Analytical tools for a community of investors having investment portfolios

A system and method for providing analytical tools for a community of investors having investment portfolios. A first tool provides an indication of a user's selection effectiveness regarding the user's choice of investments relative to those sectors in which the investment resides, and relative to a broader market. A second tool allows the user to evaluate the effectiveness of community stimuli on the user's portfolio. A third tool provides the user the capability to view relationships among a plurality of preferred analysts. With a fourth tool, a user may view a plurality of other analysts the user referred to the community.

BACKGROUND

1. Field of the Invention

The invention relates to tools used by investors of a community of investors for monitoring their investing skill and relationships to the community of investors. More specifically, the invention relates to tracking the effectiveness, relatedness and other aspects of members of a virtual community who make real or virtual investments.

The long bull market of recent years has lead to a proliferation of on-line investors that are technologically savvy and able to avail themselves of vast research resources that the Internet provides. This proliferation has been reflected in increasing ranks of day traders and overall security volume attributable to non-institutional investors. Various web sites allow on-line investors to trade securities. Some web sites provide investors tools to monitor their holdings. These tools are typically a pie chart showing the sector breakdown of stock or mutual fund holdings, a simple graph showing the historical performance or price of stocks and mutual funds over a period of time, and a simple graph showing the increase in a hypothetical investment of $10,000 in one or more stocks or mutual funds. As more investors are endeavoring to control their own investments, new and better tools are needed to allow investors to understand the performance of their investments.

SUMMARY

A system and method for providing analytical tools for a community of investors having investment portfolios. A first tool provides an indication of a user's selection effectiveness regarding the user's choice of investments relative to those sectors in which the investment resides, and relative to a broader market. A second tool allows the user to evaluate the effectiveness of community stimuli on the user's portfolio. A third tool provides the user the capability to view relationships among a plurality of preferred analysts. With a fourth tool, a user may view a plurality of other analysts the user referred to the community.

DETAILED DESCRIPTION

To increase a user's understanding of how a portfolio of investments or single investments are performing, and to provide other useful information a set of analytical tools may be provided to an investor. The investor may be an Internet investor that connects to a server running analyzer software that provides the analytical tools.

FIG. 1is a block diagram of a system of one embodiment of the invention. A server node100is coupled to a wide area network (WAN)102such as the Internet. Also coupled to WAN102are a plurality of client nodes104. Client nodes104may be a personal computer (PC), a WAN enabled phone, a personal digital assistant (PDA), a computer tablet, a set top box, or any other device with which a user may connect to a WAN. Server node100may include database106and analyzer108. The server node100includes web server software112to serve web pages and information to, and to receive information from client nodes104. The server node100receives information such as investment preferences, user profiles, real and virtual or hypothetical buy information, real and virtual or hypothetical sell information, referral information, and other information, including requests to view another user's investment preferences, submitted by a virtual community made of a population of users that connects from client nodes104through WAN102to the server node100. The virtual community is based around investments, including securities investment, equities investment, etc.

Each member of the population that makes up the virtual community initially creates a personal profile and becomes a member of the community via server node100. This may be achieved by the server node providing a web page or sequence of web pages in hypertext mark up language (HTML) that prompt the user to provide the appropriate information. Any references to prompting or providing web pages herein are achieved in this manner and may include a plurality of user interface items and user interface techniques, including, but limited to buttons, sliders, text entry fields, JAVA® applets, and the like.

Server node100may store personal profiles, community information, buy information, sell information, referral information, investor preferences, and a plurality of securities information and equities information in the database106. Database106may be a relational database such as an Oracle-style database or may include one or more of such databases with or without links between them. To obtain values and other information concerning securities, equities, and other investments, server node100may communicate with third party databases (not shown) via WAN102or via a direct connection.

Users are referred to interchangeably herein as “analysts” and “members.” Investments may include and may be referred to as securities, stocks, mutual funds, equities, and the like. In other embodiments, investments may also include any property, obligation, note, or ownership interest in anything. In one embodiment, the server node may provide for the formation of a mutual fund formed by screening the aggregation of member investment preferences. In this manner, a fund is established based on the intelligence of the community. Investment preferences are stocks or other investments the user prefers and actions the user wishes to have taken with regard to stocks or other investments such a buy, sell, hold, sell short, buy long, etc. Preferences may be thought of as recommendations for investing including associated actions to be taken concerning the particular investment.

In one embodiment, to encourage community members to submit their best investment preferences, a reward structure may be established to reward those members submitting the best performing investment preferences over a predetermined period of time such as daily, weekly or some other established time frame. In one embodiment, the reward structure further includes an incentive for referring members who subsequently are identified as having selected the best performing investment picks. To that end, the analyzer108may rank investment preferences submitted by each analyst to establish which analysts should receive the reward for each reward period. In one embodiment, the ranking is based on a comparison between the real world performance of all the analysts' preferences compared with the performance of all other analysts preferences during a particular time window. In this way, members may also be placed in a category of top performing investors. Analyzer108may also maintain a list of top performing investors made up of those investors whose preferences perform in a top range over a period of time. The range may be the top 1%, top 5%, top 10%, etc. The period of time may be quarterly, monthly, daily, weekly, past 30 days, past 60 days, etc.

In one embodiment, the server node includes analyzer software that provides the processing needed to achieve the analytical tools discussed below. The analyzer may interact with and communicate with one or more databases, one or more web servers, and other specialized servers (not shown) to provide web pages, receive and provide data, and provide graphics to achieve the analytical tools discussed below.

FIG. 2Ais a flow diagram of operation of one embodiment of a tool to analyze the effectiveness of selecting investments relative to a sector and relative to a broader market according to an embodiment of the invention. The server receives a plurality of stock holdings and/or other investments from a user, as shown in block200. The server may then receive a request from a user to determine how the plurality of stocks performed relative to a sector to which the stock belongs and relative to other stocks within the sector, as shown in block210. Sectors may be well known categories of stocks, or any variety and granularity of categories that may be applied to the particular investment type or class. The server then calculates how each of the stock holdings performed relative to each other and relative to the sector to which the stock belongs, as shown in block220. The server also calculates how each sector performed relative to other sectors, as shown in block230. In one embodiment, the calculating in blocks220and230may be accomplished by the analyzer in the server. In this embodiment, all pertinent data may be obtained from third party databases and/or from the server's local database(s). In another embodiment, the server may serve an applet to the client (user) to do the calculating on the user's computer. In this embodiment, all pertinent data is maintained by and obtained from the user's computer.

The server then provides an indication of the user's effectiveness at choosing stocks within a sector and relative to a broader market by providing a graph to the user showing how each stock within each sector performed relative to other stocks in that sector and showing how each sector performed relative to other sectors, as shown in block240. In another embodiment, the server may serve an applet to the client (user) to do display the graph on the user's computer. In one embodiment, the period of time for which these calculations are performed defaults to a server specified amount of time such as 30 days, 120 days, annually, etc. In another embodiment, the amount of time over which these calculations are made is user selectable. Sector performance may be computed according any well known methods.

FIG. 2Bis an embodiment of a graph indicating the effectiveness of selecting investments relative to a sector and relative to a broader market. In one embodiment, graph250is a horizontal bar graph that shows sectors254and their performance256. In various embodiments, performance may be denoted by text labels such as the trio of bottom, middle and high performers; the sextet of poor, fair, average, good, better, best; etc. In other embodiments, performance may be denoted by a percentage change in share price, or a star rating such as from one star to five stars. As can be seen in graph250, extremes are shown such as stock260, a bad performer in the bottom sector, and stock,264, a stock that outperformed other stocks in the sector and outperformed the sector. The graph also shows that sector266outperformed sector252. This graph shows an investor the performance of the investor's stocks relative to the sector in which the stock is categorized, relative to other stocks within the sector, and relative to other of the investor's stocks in the investor's portfolio, and also shows the investor the performance of sectors relative to each other. The graph also provides the user an indication of how each particular stock in the portfolio performed relative the broader market by showing the performance of the various sector. In another embodiment, one or more well known indices such as the Russell 2000 or the Dow Jones Industrial Average may be provided for additional comparison. In one embodiment, inclusion of averages may be user selectable. In one embodiment, the user may select whether all sectors will be displayed or only those sectors in which the user has invested.

FIG. 3Ais a flow diagram of operation of one embodiment of a tool to analyze the effectiveness of community stimuli in selecting investments according to an embodiment of the invention. The server first obtains user profiles, as shown in block300, and creates a virtual community of users, as shown in block302. The server then obtains initial investment information from a user to create a portfolio, as shown in block304. This initial investment information may be a portfolio of securities or other investments designated by a ticker symbol, a purchase price, and may include a purchase date, a number of shares purchased, a commission paid and other information. In one embodiment, this initial investment information may include a motivation information by which a user specifies whether the purchase of the investment was made responsive to a community stimuli such as the preferences of a particular community member. The server then receives buy and sell information from a user including a motivation information used to track whether the transaction was based on information provided by another member of the community, as shown in block306. In one embodiment, the motivation information may be inferred by the server such that the server may recognize when a user buys or sells a particular investment after viewing the preferences of another member regarding that investment. That is, in various embodiments, the motivation information may be server determined or provided by a user.

The server may receive a request from a user to provide an indication of the effect of community stimuli on the user's investment portfolio, as shown in block308. The server then calculates a return for the user's investment over a period of time, as shown in block310. The server then creates a partial portfolio of the user's portfolio by excluding those investment bought or sold pursuant to community stimuli, as shown in block312. The server calculates a return for the partial portfolio over a period of time, as shown in block314. The server then provides a graph to the user showing the portfolio return compared to the partial portfolio return over a period of time to indicate the effectiveness of community stimuli on the investor's portfolio, as shown in block316.

FIG. 3Bis an embodiment of a graph indicating the effectiveness of community stimuli in selecting investments. Graph318depicts the net asset value320of a portfolio of securities over a period of time322. A first line330indicates the value of the user's portfolio, and a second line332indicates the value of a subset of the user's portfolio excluding those investments made based on community stimuli. In this way, the user may easily see whether the performance of the user's portfolio has been enhanced or degraded by the inclusion of investments made pursuant to community stimuli.

FIG. 4Ais a flow diagram of operation of one embodiment of a tool to analyze the relationship between investors in a community of investors according to an embodiment of the invention. After prompting for and receiving a plurality of user profiles, as shown in block400, the server may receive a user's request to view another user's investment preferences, as shown in block402. The server then provides a second user's investment preferences to the first user responsive to receiving the request from the first user, as shown in block404. The server tracks each user's correlation with each other user such that an association between all user's is maintained, as shown in block406. In one embodiment, this association may be server determined by the server maintaining a list of the users whose preferences a user visits. In another embodiment, the association may be maintained only if the user bases a trade on another user's preferences. In yet another embodiment, a user may be provided the ability to add other investors to a list of favorite investors which is maintained by the server. In this way, the association is based in the user selected favorites list.

The server may then receive a request from a user to display related other users, as shown in block408. In one embodiment, the user may select a degree of relationship so that only users within that degree of relationship will be displayed. In another embodiment, the server has a predefined degree of relationship that will limit the display. The server then displays user's associated with the user, as shown in block410. In the display, the serve may signify those users to which the user is highly correlated and those users that have been determined to have a higher rate of their return on investments than other users. In one embodiment, the server may allow the user to view the relationship between any one user and all other users, within a degree of relationship.

FIG. 4Bis an embodiment of a graph indicating the relationship between investors in a community of investors. Graph430shows the association between a user432and other users based on the association maintained by the server. In one embodiment, related users are denoted by a first style of line such as line442, and highly related users are denoted by a second style of line such as line444. In one embodiment, those users who are top performers may be denoted as such by a graphical accent such as a flame440. The result is what may be considered a constellation. The example depicted in graph430is limited to three levels of relatedness. In various embodiments, the levels or degrees of relatedness displayed may be system dependent or user selectable. In one embodiment, the graph represents the user's favorite other users and their favorites' favorites, etc. In this embodiment, an indication of whether the user's investing style is highly related may also be presented. In another embodiment, the graph may also indicate those user's to whom the user's investing style is related or highly related. In one embodiment, a user may view the degree of relationship of one user to all other users by clicking on the particular user displayed in the constellation, such as, for example, clicking on any user in graph430may cause a relationship graph of the particular user to be displayed.

FIG. 5Ais a flow diagram of operation of one embodiment of a tool to analyze the referral relationship between investors in a community of investors according to an embodiment of the invention. After prompting for and receiving a plurality of user profiles such that a virtual community is established, as shown in block500, the server may provide the user the option to refer new users to become members of the virtual community, as shown in block502. The server then receives this referral request from the user, as shown in block504. The server may then take appropriate action to respond to the referral request. The server tracks referral requests from all users such that a record of relatedness between all users is maintained, as shown in block506. The server may receive a request to provide a representation of all users to whom the user is related, as shown in block508. In response, the server provides an hierarchical graphical display of the relatedness of the user to other users to the user, as shown in block510.

FIG. 5Bis an embodiment of a graph indicating the referral relationship between investors in a community of investors. Graph514shows the association between a user516and other users based on the hierarchical record maintained by the server. Related users are denoted by a line such as line522. User516is shown to be related to various other users520via lines522. In one embodiment, those users that are top performers may be denoted as such by a graphical accent such as a flame524. The result is what may be considered a constellation. The example depicted in graph514is limited to two levels of relatedness. In various embodiments, the levels or degrees of relatedness displayed may be system dependent or user selectable.