I’ve been working really hard to provide you with content about saving money and making money, but I’ve left you a little light when it comes to investing. While I do invest regularly with a couple of different vehicles, I’m not an investment expert (nor do I pretend to be one). In order to provide you with more content around investing, I’ve reached out to some friends who talk about it regularly. I figured this would be better than hearing me chat about investing.
So, without further ado, here is my good friend, Joseph Hogue, who loves to talk about investing and blogging. Take it away Joseph!
After nearly a decade as an investment analyst, you start to run out of investing ideas. A lot of stocks start to look the same, especially when the stock market reaches new highs and everything looks expensive.
I’m a long-term investor but like to add a few stocks to my portfolio at the beginning of each year. After my year-end reshuffle, I’ll add new investments and companies that I like but maybe hadn’t been on my radar the year before.
It wasn’t easy this year and through emails with readers on my investing blog, it seemed a lot of other investors were running into the same problem.
A note from one reader helped uncover what’s now one of my favorite online investing sites and my go-to source for finding new investing ideas.
How Motif Investing is Changing the Investing Game
The website is called Motif Investing, a newer online investing platform but one with some really interesting features. You can buy and sell stocks or exchange traded funds (ETFs) as with any online broker but Motif does it with one very important difference.
On Motif, you create a fund around a group of stocks and buy all the stocks within that group for one commission. Say you want to invest in a group of oil & gas companies and have 10 stocks that you’d like to buy. You group those ten stocks into a fund, adjust it for if you want to buy a larger percentage of some rather than others, and then buy them all with one trade.
Instead of paying something like $100 to buy all ten stocks on another site, you pay just $10 to buy them on Motif. You can put up to 30 stocks in a single fund.
How I Find Investing Ideas on Motif Investing
But that still doesn’t help us find new investing ideas…except the website happens to be one of my favorite resources for finding the best investments as well.
The individual funds, called motifs, created by other investors and the website itself are all viewable on the site. This means you can search through the site or look within specific categories and click through to the funds others have created. You can see the stocks each fund holds as well as how well they’ve done since the fund was created.
It’s a great way to see what other people are investing in and what stocks you might include when you’re investing in a theme.
There are hundreds of motifs on the website. You can invest in an existing fund, changing the percentages of each stock. I use the funds only as a starting point to get ideas for my own funds.
Other Reasons I’m Investing on Motif
There are a lot of reasons to like Motif Investing besides as a source for investing ideas.
Saving money investing is the most obvious. Even if you don’t sell your stocks often, you’re probably investing new money in them a few times a year. Owning 30 stocks and investing in each three times a year means 90 transactions and could easily cost you $900 at most online brokers. On Motif, you just group the 30 stocks together and buy the fund, costing $30 for the three trades throughout the year.
One of the most overlooked benefits to investing on Motif is that you don’t stress quite as much over individual stocks. Click through to your portfolio on any other website and you’re smacked in the face instantly with the stocks that have fallen in value. It makes it easy to panic and sell, racking up the trading fees and often just before prices rebound.
With all my stocks grouped into funds on Motif, I don’t worry so much about any individual company. You can click through to the fund and see the performance on each stock but the overall fund performance is much smoother. The ups-and-downs of one stock become less important against the gradual increase in the whole group of investments.
For a lot of investors, that kind of stress-free investing is a welcome change compared to the euphoric-buying and panic-selling that too often loses money.
Lately, when I’m not putting my money in p2p investing, I’m putting it in my four funds on Motif Investing. I have one fund that invests in the same companies as Warren Buffett while another fund targets my favorite investing themes for the next 30 years. Another fund is filled with great dividend payers and the last holds all my bond and retirement investments. You can put all your stocks into a single fund or create as many as you like.
About the Author: Joseph Hogue, CFA is an investment analyst and blogger. He manages six blogs on everything from personal finance, investing, crowdfunding and creating a successful home-based business. A veteran of the Marine Corps, he holds the Chartered Financial Analyst (CFA) designation and lives with his family in Medellin, Colombia.
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