Piggyback investing is the art/science of building portfolios based on mimicking the stock picks of some of the best superinvestors — asset managers who have exhibited long term market-beating results.
Early research (check out some here) has shown that investors can achieve similar returns by piggybacking as the can by investing directly with the asset managers themselves (something only a very wealthy investor can do).
Here are a few of the best resources I’ve found for piggyback investing:
- AlphaClone: My personal favorite (read my review of the site as a cure to investor insanity). Beyond just tracking the portfolio moves of top asset managers around the world, AlphaClone has built a full-blown research platform that allows investors to test piggybacking strategies to optimize returns.
- MarketFolly: Great site with ongoing commentary on what guru investors are buying and selling and why. You can get investor letters as well as some analysis on the stocks themselves that investors are buying.
- Manual of Ideas: You should be reading this as well as subscribing to the premium newsletters. Great stuff here that analyzes top investors’ moves and puts together screens and portfolios of some of the best picks of superinvestors like Warren Buffett, Bill Ackman, and Joel Greenblatt.
- Covestor and kaching: Two leading investment communities where both professionals and arm-chair portfolio managers manage real (Covestor) and virtual (kaching) portfolios where outside investors can use to generate new ideas.
- GuruFocus: Interesting free and premium offerings that track top guru buys as well as insider transactions. Can download results into spreadsheets for more analysis.
- HedgeFundLetters: This site links out to the monthly/quarterly/yearly letters top hedge funds and other asset managers send to their investors. Reading the wisdom of guru investors — what they’re buying and why — and how they describe the investment process in general is an amazing educational resource.
Anything I missed? Have your own favorite piggyback investing resource? Let me know in the comments below.