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Launch HN: Alinea (YC W21) – Invest in stocks you believe in

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131–139 of 139 posts

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#131

I hate to pour cold water here, but a stock I believe in is one that financially performs well. It doesn't matter what the mission statement or philosophy behind it is. I think all those intangibles are highly overrated as an actual concrete $-demonstrated strategy for investing. I find very mixed / uncorrelated results of companies emphasizing ESG issues leading to good financial performance. Larger factors control…

To Wit: Why the Biggest U.S. ESG Fund Has No Direct Renewable Holdings “We hesitate to overplay the ESG hand,” says Parnassus Core Equity Fund Co-Manager Ben Allen.[1]

[1]:https://www.bloomberg.com/news/articles/2021-03-03/biggest-e...

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#132
post #121
post #55

I think the coming of companies like this signals the end of the bull market, the bubble is close to bursting. Every milkman is trying to get rich on the stock market. It was like this in 99. It was like this in 08. And before the german mark fell. "Side by side with the wealth were the pockets of poverty. Greater numbers of people remained on the outside of the easy money, looking in but not able to enter. The crime…

How are you positioned to take advantage of this? What's your portfolio like?

Have put options on a few tech stocks which have doubled in value in about three weeks

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#133

I guess I would want to see the outcomes of the average user. If the median user underperforms the S&P 500, which they likely will, I feel it's misleading to say you're empowering people. The alternative, meme-y yolo stocks, are worse, but is this really better if the informed choice is highly likely to be sitting in an ETF? > We also wanted to move away from a gamified experience which tends to cause stress and anxi…

Doesnt the median user earn the market return which we could say is S&P 500?

If everyone's strategy were to buy some collection of assets and sit on them, you would expect some definition of the average individual to earn the average market return. But users of trading platforms are probably trading actively, and making mistakes. It's also likely that the average user would benefit from a diversified portfolio to reduce the risk of losing big all at once. They're less likely to get that picking stocks themselves.

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#134
post #110

I guess I would want to see the outcomes of the average user. If the median user underperforms the S&P 500, which they likely will, I feel it's misleading to say you're empowering people. The alternative, meme-y yolo stocks, are worse, but is this really better if the informed choice is highly likely to be sitting in an ETF? > We also wanted to move away from a gamified experience which tends to cause stress and anxi…

> If you're taking material personal financial losses and you're not feeling stressed, I'd say there's a problem I disagree. Markets tend to swing around but trend upwards on average. If you are emotionally tied to the big red or green number when you see when you open up your brokerage app, you're bound to make bad, emotionally-based decisions. (Edit: I guess our disagreement might come down to the definition of "ma…

I guess you're right. But conversely if something you're invested in "for the long haul" has a demonstrated long term negative trend, I'd probably want that to be on my radar.

On some level my concern is that this platform will get people interested in making highly undiversified portfolios, allow them to lose their shirt, and not give an indication that their current strategy is failing and that they should STOP putting more money in.

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#135

Earlier quoted context omitted.

I don't think that's intuitive at all. If you lack any financial experience, merely looking at cash flow is going to be intimidating.

That's why you look at EBITDA and ignore the walk from Net Income to Cash Flow. If you're not looking at statements, all I'm saying is "EBITDA is the cash generated (i.e. the profit) before taxes or interest on loans"

Interest on loans varies wildly by industry though. EBITDA is certainly something on can reach a useful level of understanding on with a bit of effort, but it's hardly intuitive to someone who's never looked at financial statements before.

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#136
post #110

Earlier quoted context omitted.

> If you're taking material personal financial losses and you're not feeling stressed, I'd say there's a problem I disagree. Markets tend to swing around but trend upwards on average. If you are emotionally tied to the big red or green number when you see when you open up your brokerage app, you're bound to make bad, emotionally-based decisions. (Edit: I guess our disagreement might come down to the definition of "ma…

I guess you're right. But conversely if something you're invested in "for the long haul" has a demonstrated long term negative trend, I'd probably want that to be on my radar. On some level my concern is that this platform will get people interested in making highly undiversified portfolios, allow them to lose their shirt, and not give an indication that their current strategy is failing and that they should STOP put…

Makes sense, that is a valid concern. I think the right balance is somewhere less emotion-driven than Robinhood’s dopamine cycle, is all.

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#137

I think the premise of it is awesome, but it can only be wrong. I'd like some data that proves that the retail investors of your platform end up beating S&P for a start. Companies themselves struggle to even understand their own balance sheet. There are plenty of services which offer aggregated data about balance sheets with typical market formulas. Basically there's a huge industry of sell side analysts that often c…

all true, but does it even matter anymore? Tesla has a P/E of over 1,000, for example. increasingly people invest based on the story and the ebb and flow of social media. does the balance sheet play into this? it doesn't appear so...

we always had times in the stock market where people invested like you said, it isn't the first time. i'm talking about the serious people that stick investing for decades and build real portifolios.

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#138
post #132
post #121

Earlier quoted context omitted.

How are you positioned to take advantage of this? What's your portfolio like?

Have put options on a few tech stocks which have doubled in value in about three weeks

Nice! Definitely being long vol in the current market environment is a good call imo.

Re: Launch HN: Alinea (YC W21) – Invest in stocks you believe in

#139
@Alenia, keep forging forward, know that opinions are subjective, and focus on helping the customer stay the course when the markets are down so they don't panic, and sell low and buy high. Objectively, this behavior is the biggest cost to investors. If you can help them through this, they will see fruit in time. The markets will go up and the markets will go down - it's the nature of the beast. Good luck to Alenia! Soon, the customer will tell you if you are or are not giving them what they need.

As to the market, at the end of the day no matter how much research and due diligence are applied, no matter how much you take EBITDA into account, it's still a roll of the dice. No one controls what fully moves the markets. Natural disasters, company fraud, deception, a CEO who has an affair, lack of company innovation, consumer fads, and shifts, etc. You can do all the research in the world and follow the best discipline but that's no guarantee. The markets have been programmed to swing when they shouldn't and not when they should. No different than when a company beats expectation but doesn't meet the "subjective" opinion of a few analysts and the stock tanks when in reality it should have risen, or at a minimum stayed flat. The entire financial world is subjective. If a company like Alenia can get investors to put money in the market in a moderate play, then over time that investor will or should in theory/historic make money. They may not have unrealistic returns like a few lottery winners out there do, but over time they will produce fruit. You can't play the same guitar with stocks and mutual funds - they have different strings.

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