Today I wrote briefly about the need for a web site that would be truly useful and productive. Immediately following that article about Facebook I was contacted and informed about a new site that might fit my need for a useful and potentially profitable social site. Some would call it a social investing site.
There are plenty of web logs such as Future1investor but these blogs are not meant as community type sites. There isn't anything that brings people together to chat about, share, and help with a common interest. This is where Covestor comes in. Covestor is the Facebook of investing but instead of a general meaningless place to waste your time, it encourages the members to help each other by sharing their investing decisions.
There are two types of Covestor members:
- Fund Managers
- Investors
Investors are able to track and compare their own portfolio to fund managers as well as to other users. The system will email them when fund managers that they are following have a change in the fund manager's portfolio.
The Chief Operating Officer at Covestor previously ran the portfolio analysis systems at Goldman Sachs. So in this way you can see that this is not just another site designed on whim and idea. Covestor has partnered with research providers and also plans to monetize the site. Fund managers will be able to charge a small fee for allowing investors to follow them. Covestor will retain a portion of that fee. In this way, users are encouraged to allow their portfolio to be posted in a way that helps others learn from their successes and failures.
The main lure of being a Covestor are these three things:
- To prove your investing skills
- Track other members real trades
- Profit from sharing your decisions
In this way it shows the value of learning from others which is the point of social investing.
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