A glass of wine (OK, maybe multiple) was required to loosen the lips of a friend and a reader of this blog. “I have read your blog and it’s too technical for me.” Nothing like a bucket of water in the face to review everything we have been doing for the last few months.
She’s my perfect reader. Early sixties – do it yourself (DIY) investor and former financial industry veteran. If she doesn’t get “it” than nobody else will! So with these comments and a mild hangover I set about with new eyes not only looking critically at the blog but also reviewing my objectives for this blog in conjunction with Facebook.
Objectives of what I’m trying to do?
1. Demystify Finance. The way and what is taught in modern finance is not helping the public at large make sound financial investments. If the professionals want to use our concepts so be it.
2. Use social media platform (Facebook), so investors are helping other investors with their investments.
How are we demystifying finance?
We have developed Model Price. Simply put, model price, is our definition, of fair market value. We calculate model price everyday and display model price and its’ history on over 2000 securities in a database we created on Facebook.
Since the dawn of man, and our economic progress to date, relies heavily on trade and economic transactions. When we transact, we give value for value. We have a fair estimate of worth and we transact based on these inherent values. However, when it comes to the financial markets, particularly the equity markets, our common sense of inherent value eludes us.
So we developed a database where the public at large can see model price for Canadian and US securities. Simple. Simple line (purple dashed line) calculated on a nightly basis. This is free and available for public use.
So armed with this database, you the public, have the answer on what the company is worth? Simple. Would you pay a 25% premium for your new car? Would you over pay for lawn care? Would you not consider a purchase if something was “On Sale”? Equities go “On Sale” everyday. You liked Apple’s prospects; you could have purchased Apple at model price last December. Maybe you will again down the road, but at least you can enter a financial transaction that is priced like every other transaction in your economic world.
Use of Social Media
Social media is five years old. Even though social media is a child, its’ impact is shaking the world population and its’ institutions. Social media can also change the financial investing world as well.
This may take some time however, we see individuals helping individuals in terms of investing. We have set up a platform for this to happen on Facebook. We will provide the platform where individuals, if they so choose, can start their own advisory/blog, inside and outside the regulatory system, on an area that interests them. With over 2000 securities there is a multitude of investable strategies for individuals to follow. We are willing to help, teach, and educate all users to be better investors with more relevant financial concepts that we have developed and found.
So I believe through this blog, hopefully a reader can see why I was hurt by the “Your too technical” comment. There is no angle. There is enough money in social media for everybody by helping other people.
You will also see some changes in this blog – over the next few weeks. I will endeavor to rank each blog on four levels, using our four square logo. Each level will be more advanced, in terms of financial concepts (i.e., convexity), than the last. We will also create a “Getting Started” tab, with blogs that are basic to our work so new readers can start their process of learning, in a non-threatening way instead of jumping into the first blog of the site, whatever that maybe, which maybe too complex for the new reader to understand.
Many thanks to those of you for reading so far, and don’t be shy, wine or no wine, with your comments.