One of the most common questions that is asked about Prophits is “how is this different from other stock screeners?” and the simple answer is that it isn’t a stock screener. Prophits is built to help in the idea generation portion of the research process. It is a tool that allows users to use their existing holdings as jumping-off points to find new stocks to research.
A great example of this is in the cases where you enter Mastercard and separately enter Visa. Two very similar companies would in stock screeners yield the same or similar results in this case maybe American Express and Discover for both Mastercard and Visa. However, Prophits does not follow sectors, it uses investor preferences. So Mastercard returned companies like Netflix and Philip Morris and Visa returned Progressive Insurance and Alibaba. Try it out yourself.
Even just to look at one of these you would find a great fundamental difference between the entered company and the results because they are connected by people, not screening statistics or sectors. People who are not consistent or exact, but often erratic and random, and yet these are areas where interesting ideas can be uncovered.
Simply put, the Prophits AI algorithm is virtually rounding up all the shareholders of a given company in the dataset putting them in a room to agree on 5-7 stocks to invest in and the output is those 5-7 stocks. It does this by using their portfolio percentage of each holding to show how much they like each stock and comparing that with the others in a list.
Similar to a stock screener this is only part of the research process, not a recommendation or conclusion for you to go and buy. The results given will provide you with companies to research that could potentially relate to your current holdings, companies you like, or potential holdings. The goal is to not make you have to rack your brain for hours trying to think of companies to research or have a list from a screener you have to chop down, but have a short list of interesting stock ideas that emerge from a different research process, based on professional investors’ real holdings.