The concept is old: if you want to be successful, find out what successful people are doing and imitate it. This has worked with varying results for ages in all fields of human endeavour. In the past, it has been difficult for those who want to trade shares on major markets to know what those who are successful are actually doing, due to the lengths to which many investors go to keep their investment strategies a secret.
Developers of an app called iBillionaire are trying to change that with an app that uncovers what 21 billionaire Wall Street traders are doing with their money, theoretically allowing you to do the same thing the billionaire investors are doing.
The app performs a task that is extremely difficult for most—it sorts through mandatory filings sent to the Securities and Exchange Commission (SEC) and amalgamates them into what they see as a usable format. This allows investors to move quickly and try to reap the same benefits that billionaire investors often do.
How Smaller Investors Benefit
We love apps that solve a problem and provide a benefit to a niche. iBillionaire does both of those quite well, but how does it perform for the individual investor?
Critics of this app say that it doesn’t provide the information fast enough. Even though iBillionaire provides information faster than any other source, it isn’t fast enough to fully combat the “Warren Buffett Effect,” which means that whenever Buffett buys a stock, the price immediately rises after his announcement. This is also true to a lesser level of all of the investors monitored the app.
So, does it really work?
According to Raul Moreno, the app’s co-founder, it outperforms the S&P 500. This is not the best endorsement of the product, but it still indicates that the app may yet justify its popularity.
What We Think
We like the idea behind this app and hope it inspires someone to do something similar here in Australia. We think iBillionaire shows that there are plenty of niches that can benefit from creative apps to give consumers something they either want or need. iBillionaire sold 70,000 apps in two weeks.
Would something like this work for the Australian Securities Exchange? Call 1300 650 253 if you’re interested in app creation.