Meet Jeppe Kirke Bonde, the most copied trader on eToro and get a glimpse of eToro’s innovative CopyTrader feature.
Every time Jeppe Kirk Bonde makes an investment, more than 22,000 people all over the world are automatically making the same investment. Jeppe is the most copied investor on the eToro platform and has approximately $70 million of assets under copy (AUC).
Jeppe’s track record over time has legitimately earned him tens of thousands of copiers. But, why would someone consider copying Jeppe in the first place? Was it easy to foresee that someone would have such a track record a decade ago? These questions and more go to the heart of the unique CopyTrading feature that eToro offers.
“Too many investors end up looking at how the last quarter has been for the companies and predicting what will happen to interest rates, instead of diving into the companies and understanding them,”
Jeppe Kirk Bonde.
Another way to invest
eToro’s CopyTrader feature gives you another way to invest. Whether as part of a traditional portfolio or in place of it, when you use CopyTrader, you are making a new type of investment decision. Instead of analyzing and researching various companies, you are evaluating various investors to see who fits best with your investment goals.
In deciding whom to copy, you can see an investor’s strategy in their profile, you can also view their risk score, current portfolio make-up, past performance broken down into months and years, number of copiers, followers, assets under copy (AUC), check out their feed posts and even ask them questions. After analyzing all of the information, it is your job to figure out which investor best aligns with your investment objectives and how much money you are willing to invest with them.
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Jeppe’s strategy
Jeppe Kirk Bonde believes there is a formula for beating the market. He believes in researching companies down to the smallest detail and diversifying investments. Fundamental analysis is a key tool when you want to find the undervalued stocks.
“Too many investors end up looking at how the last quarter has been for the companies and predicting what will happen to interest rates, instead of diving into the companies and understanding them,” says Jeppe Kirk Bonde.
He has an insatiable desire for knowledge and is willing to spend days on in-depth research. His process for choosing companies can take about a month where he sifts through numerous data using certain criteria before settling on which companies to invest in.
“For me, it’s about what return a share can deliver throughout its `lifetime’. What are the companies ultimately worth? What do their strategic options, competitive situation, culture and management look like? Next, I look at what they earn now and what they will earn in the future. If the situation changes, I will sell the share,” says Jeppe Kirk Bonde.
Jeppe’s portfolio
Currently, Jeppe Kirk Bonde owns shares in 60 companies across a wide range of sectors. The portfolio contains everything from technology, banking and healthcare shares to energy, raw materials and property shares. However, despite the diversification, he sees one theme that will shape the stock market: artificial intelligence — or AI.
“AI is one of the biggest themes — for the companies that want to make money from providing services within artificial intelligence, but also the companies that want to make money from using the technology,” says Jeppe Kirk Bonde.
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How Jeppe views Nvidia
After explaining his strategy in theoretical terms, Jeppe gives an example of how he implements it with the well known company, Nvidia. This company has become the symbol of this year’s AI boom, and is a stock that has been a fixture in Jeppe Kirk Bonde’s portfolio in recent years. Recently, however, he sold his shares in the company.
Why?
According to Jeppe, Nvidia’s valuation has become overly optimistic. “A large part of the value lies in the low probability that a huge amount of value will be created. Now Nvidia is not just priced to be a healthy company that makes chipsets. The price is based on the fact that Nvidia is a company with the smartest engineers in the world, who work with the most exciting technology.”
Jeppe Kirk Bonde warns that there is a risk that others will win with the medal. He, therefore, prefers to look at companies that already have a healthy core business, but have the resources to develop the solid AI solutions that will be the winners.
It’s about being smart
CopyTrader adds another investing dimension to the many trading options and tools offered by eToro. It allows you to benefit from the wisdom and experience of thousands of investors, and you have numerous tools to make an informed decision. Nonetheless, remember that when you copy someone, be smart about it, find the person that best fits your investment goals.
Even if you choose not to copy an investor, just by looking at other people’s profiles with a profitable track record you become smarter. You see the companies they invest in, their strategy, their posts and you become a more informed investor.
Disclaimer: Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
