LikeAssets Review

by ETF Base on July 12, 2010

Making stock and mutual fund picks is big business. Financial websites and magazines offer individual investors great ideas every day – and plenty of bad ones, as well. Unfortunately, there are few tools helping investors sort out the good ideas from the bad ones.

LikeAssets is a new website highlighting the wide range of returns between investment pickers and helping investors make informed decisions. For example, a quick review of the site shows an investor that the picks from the top author at The Motley Fool, Rick Munarriz, have generated a return of 43% since January 2009, beating the benchmark by 30%. Morningstar’s Ultimate Stock Pickers authors have a return of -6% since July 2009, and is 1% under the benchmark. But a Morningstar mutual fund picker, Russel Kinnel, is up 10.2% since November 2008, and is beating the benchmark by 6%.

LikeAssets solves two fundamental problems for investors. First, very few investing publications actually track the performance of their picks. Even when they do, there are fundamental issues when comparing sites or authors to each other. Barron’s tracks all of their stock picks and publishes their performance on the web. Every week, their   pick list is updated with the new ideas that have appeared in the magazine and online.

This sort of accountability is great, but there are some flaws. The performance calculation is a simple absolute return calculation and does not include dividends. It is impossible to sort or filter the picks by the authors who made them. The benchmarks for many of the stocks are not ideal; an emerging market stock, PBR, is being compared
to the S&P 500!

Second, even if other financial websites started providing this information, there would be many inconsistencies. Sites would use different performance calculations. And benchmarks would be applied differently. Thus investors could not accurately compare authors of different sites.

Thus, investors who follow investment picks are left in a precarious situation. They have very little information in which to monitor their sources, and even if they had the information, it would not be as useful as it could be.

LikeAssets addresses these issues and allows investors to analyze and compare leading stock and mutual fund picking ideas from the financial media. The site now has over 6,600 investing ideas and portfolios being tracked. You can compare picks from Barron’s, The Motley Fool, Morningstar, as well as leading financial bloggers and analysts.

In addition to analyzing and tracking the leading investment gurus, LikeAssets users can create their own portfolios and immediately receive:

  • Detailed asset classification,
  • Industry classification,
  • Accurate performance calculations that include dividends, and a
  • Personalized benchmark.

You can learn more and sign up for a free at LikeAssets.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: