One of the most common principles of investing is “invest in what you know,” whether it’s a security that you’ve researched extensively or a company or brand that you believe in. Today, a new web site leverages the power of social media to help prospective investors understand not just what they know – but what their friends and connections in the social world know as well.
TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE: AMTD), is working with SwanPowers, a trio of Gen-Y entrepreneurs, as they launch
). This web site aggregates conversations happening within users’ social networks and tracks status updates, likes and check-ins against a proprietary database filled with keywords and phrases linked to publicly-traded companies.
LikeFolio shows users the top five publicly traded companies their networks are talking about and what those companies do. It then translates that information into potential investment ideas by showing users how a portfolio of those five securities would have performed over a 12-month period after an initial investment of $10,000.
The design is clean, the functionality easy-to-use and understand, the language conversational and to-the-point, and the database smart and robust – able to expose the ties of obscure product brands to publicly traded companies. The technology is patent pending and was designed by Gen-Y with Gen-Y – or other heavy users of social media – in mind, particularly those who are new to investing.
“People interact physically and socially with products every day but may not consider the potential to invest in the company that produces the product,” said Nicole Sherrod, managing director, trader group at TD Ameritrade. “The simple design and easy to understand language makes LikeFolio ideal for novice investors looking to become more aware and involved in the market through the lens of social media.”