Comments on: Social Investing Site Covestor Raises $6.5 Million http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/ Startup and Technology News Mon, 13 Oct 2008 02:01:12 +0000 http://wordpress.org/?v=2.5.1 By: Investing wisely to create wealth « South African Riches! http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2394674 Investing wisely to create wealth « South African Riches! Wed, 02 Jul 2008 05:17:36 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2394674 [...] Social Investing Site Covestor Raises $6.5 Million [...] [...] Social Investing Site Covestor Raises $6.5 Million [...]

]]> By: Social Investing Site Covestor Is Now Open to the Public http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2378584 Social Investing Site Covestor Is Now Open to the Public Wed, 18 Jun 2008 16:22:31 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2378584 [...] you can now import your contact list to make it easier to invite people to the site. The company raised $6.5 million last April from Union Square Ventures and Spark Capital. In addition to Cake Financial, it competes [...] [...] you can now import your contact list to make it easier to invite people to the site. The company raised $6.5 million last April from Union Square Ventures and Spark Capital. In addition to Cake Financial, it competes [...]

]]> By: Screen Scraping Lunacy & Need for Open Data | latoga labs http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2163428 Screen Scraping Lunacy & Need for Open Data | latoga labs Fri, 11 Apr 2008 22:54:13 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2163428 [...] yet, that is exactly what Cake Financial, Covester (recently raised $6.5M in funding), and others are doing. Granted, I don’t know a lot about these firms at this point, I know [...] [...] yet, that is exactly what Cake Financial, Covester (recently raised $6.5M in funding), and others are doing. Granted, I don’t know a lot about these firms at this point, I know [...]

]]> By: Yafit http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2154586 Yafit Wed, 09 Apr 2008 06:34:20 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2154586 I have yet to hear about any friend or colleague that has succeeded in his portfolio investment by following any of these social platforms. I continue to follow (with good success so far) the gstock supercomputer stock alerts. http://www.gstock.com I have yet to hear about any friend or colleague that has succeeded in his portfolio investment by following any of these social platforms. I continue to follow (with good success so far) the gstock supercomputer stock alerts.

http://www.gstock.com

]]> By: Michiel de Boer http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2142806 Michiel de Boer Tue, 08 Apr 2008 04:25:25 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2142806 Congrats Rikki! May the additional funding step up the competition with ZeccoShare to deliver a more transparent and credible social investment experience to the masses. Power to the retail investor! Congrats Rikki! May the additional funding step up the competition with ZeccoShare to deliver a more transparent and credible social investment experience to the masses. Power to the retail investor!

]]> By: Don_Bartell http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2141949 Don_Bartell Tue, 08 Apr 2008 01:45:37 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2141949 I've been with Covestor since March last year, and have benefited in several important ways: 1. I've run into many new and challenging ideas. These have helped me clarify my own, and as a result I believe I'm becoming a better trader. 2. Covestor encourages traders to record their rationales for every trade. I've found that to the extent that I do this, I'm becoming more disciplined. 3. That performance chart of mine takes the place of a lot of record keeping that I really just never have been able or interested in. About a couple of concerns mentioned by other commentators here already: Concern by # 2 above "So, if you share your financial information, will that not affect the performance of your portfolio. i am talking about a negative feedback loop. i think investors should get some thing in return for sharing the data." My thought is that if some other trader were to "front run" my trades, based on seeing what's on my Watch List on Covestor, that would only serve to move the market in my direction. And if someone were to fade my trades, by taking the opposite side of the transaction, I need to buy from some seller, so I'm not concerned about who that might be. Concern by Z, # 8 above, "The best investors won’t put their stuff up on Covestor" My experience is that the best traders on Covestor, some of whom are "amateurs", and some of whom are professionals, completely blow away the competition. This is not just based on a few lucky trades, but a significant number over time, all subjected to the rigor of having their trading statistically evaluated, so that their returns are Risk Adjusted as well. And I can see their verified trades today, while they might still do me some good. It really doesn't do me much good today to learn what even the highest perfoming Mutual Fund managers, or for that matter, Warren Buffett, bought 3 months ago. #19 above expressed this concern: "social investing is a disaster waiting to happen. I don’t trust money managers with my money. Why would I trust some Silicon Valley idiot with half a clue about how to invest in the market? Go buy an index fund or have enough to invest in a hedge fund. Otherwise, the market WILL beat you 8 times out of 10" My response: You're right about the market beating traders most of the time, especially not the way most traders go about it. That goes for professionals as well as for amateurs. Most students don't get straight A's, most people don't run marathons, and most traders don't have what it takes to be in that top 10 or 20 percent, not to mention the top 1 or 2 percent. But I have actually found an increasing number of them on Covestor. If anything, after this experience with Covestor, I'm far more convinced now than ever that it's possible to be in that top small percent. www.covestor.com/mbr/Don_Bartell I’ve been with Covestor since March last year, and have benefited in several important ways:

1. I’ve run into many new and challenging ideas. These have helped me clarify my own, and as a result I believe I’m becoming a better trader.
2. Covestor encourages traders to record their rationales for every trade. I’ve found that to the extent that I do this, I’m becoming more disciplined.
3. That performance chart of mine takes the place of a lot of record keeping that I really just never have been able or interested in.

About a couple of concerns mentioned by other commentators here already:

Concern by # 2 above

“So, if you share your financial information, will that not affect the performance of your portfolio. i am talking about a negative feedback loop. i think investors should get some thing in return for sharing the data.”

My thought is that if some other trader were to “front run” my trades, based on seeing what’s on my Watch List on Covestor, that would only serve to move the market in my direction. And if someone were to fade my trades, by taking the opposite side of the transaction, I need to buy from some seller, so I’m not concerned about who that might be.

Concern by Z, # 8 above,
“The best investors won’t put their stuff up on Covestor”

My experience is that the best traders on Covestor, some of whom are
“amateurs”, and some of whom are professionals, completely blow away the competition. This is not just based on a few lucky trades, but a significant number over time, all subjected to the rigor of having their trading statistically evaluated, so that their returns are Risk Adjusted as well. And I can see their verified trades today, while they might still do me some good. It really doesn’t do me much good today to learn what even the highest perfoming Mutual Fund managers, or for that matter, Warren Buffett, bought 3 months ago.

#19 above expressed this concern:
“social investing is a disaster waiting to happen. I don’t trust money managers with my money. Why would I trust some Silicon Valley idiot with half a clue about how to invest in the market? Go buy an index fund or have enough to invest in a hedge fund. Otherwise, the market WILL beat you 8 times out of 10″

My response: You’re right about the market beating traders most of the time, especially not the way most traders go about it. That goes for professionals as well as for amateurs. Most students don’t get straight A’s, most people don’t run marathons, and most traders don’t have what it takes to be in that top 10 or 20 percent, not to mention the top 1 or 2 percent. But I have actually found an increasing number of them on Covestor.

If anything, after this experience with Covestor, I’m far more convinced now than ever that it’s possible to be in that top small percent.

http://www.covestor.com/mbr/Don_Bartell

]]> By: Q dub http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2141692 Q dub Tue, 08 Apr 2008 00:51:54 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2141692 One of the fundamental purposes of financial systems is to dilute risk. Covestor does the exact opposite of that, by magnifying the impact of the wins and loses of a smaller set of "top investors". One of the fundamental purposes of financial systems is to dilute risk. Covestor does the exact opposite of that, by magnifying the impact of the wins and loses of a smaller set of “top investors”.

]]> By: Timothy Sykes http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2141296 Timothy Sykes Mon, 07 Apr 2008 23:39:16 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2141296 Yeahhhhhh baby, as Covestor's Top Ranked "Investor" I approve this transaction. Yeahhhhhh baby, as Covestor’s Top Ranked “Investor” I approve this transaction.

]]> By: Allen Graber http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2140703 Allen Graber Mon, 07 Apr 2008 21:57:52 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2140703 This seems like the year 2000 all over again. There were a handful of websites like this that perished. Covestor just seems like the same stuff with 2.0 spin. I invested in one such company in 2000 called JoeAdvisor.com. There's still an old article about JoeAdvisor still online at http://triangle.bizjournals.com/triangle/stories/2000/05/15/newscolumn1.html Maybe the timing is better now...I hope so for the entrepreneurs and investors sake. My timing sucked! This seems like the year 2000 all over again. There were a handful of websites like this that perished. Covestor just seems like the same stuff with 2.0 spin. I invested in one such company in 2000 called JoeAdvisor.com. There’s still an old article about JoeAdvisor still online at http://triangle.bizjournals.co.....lumn1.html

Maybe the timing is better now…I hope so for the entrepreneurs and investors sake. My timing sucked!

]]> By: You all crack me up http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139765 You all crack me up Mon, 07 Apr 2008 18:39:08 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139765 All these sites forget that social investing is a disaster waiting to happen. I don't trust money managers with my money. Why would I trust some Silicon Valley idiot with half a clue about how to invest in the market? Go buy an index fund or have enough to invest in a hedge fund. Otherwise, the market WILL beat you 8 times out of 10. Oh and yeah, Covestor's spammers up above - nice try :) All these sites forget that social investing is a disaster waiting to happen. I don’t trust money managers with my money. Why would I trust some Silicon Valley idiot with half a clue about how to invest in the market?

Go buy an index fund or have enough to invest in a hedge fund. Otherwise, the market WILL beat you 8 times out of 10.

Oh and yeah, Covestor’s spammers up above - nice try :)

]]> By: Adam Jackson http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139742 Adam Jackson Mon, 07 Apr 2008 18:32:55 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139742 I've been using Covestor since last fall and have enjoyed watching it grow - it's a great service. There are still ways to game the system, though: http://www.jacksonfound.com/2008/04/01/social-investing-and-pump-and-dump-20/ I’ve been using Covestor since last fall and have enjoyed watching it grow - it’s a great service.

There are still ways to game the system, though:

http://www.jacksonfound.com/20.....d-dump-20/

]]> By: Peter http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139546 Peter Mon, 07 Apr 2008 17:37:54 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139546 I've been a member since Aug '07 and one of their top performers, with a track record of consistantly outperforming the indices. I was attracted to Covestor because it offered a way to be rewarded for my trades. It is also the only site i know which verifies trades. I’ve been a member since Aug ‘07 and one of their top performers, with a track record of consistantly outperforming the indices. I was attracted to Covestor because it offered a way to be rewarded for my trades. It is also the only site i know which verifies trades.

]]> By: Cate Long http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139518 Cate Long Mon, 07 Apr 2008 17:31:09 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139518 >>> Nice approach... >>> Complex business model... >>> Nice approach…

>>> Complex business model…

]]> By: Covestor Raises $6.5 Million « The Big Deal http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139457 Covestor Raises $6.5 Million « The Big Deal Mon, 07 Apr 2008 17:15:09 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139457 [...] TechCrunch [...] [...] TechCrunch [...]

]]> By: Ward Kadel http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139453 Ward Kadel Mon, 07 Apr 2008 17:14:29 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139453 I have been an amateur investor for the last 5 years or so and an active member of Covester for almost a year. I have found that Covester has greatly increased my effectiveness in my own investment strategies as well as introduced me to many new equities and investment philosophy refinements. Congratulations to Covester on its new financing and I can't wait to watch it continue to mature and evolve! I have been an amateur investor for the last 5 years or so and an active member of Covester for almost a year. I have found that Covester has greatly increased my effectiveness in my own investment strategies as well as introduced me to many new equities and investment philosophy refinements. Congratulations to Covester on its new financing and I can’t wait to watch it continue to mature and evolve!

]]> By: alex http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139427 alex Mon, 07 Apr 2008 17:01:33 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139427 I did a fascinating interview with Perry Blancher, Co-Founder of Covestor, on UsableMarkets. You can read it here: http://www.usablemarkets.com/?p=226 ~alex (UsableMarkets.com) I did a fascinating interview with Perry Blancher, Co-Founder of Covestor, on UsableMarkets.

You can read it here: http://www.usablemarkets.com/?p=226

~alex (UsableMarkets.com)

]]> By: Robert Freedland http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139396 Robert Freedland Mon, 07 Apr 2008 16:55:23 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139396 Go Covestor! As a blogger who writes about investing, there is nothing more important to a reader than credibility and verification of assertions. Covestor levels the field providing performance evaluation of my actual account for me as well as for my readers. There is nothing more useful than watching investors actually make trades and incur profits and gains as is possible through Covestor. Congratulations to the folks at Covestor where I have found immense help in developing my own website and learned much from other investors who also struggle to deal with the changing investment climate. Go Covestor! As a blogger who writes about investing, there is nothing more important to a reader than credibility and verification of assertions. Covestor levels the field providing performance evaluation of my actual account for me as well as for my readers.

There is nothing more useful than watching investors actually make trades and incur profits and gains as is possible through Covestor.

Congratulations to the folks at Covestor where I have found immense help in developing my own website and learned much from other investors who also struggle to deal with the changing investment climate.

]]> By: andy http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139395 andy Mon, 07 Apr 2008 16:55:22 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139395 i think plenty of people will put trades up. Especially if its easy - and they stand a chance of making some money of it in the future. Its the perfect form of leverage without the risk to them. i think plenty of people will put trades up. Especially if its easy - and they stand a chance of making some money of it in the future. Its the perfect form of leverage without the risk to them.

]]> By: dustin http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139377 dustin Mon, 07 Apr 2008 16:49:26 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139377 I like this service (and Cake too) a lot, but I think it will be a fairly niche service. You have to be a very active, engaged investor, you have to trust non-pros (people should, but many don't) and you have to be interested in giving to get. Ultimately, I think the best of these get gobbled up by brokers and they become just another way to find ideas. I like this service (and Cake too) a lot, but I think it will be a fairly niche service. You have to be a very active, engaged investor, you have to trust non-pros (people should, but many don’t) and you have to be interested in giving to get. Ultimately, I think the best of these get gobbled up by brokers and they become just another way to find ideas.

]]> By: Dima http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139280 Dima Mon, 07 Apr 2008 16:18:20 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139280 What a cool idea - it's like MySpace for stocks! I wouldn't be surprised to see Microsoft or Google gobble this thing up within a few years! What a cool idea - it’s like MySpace for stocks! I wouldn’t be surprised to see Microsoft or Google gobble this thing up within a few years!

]]> By: abdul http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139276 abdul Mon, 07 Apr 2008 16:17:10 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139276 http://news.bbc.co.uk/2/hi/business/7254456.stm http://news.bbc.co.uk/2/hi/business/7254456.stm

]]> By: Z http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139270 Z Mon, 07 Apr 2008 16:16:05 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139270 The best investors won't put their stuff up on Covestor. Invest in a private equity fund managed by someone with a great track record. The best investors won’t put their stuff up on Covestor. Invest in a private equity fund managed by someone with a great track record.

]]> By: 113.com http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139265 113.com Mon, 07 Apr 2008 16:14:11 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139265 Self-sufficiency is neat, no doubt. :-o Self-sufficiency is neat, no doubt. :-o

]]> By: Fred http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139259 Fred Mon, 07 Apr 2008 16:12:07 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139259 I have been a member of Covestor since August, 2007 and am very pleased with the service so far. The folks at Covestor are very responsive to suggestions for improvements, etc. From my experience as an avid stock investor in both the Canadian and American markets, Covestor can make you a better investor and if you are considered by others to worth following, you can make a few dollars as well. I have been a member of similar sites over the past three years and none were as good as Covestor. I have been a member of Covestor since August, 2007 and am very pleased with the service so far. The folks at Covestor are very responsive to suggestions for improvements, etc. From my experience as an avid stock investor in both the Canadian and American markets, Covestor can make you a better investor and if you are considered by others to worth following, you can make a few dollars as well.

I have been a member of similar sites over the past three years and none were as good as Covestor.

]]> By: bonecrusher http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139258 bonecrusher Mon, 07 Apr 2008 16:11:52 +0000 http://www.techcrunch.com/2008/04/07/social-investing-site-covester-raises-65-million-in-series-a/#comment-2139258 This VC group seems a great fit for Covestor. They have success in social Web sites. Adds a lot of value to what is a very strong concept. Watch out Wall Street...as an avid seeker of non-wirehouse investment ideas i find Covestor very intriguing, and have found strategies not in evidence elsewhere. Good luck! This VC group seems a great fit for Covestor. They have success in social Web sites. Adds a lot of value to what is a very strong concept. Watch out Wall Street…as an avid seeker of non-wirehouse investment ideas i find Covestor very intriguing, and have found strategies not in evidence elsewhere. Good luck!

]]>