Practice Your Money Management Skills

Marketocracy is taking its virtual investing platform into the real world by pooling user advice.
Magazine Contributor
1 min read

This story appears in the November 2007 issue of Entrepreneur. Subscribe »

Marketocracy.com is more than a website where aspiring money managers can practice investing in stocks; the company also manages a very real and highly successful mutual fund. To make winning investment decisions, San Mateo, California-based Marketocracy examines which of its 80,000 members have the best fictional portfolios. About once a month, the top 100 are chosen as part of a paid advisory board. When an advisor makes a promising stock recommendation, Marketocracy vets the advice with all the members who have that stock in their online portfolios. While members don't play with real money, the company does. Co-founders Ken Kam, 47, and Mark Taguchi, 51, say the collective intelligence of their virtual advisory board has identified some hidden investment gems. "When that happens, I call [some of the board members] and ask, 'What is the conventional wisdom about this stock, and why is it wrong?'" says Kam.

The strategy seems to be working: The Marketocracy mutual fund has grown to $55 million under management and posted an 80 percent total return since its inception in November 2001.

More from Entrepreneur

David provides constructive insight to help businesses focus on their company growth, build brand awareness and know when and how to raise money.
Book Your Session

For a limited time only, get this bundle of Entrepreneur PressĀ® titles for less than $30 (60% OFF) on our bookstore when you use "LEAP" at checkout.
Buy Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.