Investment portfolio

• US 20050060254A1
• Filed: 11/09/2004
• Published: 03/17/2005
• Est. Priority Date: 07/16/2001
• Status: Abandoned Application

• Current Assignee: Jones W. Richard
• Original Assignee: Jones W. Richard
• Inventors: Jones, W. Richard
• Application Number:
  US10/984,338
• Publication Number:
  US 20050060254A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 30/0245 Surveys
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The present invention is a method, system and investment product for allocating or structuring investment assets (such as marketable securities, bonds, mortgages, or other property interests, options or derivatives). The system, method or product enables selecting or grouping a number of individual financial instruments together into a portfolio (e.g., a fund or trust) and assigning weight coefficients to the selected financial instruments based upon a predetermined scale. After assigning the weight coefficients, the system or method purchases the selected instruments based on the allocated total purchase for each instrument (i.e., the total price of each instrument reflects is the price per unit×number of units, which correspond the predetermined weight coefficient). Then, the purchased individual financial instruments are allowed to fluctuate and perform for a predetermined time period (i.e., a number of years and months) without any further significant adjustments to the initial portfolio.

Claims

1. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

2. The method of claim 1 wherein said allocating includes dividing said selected stocks into several groups of stocks.

3. The method of claim 1 wherein said allocating includes dividing said selected stocks into three groups of stocks.

4. The method of claim 1 wherein allocating includes dividing said selected stocks into four groups of stocks based on price-to-earnings ratio, wherein said stocks in the first group include the highest price-to-earnings ratio, and said stocks in the fourth group include the lowest price-to-earnings ratio.

5. The method of claim 4 wherein purchasing includes purchasing stocks from the first group.

6. The method of claim 4 wherein purchasing includes purchasing stocks from the third and fourth group.

7. The method of claim 4 wherein purchasing includes purchasing stocks from the fourth group.

8. The method of claim 1 wherein allocating includes dividing said selected stocks into four groups of stocks based on price-to-sales ratio, wherein said stocks in the first group include the highest price-to-sales ratio, and said stocks in the fourth group include the lowest price-to-sales ratio.

9. The method of claim 8 wherein purchasing includes purchasing stocks from the first group.

10. The method of claim 8 wherein purchasing includes purchasing stocks from the third and fourth group.

11. The method of claim 8 wherein purchasing includes purchasing stocks from the fourth group.

12. The method of claim 1 wherein allocating includes dividing said selected stocks into four groups of stocks based on price-to-book ratio, wherein said stocks in the first group include the highest price-to-book ratio, and said stocks in the fourth group include the lowest price-to-book ratio.

13. The method of claim 12 wherein purchasing includes purchasing stocks from the first group.

14. The method of claim 12 wherein purchasing includes purchasing stocks from the third and fourth group.

15. The method of claim 12 wherein purchasing includes purchasing stocks from the fourth group.

16. The method of claim 1, 4, 8 or 12 wherein said selecting includes selecting said number of stocks being larger than 100.

17. The method of claim 1, 4, 8 or 12 wherein said selecting includes selecting said number of stocks being about 1000.

18. The method of claim 1, 4, 8 or 12 wherein said selecting includes selecting said number of stocks being about 3000.

19. The method of claim 1, 4, 8 or 12, wherein said selected time period is at least 2 years.

20. The method of claim 1, 4, 8 or 12, wherein said selected time period is more than 2 years.

21. The method of claim 1, 4, 8 or 12, wherein said selected time period is more than 3 years.

22. The method of claim 1, 4, 8 or 12, wherein said stocks are selected from a particular market segment.

23. The method of claim 1, 4, 8 or 12, wherein said stocks are selected from a particular market sector.

24. The method of claim 1, 4, 8 or 12 further including creating an investment trust.

25. The method of claim 1, 4, 8 or 12 further including creating a mutual fund.

26. The method of claim 1, 4, 8 or 12 further including creating a closed-end fund.

27. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks, including calculating said individual weight coefficients based on annual sales of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

28. The method of claim 27 wherein said allocating includes dividing said selected stocks into several groups of stocks.

29. The method of claim 27 wherein said allocating includes dividing said selected stocks into three groups of stocks.

30. The method of claim 27 wherein said selecting includes selecting said number of stocks being larger than 100.

31. The method of claim 27 wherein said selecting includes selecting said number of stocks being about 1000.

32. The method of claim 27 wherein said selecting includes selecting said number of stocks being about 3000.

33. The method of claim 27 wherein said selected time period is at least 2 years.

34. The method of claim 27 wherein said selected time period is more than 2 years.

35. The method of claim 27 wherein said selected time period is more than 3 years.

36. The method of claim 27 wherein said stocks are selected from a particular market segment.

37. The method of claim 27 wherein said stocks are selected from a particular market sector.

38. The method of claim 27 further including creating an investment trust.

39. The method of claim 27 further including creating a mutual fund.

40. The method of claim 27 further including creating a closed-end fund.

41. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks, including calculating said individual weight coefficients based on annual earnings of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

42. The method of claim 41 wherein said selected time period is at least 2 years.

43. The method of claim 41 wherein said selected time period is more than 2 years.

44. The method of claim 41 wherein said selected time period is more than 3 years.

45. The method of claim 41 wherein said stocks are selected from a particular market segment.

46. The method of claim 41 wherein said stocks are selected from a particular market sector.

47. The method of claim 41 further including creating an investment trust.

48. The method of claim 41 further including creating a mutual fund.

49. The method of claim 41 further including creating a closed-end fund.

50. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks including calculating said individual weight coefficients based on book value of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

51. The method of claim 50 wherein said selected time period is at least 2 years.

52. The method of claim 50 wherein said selected time period is more than 2 years.

53. The method of claim 50 wherein said selected time period is more than 3 years.

54. The method of claim 50 wherein said stocks are selected from a particular market segment.

55. The method of claim 50 wherein said stocks are selected from a particular market sector.

56. The method of claim 50 further including creating an investment trust.

57. The method of claim 50 further including creating a mutual fund.

58. The method of claim 50 further including creating a closed-end fund.

59. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks including calculating said individual weight coefficients based on price-to-earnings (P/E) of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

60. The method of claim 59 wherein said selected time period is at least 2 years.

61. The method of claim 59 wherein said selected time period is more than 2 years.

62. The method of claim 59 wherein said selected time period is more than 3 years.

63. The method of claim 59 wherein said stocks are selected from a particular market segment.

64. The method of claim 59 wherein said stocks are selected from a particular market sector.

65. The method of claim 59 further including creating an investment trust.

66. The method of claim 59 further including creating a mutual fund.

67. The method of claim 59 further including creating a closed-end fund.

68. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks including calculating said individual weight coefficients based on ratio of price-to-earnings (P/E) to growth of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

69. The method of claim 68 wherein said selected time period is at least 2 years.

70. The method of claim 68 wherein said selected time period is more than 2 years.

71. The method of claim 68 wherein said selected time period is more than 3 years.

72. The method of claim 68 wherein said stocks are selected from a particular market segment.

73. The method of claim 68 wherein said stocks are selected from a particular market sector.

74. The method of claim 68 further including creating an investment trust.

75. The method of claim 68 further including creating a mutual fund.

76. The method of claim 68 further including creating a closed-end fund.

77. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks including calculating said individual weight coefficients based on price-to-sales of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

78. The method of claim 77 wherein said selected time period is at least 2 years.

79. The method of claim 77 wherein said selected time period is more than 2 years.

80. The method of claim 77 wherein said selected time period is more than 3 years.

81. The method of claim 77 wherein said stocks are selected from a particular market segment.

82. The method of claim 77 wherein said stocks are selected from a particular market sector.

83. The method of claim 77 further including creating an investment trust.

84. The method of claim 77 further including creating a mutual fund.

85. The method of claim 77 further including creating a closed-end fund.

86. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks including calculating said individual weight coefficients based on price-to-book value of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

87. The method of claim 86 wherein said selected time period is at least 2 years.

88. The method of claim 86 wherein said selected time period is more than 2 years.

89. The method of claim 86 wherein said selected time period is more than 3 years.

90. The method of claim 86 wherein said stocks are selected from a particular market segment.

91. The method of claim 86 wherein said stocks are selected from a particular market sector.

92. The method of claim 86 further including creating an investment trust.

93. The method of claim 86 further including creating a mutual fund.

94. The method of claim 86 further including creating a closed-end fund.

95. A method of creating an investment portfolio, comprising the acts of:

selecting a number of stocks publicly traded on a stock exchange, said number of stocks being larger than 50;

allocating individual weight coefficients corresponding to said selected stocks including calculating said individual weight coefficients based on growth rate of companies of said selected stocks;

purchasing said selected stocks based on said weight coefficients representing relative values between said individual stocks; and

maintaining substantially said purchased stocks for a selected time period regardless of market capitalization of any of said stocks.

96. The method of claim 95 wherein said selected time period is at least 2 years.

97. The method of claim 95 wherein said selected time period is more than 2 years.

98. The method of claim 95 wherein said selected time period is more than 3 years.

99. The method of claim 95 wherein said stocks are selected from a particular market segment.

100. The method of claim 95 wherein said stocks are selected from a particular market sector.

101. The method of claim 95 further including creating an investment trust.

102. The method of claim 95 further including creating a mutual fund.

103. The method of claim 95 further including creating a closed-end fund.

104. An asset portfolio, comprising a number of at least fifty publicly traded stocks selected and purchased according to corresponding individual weight coefficients representing relative values between said stocks, wherein said individual weight coefficients are allocated prior to said purchase and wherein said initially purchased stocks are substantially maintained for a selected time period regardless of a market capitalization of any of said stocks.

105. The asset portfolio of claim 104 wherein allocation includes dividing said selected stocks into several groups of stocks.

106. The asset portfolio of claim 104 wherein allocation includes dividing said selected stocks into three groups of stocks.

107. The asset portfolio of claim 104 wherein allocation includes dividing said selected stocks into four groups of stocks based on a price-to-earnings ratio, wherein said stocks in the first group include the highest price-to-earnings ratio, and said stocks in the fourth group include the lowest price-to-earnings ratio.

108. The asset portfolio of claim 107 wherein said purchased stocks are from the first group.

109. The asset portfolio of claim 107 wherein said purchased stocks are from the third and fourth group.

110. The asset portfolio of claim 107 wherein said purchased stocks are from the fourth group.