The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Copycat investing / cloning - anybody doing it?

Anything related to investing, including crypto

MakeItHappen

Gold Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
192%
Apr 12, 2012
629
1,206
Has anybody practical experience with copycat investing / cloning portfolios of successful (value) investors?

The key idea:
- Investors that manage $100+ million must report the stocks which they bought/sold quarterly.
- You can look at the portfolios of the most successful value investment funds (of the last 20 years) and just copy/clone them given you can get the stocks for about the same price which isn't always but quiet often the case.

If you become a decent value investor yourself instead of trying to find stocks on your own you can just analyze the picks of very successful value investors with proven track records and if the stocks make sense to you, you invest.

While there are things that have to be considered the concept makes logical sense to me.
I read a couple of articles that explain the reasons why a strategy like this might fail and pretty much of these "mistakes" can be avoided.

Now my question to the experienced investors on the forum, what is the catch? While it makes logical sense it just seems to easy of a strategy for beating the market as a retail investor.


PS:
Here are a couple links I found interesting:
Beyond Buffett: How To Build Wealth Copying 9 Other Value Stock Pickers
View: https://www.youtube.com/watch?v=VdX-_2hs50A

Cloning Investments 101
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

DVU

In Progress
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
236%
Sep 24, 2016
256
603
25
Croatia
From my limited knowledge about this topic:

If someone is managing 100+ mil he probably isn't looking for crazy returns.

But as its a lot of money, those small returns make sense.

The amount of money an "average" person would invest wouldn't justify the return over the possible risk.
 

SchenkFinancial

Contributor
Read Fastlane!
Read Unscripted!
User Power
Value/Post Ratio
145%
Jul 17, 2019
44
64
Germany
The certificates which I am creating correspond to a certain extent to what @MakeItHappen is describing. These certificates are issued by the German corporation Lang & Schwarz and then can be subsequently traded on the Stuttgart stock exchange.

One of my certificates, which is a virtual portfolio of software stocks, is currently in the process of being issued after having found a sufficient amount of investors: New Sector | wikifolio.com

Thank you for investing.
 

Jaden Jones

Igloo Builder
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
143%
Aug 22, 2018
244
350
Canada
There as actually a site that tracks value investors purchases. I have heard of people having success. The thing to look for though is when in the quarter did they buy, buying stocks even 2 weeks later can have a huge affect on returns.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top