Long-term investing
First Claim
1. A method of creating an investment fund or an investment trust, comprising acts of:
- using a computer to identify, according to one or more criteria, a plurality of financial instruments publicly traded on an exchange, each financial instrument being associated with a company;
grouping the plurality of financial instruments, based on market capitalization according to a criterion, into at least a first group of financial instruments and a second group of financial instruments, each financial instrument of the first group of financial instruments being associated with a company having a market capitalization that is larger than the market capitalization of each company associated with each financial instrument of the second group;
using a computer to allocate a weight coefficient to each of said identified financial instruments based on a value of the market capitalization of each associated company relative to values of the market capitalization of others of the companies associated with the plurality of identified financial instruments;
wherein allocating weight coefficients includes assigning a weight coefficient to each of the plurality of financial instruments such that for substantially any financial instrument associated with a first company having a market capitalization that is larger than a market capitalization of a second company, the financial instrument associated with the first company is assigned a weight coefficient that is greater than or substantially equal to the weight coefficient assigned to the financial instrument associated with the second company;
wherein allocating weight coefficients includes assigning a weight coefficient to each of the plurality of financial instruments such that for each of the financial instruments of the first group, a ratio of (a) a first weight coefficient assigned to a first financial instrument of the first group to (b) a second weight coefficient assigned to a second financial instrument of the second group is less than a ratio of (c) the value of the market capitalization of the company associated with the first financial instrument to (d) the value of the market capitalization of the company associated with the second financial instrument;
creating an investment fund or an investment trust based on the identified financial instruments and the allocated weight coefficients by using a computer to purchase an amount of each of the identified financial instruments, the purchased amount being based on the weight coefficients; and
substantially maintaining said purchased financial instruments for more than two years.
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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.
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Citations
36 Claims
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1. A method of creating an investment fund or an investment trust, comprising acts of:
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using a computer to identify, according to one or more criteria, a plurality of financial instruments publicly traded on an exchange, each financial instrument being associated with a company; grouping the plurality of financial instruments, based on market capitalization according to a criterion, into at least a first group of financial instruments and a second group of financial instruments, each financial instrument of the first group of financial instruments being associated with a company having a market capitalization that is larger than the market capitalization of each company associated with each financial instrument of the second group; using a computer to allocate a weight coefficient to each of said identified financial instruments based on a value of the market capitalization of each associated company relative to values of the market capitalization of others of the companies associated with the plurality of identified financial instruments; wherein allocating weight coefficients includes assigning a weight coefficient to each of the plurality of financial instruments such that for substantially any financial instrument associated with a first company having a market capitalization that is larger than a market capitalization of a second company, the financial instrument associated with the first company is assigned a weight coefficient that is greater than or substantially equal to the weight coefficient assigned to the financial instrument associated with the second company; wherein allocating weight coefficients includes assigning a weight coefficient to each of the plurality of financial instruments such that for each of the financial instruments of the first group, a ratio of (a) a first weight coefficient assigned to a first financial instrument of the first group to (b) a second weight coefficient assigned to a second financial instrument of the second group is less than a ratio of (c) the value of the market capitalization of the company associated with the first financial instrument to (d) the value of the market capitalization of the company associated with the second financial instrument; creating an investment fund or an investment trust based on the identified financial instruments and the allocated weight coefficients by using a computer to purchase an amount of each of the identified financial instruments, the purchased amount being based on the weight coefficients; and substantially maintaining said purchased financial instruments for more than two years. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 36)
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20. At least one computer readable medium having stored thereon instructions which, when executed by a processor, implement a method comprising:
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identifying, according to one or more criteria input by a user, a plurality of financial instruments publicly traded on an exchange, each financial instrument being associated with a company; grouping the plurality of financial instruments, based on market capitalization according to a criterion, into at least a first group of financial instruments and a second group of financial instruments, each financial instrument of the first group of financial instruments being associated with a company having a market capitalization that is larger than the market capitalization of each company associated with each financial instrument of the second group; allocating a weight coefficient corresponding to each of said identified financial instruments based on a value of the market capitalization of each associated company relative to values of the market capitalization of others of the companies associated with the plurality of identified financial instruments; wherein allocating weight coefficients includes assigning a weight coefficient to each of the plurality of financial instruments such that for substantially any financial instrument associated with a first company having a market capitalization that is larger than a market capitalization of a second company, the financial instrument associated with the first company is assigned a weight coefficient that is greater than or substantially equal to the weight coefficient assigned to the financial instrument associated with the second company; wherein allocating weight coefficients includes assigning a weight coefficient to each of the plurality of financial instruments such that for each of the financial instruments of the first group, a ratio of (a) a first weight coefficient assigned to a first financial instrument of the first group to (b) a second weight coefficient assigned to a second financial instrument of the second group is less than a ratio of (c) the value of the market capitalization of the company associated with the first financial instrument to (d) the value of the market capitalization of the company associated with the second financial instrument; indicating, based on the weight coefficients, an amount of each of the identified financial instruments to be purchased and held for more than two years. - View Dependent Claims (35)
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Specification