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Post by Warren Lee on Apr 17, 2015 10:55:04 GMT
Well, there's a heart-warming (if a little blush-making) note on which to start back on forum duty after my return from bobbing around in the North Sea for a while ( - OK too much information ). I guess many peoples' concern (certainly mine at any rate) would be a wish to retain anonymity, and that could limit the number who would wish to take part. Yes Ramblin Rose, I'm seeing that to be true. So I've decided to only interview EllJay, and if anyone else respected wants to participate (and you're doing UK lending of course), just PM me and we'll discuss it. - Warren
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Post by Warren Lee on Apr 1, 2015 14:04:09 GMT
I'd be happy to give you an Austrian perspective. There's also an academic at Alternative Finance Research Program, University of Cambridge called Bryan Zheng Zhang who's been working specifically on p2p finance. Hey RuPaul, thank you for that info and if we delve into Austrian lending I know where to look! Thanks again.
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Post by Warren Lee on Mar 27, 2015 12:25:13 GMT
I am baffled yet delighted by my inclusion among the more respected of this community, though I do feel that most of my input is more flippant than felicitous, so it will be better to concentrate any published document (which I will read avidly) on the observations of the other listed investors. Besides, nursing care and a constant supply of old tooth friendly fruit could be expensive. At the very least, I can definitely see you'd be good for entertaining quotes! LOL!
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Post by Warren Lee on Mar 27, 2015 2:48:51 GMT
I will definitely look at the like count as well as the actual testimony from their peers. I'll be going off of "feel" a little bit too, the cream usually rises to the top.
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Post by Warren Lee on Mar 27, 2015 2:45:07 GMT
Thanks guys, when enough names come in. I'll just request that anyone in the group of voted names contact me if they want to be interviewed.
It's good to see the first set of names come through, I'll write them down in my notepad right now!
Keep them coming!
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Post by Warren Lee on Mar 26, 2015 14:53:21 GMT
Who knows more than you do? It's a question I've been pondering. I've enjoyed just reading the posts here and I see now that UK lending is more advanced than American lending. In my other thread from a few weeks back ( p2pindependentforum.com/thread/2281/wellesley-gurney-lending-experts-tips ) many people thought that too many execs were giving advice in the article only to line their pockets. I disagree, but I understand how that could be a concern. But many P2P newbies got some good info from the execs. Here's the issue, so many P2P forum guys aren't newbies. So... That gave me an idea to do an article specifically for the more informed investors, like you in this forum. In fact I plan on doing an article specifically focused on this forum. It should bring a lot of attention to you guys and your forum, the execs interview was covered in Bloomberg Business. I just finished my most recent interview with finance bloggers on the topic of P2P loans & debt consolidation and now I'd like to interview Elljay the 5-10 most knowledgeable forum members here in regards to investing tips. The only problem is. WHO knows more than you?
I can't yet set up a poll because I don't have a list of forum contributors that I know you respect and would like to see featured on an international national lending blog. So please give me names of the person that you always listen to or read from here. (if you know a few from other forums that's OK too, just let me know their forum name and where I can find them to contact them for an interview...) It's great publicity for this forum & gives me some to write about on the UK side of P2P lending, Win-win. SHORT VERSION:* I want to interview EllJay & the 5-10 most informed UK forum members here & elsewhere for an article. * Tell me who you think should be interview (and why...) in this thread.
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Post by Warren Lee on Mar 10, 2015 12:05:35 GMT
1. It's not about picking the winners; it's about avoiding the losers P2B lending is a form of fixed-income investment. In the absence of flipping loans for capital gains, your upside it limited to the coupon, your downside is possibly par. So don’t get carried away by the extra 2% cashback or 1% on the yield since this isn’t going to pay for a significant loss on default. 2. Don’t over-diversify and don’t obsess over quick reinvestment Diversification applied over multiple parameters (platform, sector, single name credit, maturity) is generally to be recommended. However, be careful not to diversify passively (diversifying without thought or for the sake of it). This can actually increase the risk of the portfolio (for example by exposing your capital to lower credit quality loans or increased operational risk via weak platforms). Better to own a concentrated portfolio of well-research loans than a diversified portfolio of random toxic waste. Similarly, a few days, a week or a even month of dead-time is far better than parking your capital in a poorly researched loan that then defaults. 3. Think in terms of probability weighted return per unit risk, not yield. Focus on the risk-adjusted return by thinking in terms of probabilities rather than modal outcomes. In addition to the non-default scenario, consider a range of possible downside scenarios for the loan (default probability x recovery rate), assign probabilities to each scenario and then calculate the pay-out ratios. Overweight those loans with transparent and attractive payout ratios and drop those with opaque or poor ratios. I like the mindset of avoiding the losers instead of trying to pick the winners, good explanation too. I'm still in the learning stages myself, I like to read the advice of more tenured investors, in which it sounds like you are.
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Post by Warren Lee on Mar 9, 2015 13:01:40 GMT
Great idea Ian!
I'm very interested in seeing the "Other" answers as well.
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Post by Warren Lee on Mar 9, 2015 11:53:16 GMT
It's well within their interest to give you the best tips, if you are walking away with poor returns you're not likely to continue investing, thus they lose an investor. [...] Besides that, even if I could get a good group of lenders to do that, many people wouldn't be willing to listen to them. [...] I think the point is, the article is aimed at 'novice' P2P lenders. I suspect that in this context that means people with little experience in anything more than regular savers accounts and has just entered P2P - rather than many on this forum who (while they may still self-class themselves as a novice) are not under that same umbrella. I note one gent uses a figure of 10K USD as if to say that is much more than his readers would be investing. Platforms want more volume, they need borrowers loans to fill and to get that they need more lenders. Attract them with easy catch-all auto-invest tools, and simultaneously get more loans by lowering the safety bar when it comes to risk. Their advice seems to be geared more towards people just lending more, full stop. That is really where their vested interests lie, and so long as the overall average rate of return still beats the banks that these 'novices' came from, everyone remains happy (-ish). That's the way I see it. If their advice was along risk assessment, they will loose business from some loans because their advice is to steer clear, but I could imagine a case where profit may come before the customers investment safety (not, in any way, an accusation of anyone or of any platform). You may be right, that those 'novice' lenders won't listen to a group of nobodies who claim to be experienced in P2P lending. But I think that most people here would listen and consider what was said, because they're not the same as the target for your article. But I don't think this is really necessary because most strategies and tips all come down to the same things, and (to me) it's more a case of laziness than not knowing what I should be doing... PS mixing UK & US platforms... Is that a good idea if your article is targeting new (or nearly-new) UK-resident P2P lenders? I don't think so. Starting with a caveat 'ignore references to this and that if you are in the UK' isn't good. Thanks for your input Xell, it helps! Although I don't agree that combining US & UK experts in one article is a problem, with the full bios and links to each website, readers need to do a couple more clicks to find out more. The article is aimed at novices for sure, they still need to do due diligence when putting their money on the line. The article is for general P2P lending tips, not platform or country specific. Sooooo many people have just heard of P2P lending this past week, literally. They need a starting point, this article isn't the finish point. I do understand your concern though. I have full confidence that these experts are giving tips that they would give to their family and friends. Just from talking to them, many are genuinely nice people and not the snakes some make them out to be because they are executives. People are people, I left out answers from some companies that gave me the company line or obvious throw away answers. But, I'll tell you what. You all gave me a great idea. I'd love to interview the top 3-5 "p2p forum experts" from each forum and see how that goes. I'll see if I can organize that somehow. Any ideas on how I could quantify who are the biggest expert? Should it be post count, forum vote, tenure on the forum? If I can find a viable way to do this, I will. I know many of you participate in other forums as well, so you could help me compile a list of forum experts and we'll see how that goes over. What do you think?
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Post by Warren Lee on Mar 8, 2015 23:29:58 GMT
It's well within their interest to give you the best tips, if you are walking away with poor returns you're not likely to continue investing, thus they lose an investor. On top of that, these people obviously understand the platforms better than anyone and know what is happening behind the scenes. They definitely have insight that I personally will employ(I'll pick and choose of course...). Bugs4me, I would love to do a lenders' experience article, the time-consuming part isn't the issue. Trust me, chasing these people down was nothing but time-consuming, lol. The problem with interviewing normal lenders is that, I can't substantiate that they have knowledge of the subject unless they are willing to show me their financial reports/records, etc. Not many people willing to do that. Besides that, even if I could get a good group of lenders to do that, many people wouldn't be willing to listen to them. Because they are just "regular people" that nobody has heard of. There will always be naysayer, no matter what. So I just continue moving forward and giving more information to be consumed and digested, many will benefit greatly from. Points(s) taken and agreed but I am aware that understandably their opinions are bound to be biased and whilst they may loose an investor here and there they will no doubt gain more than they loose from the publicity generated especially in view of the derisory returns offered by the traditional savings route. Whilst many P2P platforms are obligated to state the risk involved in P2P nonetheless this is rarely (if ever) stated by the experts who are interviewed. I feel many lenders/investors are simply dazzled by the headline rates being offered and it stands to reason that sooner or later one of the platforms will be reported negatively by the media which will possibly impact the whole industry. I concede that it would of course be virtually impossible to track down a representative sample of lenders. There may be one or two willing to come out of the woodwork but then you would need to know what level of risk they were most comfortable with. Anyway, thanks for your research into this. It's always good to know what the P2P platforms think. Good points, I believe in getting as much info from as many sources as possible and piecing together a good strategy from that intel. Information is always good.
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Post by Warren Lee on Mar 8, 2015 21:25:15 GMT
I am not sure if this thread is totally serious or slightly tongue-in-cheek, but it seems fairly clear that the 30 'experts' know very little. If you really wanted to find out how best to make money from P2P lending, wouldn't you be better off with a panel of succesful P2P lenders rather than a panel of people who want to make money from P2P lenders? Now that would be an interesting exercise. Many - if not all of those interviewed have a vested interest in attracting more funds to the platforms. But still the journalists seem to continue interviewing them rather than take the more time consuming route of seeking out lenders' experiences. It's well within their interest to give you the best tips, if you are walking away with poor returns you're not likely to continue investing, thus they lose an investor. On top of that, these people obviously understand the platforms better than anyone and know what is happening behind the scenes. They definitely have insight that I personally will employ(I'll pick and choose of course...). Bugs4me, I would love to do a lenders' experience article, the time-consuming part isn't the issue. Trust me, chasing these people down was nothing but time-consuming, lol. The problem with interviewing normal lenders is that, I can't substantiate that they have knowledge of the subject unless they are willing to show me their financial reports/records, etc. Not many people willing to do that. Besides that, even if I could get a good group of lenders to do that, many people wouldn't be willing to listen to them. Because they are just "regular people" that nobody has heard of. There will always be naysayer, no matter what. So I just continue moving forward and giving more information to be consumed and digested, many will benefit greatly from.
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Post by Warren Lee on Mar 8, 2015 19:41:42 GMT
Use automation to invest/reinvestHell no I think it all depends on the platform and how much control the user has. I've used it at Zopa in the past, and at FS when loans are to be renewed, and I'm using it at AC. The alternatives are spending more time specifying all reinvestments, and/or letting funds accumulate earning nothing until manually reinvesting. If the results are predictable and acceptable, then why not use it? That's how I see it too Mike1531, it depends on the platform and what technology you're using. We also interviewed the CEO of Lending Robot, an auto-investing technology company. Lending Robot is great for US investors because of the way it works on the Prosper and Lending Club platform. The major banks in the US are cherry-picking loans as soon as they hit the platform. For retail investors in the U.S., using automation will soon be the only way to go if they don't want to get left with scraps. I don't know if it's the same situation in the UK and the banks involvement with P2P loans.
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Post by Warren Lee on Mar 8, 2015 15:42:45 GMT
I really appreciate that Ablrateandy. Honestly. It was a lot of work, but very exciting too! We are currently working on 2 other roundtable articles concerning different aspects of P2P investing as well as borrowing with different experts for each piece. All interviews have been wrapped up, now the formatting fun(nightmare) begins, ha. - Warren
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Post by Warren Lee on Mar 8, 2015 13:31:05 GMT
And a big thanks to Elljay for allowing this post and helping me understand that the US & UK IRAs are different. I have to make an edit to clarify that.
We had both UK & US experts, most of the advice applies across the board. But the IRA advice does not.
Being that I am more familiar with US P2P lending than UK investing, I want to learn from you all.
Please comment & tell me:
1. If the article had any value to you.
and/or
2. Which business person or finance blogger you'd like to see interviewed on the next P2P roundtable interview.
Cheers,
Warren
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Post by Warren Lee on Mar 8, 2015 2:54:39 GMT
It was 1 interview, 30 world-class P2P lending experts and their 3 best tips to make your investment returns better than ever. It was sheer EPICNESS(if that's not a real word, I'll claim it as mine ) I never post here because so many of you are waaaaay over my head in P2P Lending knowledge. I'm a reader, A lurker, I have a talent of sniffing out B.S. know-nothings and ignoring them and identifying those who know their stuff and soaking it in so that I can go and take action on it. That's the reason I decided to interview some of the leading experts in the world of peer-to-peer lending. And BOY did they deliver, including Graham Wellesley, Ian Gurney, Aaron Vermut of Prosper Marketplace and LendAcademy's very own Peter Renton. Anyway.... To the point. I'm Warren Lee, Editor-In-Chief of The Lending Mag. My staff and I interviewed some of the most respected and recognized financial minds within the peer-to-peer finance community. Our experts include Presidents, CEOs and Chief Investment Officers of major peer lending companies and investment management firms. We also caught up with top CFAs, a handful of extremely knowledgeable thought leaders and creators of leading educational resources online regarding peer-to-peer lending and investments. We wanted to hear the answer to a simple but powerful question: “If you could only give a novice peer-to-peer lender 3 tips for successful investing, what 3 tips would you give?”
These experts gave me over 10,000 words of Top-Notch P2P lending advice to share with you. But here's an abbreviated tally of the top 5 answers: Most Important P2P Lending Tips (as voted by 30 experts!) #1 Diversify your loans/Spread your money over many loans – 16 votes #2 Do your homework/research – 12 votes #3 Invest in an IRA– 5 votes (this particular tip was strictly from the US experts & applies to US lending only)#4 A. Reinvest your returns, don't let returns sit idle – tied with 4 votes
B. Use automation to invest/reinvest – tied with 4 votes
C. Make loans on various platforms – tied with 4 votes #5 Prepare yourself for limited liquidity – 3 votes
Here is an alphabetized list of the experts The Lending Mag interviewed:
Aaron Vermut, Brendan Ross, Brian Bartaby, Charles Moldow, Christian Faes, Claus Lehmann,Dara Albright, Don Davis, Emmanuel Marot, Giles Andrews, Graeme Marshall, Graham Wellesley, Gregg Schoenberg, Ian Gurney, James M. Dahle, MD, Jason Fritton, Joe Udo, Joseph Hogue, Marc Prosser, Miranda Marquit, Nick Clements, Peter Renton, Ryan Weeks, Sam Dogen(AKA Financial Samurai) Sam Hodges, Sam Ridler, Steve McGarry, Stu Lustman, Tore C. Steen, Zack Miller It was awesome, and the coolest part was that so many of these guys are so busy and so RICH(lol), but the VAST majority were super-cool and accommodating. Heck, CEO of Zopa, Giles Andrews went back and forth with me for the longest time when my email service was screwing up, just to let me know when my messages were not acting all funky anymore and I got things fixed(long story). The man runs the first and biggest peer-to-peer lending site in the UK, I'm sure he had better things to do. Just good guys(and gals too). And a special thanks to Peter Renton for including the interview in his weekly roundup! Truly an honor for The Lending Mag. It was a great experience and it's a great info resource to help you increase your returns and compete against the banks for better loans. If you want to see the entire interview, you can see it here: thelendingmag.com/peer-to-peer-lending/
Full Disclosure: 2 of the 30+ information links from our interview are referral links, the first referral link is the link to Prosper Marketplace in Aaron Vermut's interview and the 2nd referral link is an Amazon link to "The White Coat Investor: A doctor's guide to personal finance and investing", a book from James M. Dahle, MD.
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