Method and apparatus for choosing a stock portfolio, based on patent indicators

  • US 6,175,824 B1
  • Filed: 07/14/1999
  • Issued: 01/16/2001
  • Est. Priority Date: 07/14/1999
  • Status: Expired due to Fees
First Claim
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1. A computer-implemented method of selecting a portfolio of company stocks for a client which is predicted to have future performance that achieves a predesired financial outcome, the method comprising:

  • (a) calculating a score for a plurality of companies whose stock may be potentially selected to be in the portfolio by using the equation;

    score=

    i=0k-1


    α

    i


    xiβ



    i


    wherein xi are company indicators which include industry normalized patent indicators, α

    i are weighting coefficients for the respective company indicators, at least one of the weighting coefficients being non-zero, the weighting coefficients being selected so that companies which receive a high score are predicted to contribute to achieving the predesired financial outcome, and β

    i are weighting exponents, and that companies which receive a low score are predicted to not contribute to achieving the predesired financial outcome, each company being assigned to a predefined industry;

    (b) ranking the calculated scores from highest to lowest and generating recommendations of which company stock to purchase for the portfolio based upon the ranking; and

    (c) displaying the recommendations on a summary report for review by the client or the client'"'"'s financial manager, or buying amounts of company stock for the portfolio in accordance with the recommendations, or selling amounts of company stock from the portfolio in accordance with the recommendations.

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