Investment Advice from the Crowd

August 31, 2011 By Aminda

If stock market experts were so expert, they would be buying stock, not selling advice.
Norman Ralph Augustine (American author)

The quest to figure out the perfect investment strategy has been long and elusive. While many claims have been made, the pursuit continues and online crowdsourcing resources are making a notable impact on the future of investment strategy.

One of these tools, Wikinvest is an online research portal and portfolio manager featuring user-generated content on stocks, companies, and economic topics.

Wikinvest’s intention, according to CEO Michael Sha on the site Daily Finance, is to serve “normal people with investment accounts who need better tools that aren’t designed for the day-trader or the super-wealthy person. If you’ve spent a lot of time looking at financial institution websites, a good portion of them seem to have been built a very long time ago.”
As a result, the company will be launching a new electronic investment adviser built from analyses of a vast multitude of user transactions. “Imagine a system where you have a huge computer analyzing your accounts, comparing millions of different options and different combinations,” Sha explains. “I would venture to say that that analysis will be a lot more robust, and will happen in a lot faster of a transaction time, than, say, if you hired a financial adviser, and that guy was supposedly managing your account.”

A new player in the field of investment assistance, Capitalist Collective, describes itself as a hybrid social network that combines crowdsourced investment ideas with online and offline social networking. The site provides an environment for research, analysis, and debate between members with a crowdsourced investment research exchange. The organization will also host in-person networking and stock picking events.

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