P/E ratios, market cap, earnings per share, EBITDA–for savvy investors, sifting through complex data and having a grasp of industry-specific terminology quickly becomes second nature. For most everyone else, the entire investment process can often seem overly complex, frustrating, and confusing.
Although online platforms such as E*TRADE and ShareBuilder have helped make investing more accessible and affordable for the masses, they still haven’t found a way to make investing more social. In the age of Facebook, the conversations of everyday investors that have historically taken place around the dinner table are, for the most part, still taking place around the dinner table.
With today’s launch of its online investing platform the team at Motif Investing, a San Mateo, Calif.-based startup, is officially moving from beta-mode to providing investors with a new, social way to invest their money in the ideas they really understand and care about. Users can choose from approximately 50 “motifs,” each of which is comprised of 20-30 stocks that reflect real world trends.
Unique offerings such as “No Glass Ceilings,” which is made up of publicly traded companies with women CEOs, and “Renter Nation,” a motif that includes REITs focused on developing, leasing, or operating rental properties for those who believe the housing market is going to continue to struggle, make it possible for users to filter their investment options around tangible ideas they’re not likely to see elsewhere. Thumbnails and pictures help to bring each motif to life, allowing everyday investors to make connections to ideas that otherwise wouldn’t be possible if they were forced to rely solely on valuations, bar charts, and research reports.By integrating with Facebook, users can see which motifs their friends are watching, comment on whether they’re bullish or bearish, and otherwise stay connected and engaged with their investments. Similar to Google Circles, they also have complete control over who they want to include in their social network and how much or how little they want to share about their investment decisions.
“We’re the world’s first investing platform made social. We want to take the discussions that are already happening offline and take them online,” says Motif Investing CEO Hardeep Walia. “People like validation before making a purchasing decision. Our platform makes it possible to quickly and easily share actionable ideas with your personal and professional networks.”
Following the financial crisis of 2008, people are looking for greater transparency and new ways to invest. They want to understand what their mutual fund manager is doing and decrease the amount of money they’re spending on fees. With the launch of their new online social investing platform, the team at Motif Investing is hoping to make a huge impact on the $3 trillion online investing market.
What role do you think social sharing will play in online investing?