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yuvaltaylor
A Stock-Picker Subscription Service

We’re floating an idea around the office, and we can’t seem to agree on much about it. I wonder if current users might weigh in.

The main idea is to offer a subscription-based service vaguely resembling the designer models but focused on stock picking. It would be kind of a cross between traditional newsletter subscription services such as those offered on Seeking Alpha—where you have no idea of the actual real-time performance of the service—and the kind of service offered by Collective2, where you can follow the real-time performance, but which is focused on technical analysis and charges an arm and a leg ($99 a month plus they keep 50% of the subscription fees). All portfolios would consist of manually chosen stocks.

Here’s what I think we agree on:

Stock pickers would, using Invest, keep track of every stock they buy or sell. The real performance and certain past holdings would be available for anyone to see. No subscriptions would be offered until the stock picker has six months’ worth of real-time performance. Subscribers would be able to follow the stock pickers’ picks automatically via Invest. There would be no charge for offering a subscription, though it would cost resource units. And, obviously, there would be no simulations.

Here are the big questions we can’t seem to find answers for:

- Would anyone currently using P123 be interested in this? We’re wondering if our users are all like me—people who understand backtesting and data and accounting and performance measures but rarely analyze individual stocks—or whether there are users who prefer to choose stocks manually, and are interested in offering their expertise to paying followers.
- Would stock pickers be required to write about each stock they buy and sell?
- Would stock pickers be allowed to offer more than one service?
- We’ll be offering strict accountability. Will that discourage people who are currently doing a newsletter thing? Maybe they don’t want to be accountable.
- What should it be called?
- What should be the liquidity minimum for offerings? Some of us favor a very low minimum, others want a high one.
- Can we use the current designer model format as a basis for this or should it be completely different?
- Should there be some sort of in-office vetting to make sure we’re offering only reputable services?
- Is anyone interested enough to help us build a prototype?
- Should the blogs be like chat rooms, in which subscribers post questions and the stock pickers answer, all public to subscribers? Or should the blogs be separate and questions be messaged to the stock picker in a separate space?
- How would stock pickers market their service?
- Is “stock picker” one word or two?

Just to make clear, this idea will probably not be implemented in the very near future: we have a lot of things on our docket!

Yuval Taylor
Product Manager, Portfolio123
invest(igations)

Aug 14, 2019 11:21:33 AM       
Jrinne
Re: A Stock-Picker Subscription Service

I would probably recommend against too much human "analysis."

I would go with something like Vanguard’s "Analyst Opinions." These are all automated and include Zacks Opinion Research, Ford Equity Research, ValueEngine, Citigroup Investment Research, Refinitiv/Verus…..many. The automation provides some text that, I think is just canned text for different ranks or levels.

Zacks for sure is just the Zacks Rank. Any others that I have looked at closely state they are quant models. There may be human involvement somewhere for a few.

Quant models. Isn’t that what we are supposed to do? We should finish doing that before going to discretionary stock picking.

Probably. But the alternative is to let Zacks keep the market for this.

BTW, Zacks has tried human analyst involvement. They have kept some and many have failed: people with degrees in finance and access to computer models.

- Is “stock picker” one word or two?


I will go with two as I make it a policy to never disagree with a former editor on grammar;-)

-Jim

From time to time you will encounter Luddites, who are beyond redemption.
--de Prado, Marcos López on the topic of machine learning for financial applications

Aug 14, 2019 12:52:10 PM       
Edit 11 times, last edit by Jrinne at Aug 14, 2019 1:24:25 PM
primus
Re: A Stock-Picker Subscription Service

Move fast and be bold.

"The world is. The world is. Love and life are deep maybe as his eyes are wide." - Rush, "Tom Sawyer"

Aug 14, 2019 1:15:57 PM       
wwasilev
Re: A Stock-Picker Subscription Service

I have zero interest in that. Please continue to improve the current platform. There's plenty of work to be done.

Aug 14, 2019 1:27:08 PM       
marco
Re: A Stock-Picker Subscription Service

I think Yuval is getting too specific with the questions. I would simply ask

A - Is there's a desire from designers to offer models they control manually (as opposed to the current , fully automated Designer Models).

B - Is there's a demand for said models


Thanks


PS. the closest thing to the above is a newsletter. Key differences would be that it's a list of holdings *and* weights, with transaction history, performance tracking, etc

Portfolio123 Staff.

Aug 14, 2019 1:28:37 PM       
Jrinne
Re: A Stock-Picker Subscription Service

I would not purchase or offer this.

From time to time you will encounter Luddites, who are beyond redemption.
--de Prado, Marcos López on the topic of machine learning for financial applications

Aug 14, 2019 1:53:34 PM       
sevensisters
Re: A Stock-Picker Subscription Service

A - Is there's a desire from designers to offer models they control manually (as opposed to the current , fully automated Designer Models).


No. In my view this goes against the very core of automated strategies which we are fortunately able to develop on p123.

B - Is there's a demand for said models


Not for me at least. I can't see why a stockpicking portfolio should do betterr than an automated strategy. In my view there is a lot more psychology coming into the picture when stockpicking is applied which can be very dangerous.

Just my 2 cents.

Aug 14, 2019 4:48:15 PM       
geov
Re: A Stock-Picker Subscription Service

I have zero interest in that. Please continue to improve the current platform. There's plenty of work to be done.

I have the same answer.

Aug 14, 2019 5:45:14 PM       
sglinski
Re: A Stock-Picker Subscription Service

I vote no also- prefer to use other sites like Value Line, Morningstar, etc. for individual stock analysis. Would prefer P123 to devote more attention to maintaining and testing the current software platform and database..

Aug 14, 2019 10:52:37 PM       
gs3
Re: A Stock-Picker Subscription Service

"I have zero interest in that. Please continue to improve the current platform. There's plenty of work to be done."
I like this quote.


I don't mind if p123 charges more to boost revenue. The important thing is to keep adding more features for core users to play.

Aug 14, 2019 11:49:45 PM       
Edit 1 times, last edit by gs3 at Aug 14, 2019 11:50:15 PM
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