Wisdom of some crowds: Predicting investors success in a social trading platform

Yael Karlinsky, Shimon Kogan, Barak Libai, Verena Barbara Schoenmueller

Research output: Conference paperContribution

Abstract

Using data from a social-trading platform in which users allocate funds to investment "gurus" by following them, we identify a group of followers who systematically make following decisions that generate higher-than-average returns and maintain a higher-than-average investment portfolio consistently over time. The oracle followers strategy generates higher returns than other investment strategies such as following a the most popular gurus or following gurus randomly. We find that oracle are more diverse followers, make following decisions more frequently and have a longer life-time in the platform.
Original languageEnglish
Publication statusPublished - 7 Jun 2023
Event45th ISMS Marketing Science Conference 2023 - Miami
Duration: 7 Jun 202310 Jun 2023

Conference

Conference45th ISMS Marketing Science Conference 2023
CityMiami
Period7/06/2310/06/23

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