Hardeep Walia on Investing In Ideas
Released on 06/09/2014
Motif is an online broker with a twist.
We don't want you to buy individual stocks and securities,
because it doesn't work.
Instead, we want you to invest conceptually.
We want you to invest in ideas.
It could be an interesting technology trend like robotics,
it could be a trading strategy
that buys the most beaten-down stocks
every week automatically and rebalances,
or it could be an Ivy League endowment model
that just sits there and manages itself over time.
We take these ideas and allow you to act on them
by turning them into what we call a motif,
and a motif, very simply, is a intelligently-weighted
basket of stocks, up to 30 stocks
built around one of these ideas,
and you can purchase a motif in one click
for the cost of a single stock transaction,
$9.95 to buy 30 stocks in real time,
and you can buy a motif that we built
or you can buy a motif that our community has built.
It took us about a year to build 120 of these motifs.
It took our customers, our community,
less than six months to build 35,000 of these motifs.
There are actually more motifs than there are
mutual funds and ETFs in the United States.
You can think of a motif as a lens into the markets.
Do women make better CEOs than men?
They are better.
Does it pay to be gay?
There's a motif there, too.
These ideas are around us all the time,
and it's about taking the notion of investing
and making it easy, whether we're a newbie investor
or a sophisticated investor, we all think conceptually,
and we believe you should invest conceptually.
When you find a motif that you like,
let's pick a motif that's trending well right now,
like modern warfare.
When you click on the motif, we give you a very simple blurb
of what the motif's thesis is.
And you hover over here,
you can see how the individual stocks have done.
If you click on Performance,
you get to play around with the performance,
see how this motif has done in different time periods.
You can type in a equivalent benchmark,
a fund, or an ETF, and you can see how this motif has done.
One of the reason this motif typically outperforms
a benchmark index is because we have zero fees,
and when you're competing against
a product that compounds management fees over time,
you can see we have an inherent advantage,
but the other reason is a lot of what we do is
we take concepts and rather put
generic defense industry today,
this motif is built on high ROI warfare.
Even in a world where we're cutting defense spending,
we're moving to higher ROI weaponry,
and so there's just a different way to go invest here.
If you said you had a different perspective on this,
you could click Customize, and all of a sudden
you'll see these sliders pop up.
I can take down Command and Control.
Today, you stop at zero when you move into,
move the slider to the left.
Pretty soon it'll move into negative territory
later on this year, so you can actually go long-short
just by moving these sliders.
Unlike a fund, you purchase direct to ownership
in these securities, and you click purchase,
and all of a sudden you've bought
$250 of this motif, and you're all ready to go.
We are the world's first investing platform made social.
And if you click on what others think,
we tell you what other people think about this motif.
You can see, 89% bought the motif as-is,
11% customized it.
And one of the things we'll do later on this year
is we'll show you, with permission, the people customizing.
People tend to customize things they understand,
and as we aggregate all this data,
you can pick a trend on anything.
We have an Obamacare motif, for example,
and we can tell you what everybody's thinking
about Obamacare at a very detailed segmentation level.
We can tell you what rich people, poor people think,
young people, old, and we are using this data
to help us better understand the world we live in.
The day after Hurricane Sandy, we launched a
Rebuilding After Sandy motif, not to make money,
but simply to allow us to track
what was going on in the world around us.
So this is a new way to think about investing,
and there are lots of ideas, and as I mentioned,
it took us a long time to build these motifs.
We have these professional investors
that have actually built these products.
But our community is very passionate,
and they've built a whole universe of motifs,
many of which are doing really well,
and what's magical about this is you'll see people
with no background in investing building amazing product,
and these are their actual returns.
These are not backtested.
These are motifs that our communities are building,
and so it's a very, very different way
to think about investing.
Starring: Hardeep Walia
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