stock market investment.

So, what is MeetInvest?  Essentially, a free expert based stock screening (picking) tool in a social networking wrapper.

At its core, are over 50 investment strategies codified in formulas (algorithms) derived from the models of around 30 of the world’s most respected investors.  Think Warren Buffett, Peter Lynch, Benjamin Graham, William O’Neill, and Martin Zweig … to name a few.

Each algorithm runs on a daily basis filtering 69,000 stocks across 128 countries, with performance back-tested to January 2000.  Effectively allowing users to ‘replicate’ the stock-picking, buying, and selling decisions of investment legends.

If this, and the fact that the founders of MeetInvest have active portfolios with significant sums invested, hasn’t already sold you on the platform then you’re probably not going to be sold.

For those still reading, according to its founders, MeetInvest’s purpose is to allow members: ‘[t]o easily source and access the most promising stocks and allow users to make better investment decisions.  To achieve that last part, and recognising the risks of blindly following buy / sell recommendations (even those of the gurus), MeetInvest also provides a targeted ‘Insights’ section.  These ‘Insights’ broadly describe the investment strategies underpinning the algorithms, how and when to buy and sell, as well as the characteristics needed to become a competent investor.

And the final piece of the MeetInvest offering?  Social networking features which enable you to interact with other members and further your learning.

Note: Meetinvest is an ‘advice only’ site.  That is, you can’t trade (buy / sell) stocks using the MeetInvest platform.  You’ll need to find your own (online) broker for that.

Key Features

  • Free (completely)
  • Global market coverage
  • User-named stocklists based on proven, back-tested investment strategies across multiple stock markets
  • Share allocation recommendations for each stock meeting the criteria in your stocklist, based on input of the amount you have to invest
  • Daily, weekly or monthly ‘buy /sell / hold’ e-mail ‘recommendations’ for stocks in your stocklists – based on whether the stocks have either met, or failed to meet, the algorithm’s criteria throughout the period
  • Personalised news feeds based on users followed and groups you’ve created or joined
  • Active discussions on shared interests across more than 800 categories

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Best Suited For?

Time poor equity investors with some investing knowledge and who are not willing to hand over their coin to someone else to manage (not even Warren Buffett?!).

Stock picking tools such as MeetInvest are great time savers, provided you don’t forego the minimum due diligence necessary for informed stock market investing.  As sophisticated as the algorithms developed by MeetInvest may be, additional research will always be required.  As a bare minimum, you must understand the reasons you’re buying (which in turn provides the basis for selling).  If not, you may as well give it to someone else to manage.

What You Need to Get Started

Go to meetinvest.com to sign up.  You’ll be asked to enter a username and password, provide limited personal details and indicate your interests.  Interests indicated are used to serve up posts from people and groups that match your selected interests, and later from people you’re following and groups you’ve joined.  Click on the link in the verification e-mail you’ll receive and start investing like Warren Buffett in not itme.

What Others Are Saying

City AM (UK) 7 April 2015:  Users can choose to replicate the behaviour of established gurus: “you can decide what systems you like according to your risk profile,” says [co-founder] Michel. He likens it to “offering people the recipes” – then they decide what they want to cook. And the social element means that, all the while, you can be chatting to fellow investors.

The Daily Telegraph (UK) 12 January 2015: All the investment models are explained using plain English, which is crucial to the MeetInvest model.  According to a study of 2,000 adults commissioned by meetInvest and undertaken by YouGov, 45pc of people find the stock market “confusing”.  Some 39pc also said that they would be more likely to invest in the stock market if they had access to free and easy to understand information.

However, the CIO from a global private bank, who preferred to remain anonymous, warned: “It is not enough to rely on these formulas – you must do your own research, and you have to measure risk. If you’re right, you make money but if you’re wrong you could lose everything.” A spokesperson for JP Morgan Asset Management declined to comment on MeetInvest’s new business model or its consequences for traditional investment firms.

About The Author
lochetic@gmail.com