Hello all,
Thanks for reading this post, I look forward to your replies.
Synopsis- Joined a whatsapp investment group ran by a unnamed manager at a large unnamed investment firm. The managers of the group announce a stock that the group should invest in with buy and sell prices. It seems fishy but they have been 100% correct so far. So far, the group is also free to belong to.
Background: I have been investing in stock for 13 years. Through various channels of stock information and investment advice, I find this whatsapp group. The group is managed by a manager and assistant. There are 60ish other members of the group. Daily, this group sends out a stock market review. This comprehensive review includes a review on the health of the economy, trends, and market segments, along with the groups future investment plans. The manager will also evaluate any personal portfolio stock and provide recommendations. Based on the manager recommendations, I have avoided significant loss.
So, I was highly skeptical of the whatsapp investment group at first. The manager would release the weekly stock buy and sell prices. For the first 3 weeks, I didn't invest anything. I decided to watch the recommended stock and sure enough, it would climb as stated. At first it was only US domestic stocks. Of the 10ish recommended stocks, only 2 were losers. As the weeks went on, the manager slowly started to mention hong kong stocks in addition to US stocks. Again I was skeptical. Again the HK stock would rise as stated but with double digit returns.
Thus starts my buying period of this group. I started with small investments into the stock recommendations. As stated above, 80% of the US stocks rose as the manager predicted and I sold as recommended. With the profits, I was beating my various index funds. Eventually, less and less US stocks were recommended because the manager saw the declining volume in the US stock market and felt that the HK stocks are a stronger buy.
As of this writing, I'm on my fourth HK stock purchase the previous 3 holdings have been sold. My one month return has been 17.39%! Comparatively, my index fund return, for the same month, has only been 2.36%.
It still seems fishy to me that all communication is via whatsapp. Evaluating all the various whatsapp members of the group, it seems that there are a fair number of fake accounts that actively reply to the managers posts. Regarding the Hong Kong stock, the manager has been 100% correct with 17% returns. Typical stock holdings are 2-3 days. The manager of the group doesn't ask for any personal information regarding accounts numbers etc. The manager will only request to know how much of a stock recommendation will be purchased. Screenshots of limit buys are sent excluding all other info. The manager will also follow up with me to ensure that my shares of stock have sold. If a limit order wasn't filled, the manager will also advise on either on maintaining the limit order or increase it.
So does anyone have experience with this?
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