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Motif Investing

Posted on 2/18/13 at 4:27 pm
Posted by Dan
Austin
Member since Dec 2006
2454 posts
Posted on 2/18/13 at 4:27 pm
LINK

Stumbled upon this from my Mint account and thought it was kind of interesting.

Basically, you choose from one of their themed bundles of stocks ("motifs"), usually about 20 to 30 stocks in each, and decide how much of it you want to purchase (minimum $250 I think). You pay a $9.95 fee to buy/sell the motif.

Once selected, you can choose the composition of the stocks within the group. (Go heavier on salesforce.com in your 'Cloud Computing' motif).

I would say it is almost like making your own fund.

Gimmick?

Posted by Teddy Ruxpin
Member since Oct 2006
39547 posts
Posted on 2/18/13 at 5:07 pm to
quote:

Gimmick?


I'm gonna go with yes, because I bet these motifs will appeal (and are marketed to) people who don't really know what the hell they are doing and will probably underperform.

But I'm just guessing.
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69890 posts
Posted on 2/18/13 at 5:41 pm to
It's an interesting concept, but hasn't been around long enough for me to be comfortable putting a significant sum of cash into it.

I'm not sure it's a gimmick, but it's got a lot of potential to harm the average investor.
Posted by jso0003
Member since Jun 2009
5170 posts
Posted on 2/18/13 at 11:26 pm to
quote:

I'm gonna go with yes, because I bet these motifs will appeal (and are marketed to) people who don't really know what the hell they are doing and will probably underperform.


Exactly my first thought.
Posted by Dan
Austin
Member since Dec 2006
2454 posts
Posted on 2/19/13 at 9:22 am to
quote:

I bet these motifs will appeal (and are marketed to) people who don't really know what the hell they are doing and will probably underperform.


I agree for the most part.

I understand the appeal of the 'idea investing'. I think many people who are interested in picking individual stocks, especially beginners, rely heavily on the 'ideas' that are behind these motifs. For them, it's less about balance sheets and 10-Ks and more about "I really think Streaming video content is taking over, who are the big names in this movement?" and they buy Netflix and Redbox, Verizon or whatever.

Posted by VABuckeye
Naples, FL
Member since Dec 2007
35469 posts
Posted on 2/19/13 at 10:05 am to
I've looked at it. I like the idea of bundling a bunch of dividend paying stocks as a part of future retirement income. I'd have to run the numbers on the fees to see how it stacks up against others. I've heard the CEO a couple of times on Bloomberg. Bright guy.
Posted by Teddy Ruxpin
Member since Oct 2006
39547 posts
Posted on 2/19/13 at 10:56 am to
quote:

I've heard the CEO a couple of times on Bloomberg. Bright guy.


Most of these people are. Its why they ended up going to pretty good schools and putting themselves in a position to sell stuff to others.

I feel inadequate at times. Guy I know who is a financial analyst in Manhattan came down for Mardi Gras. He would just throw these money making ideas at me, its all they think about. Be it growing a certain tree for wood, or buying houses in ATL, etc. We ran into another young guy who works in NYC as well. He was all about exploiting the Japan situation. Talked about having dinner with Michael Lewis, etc. Its a completely different lifestyle
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