Kavout Review: An Innovative AI Investing Platform

We recently wrapped up another FinCon and the second annual FinTech Startup Competition.  The competition is the first ever early-stage business competition dedicated to technology products and solutions for the consumer-facing personal finance and investing verticals.  

KavoutThe competition was presented in partnership with SoFi, who chose this year’s winner, Kavout, to participate in their Entrepreneur Program. Today’s post reviews their service and the features that propelled them to first place in the competition.

Investing is important to your future happiness and peace of mind!

There is a big difference between working your entire life or building assets to work for you. There is an infinite number of tools out there to help you build your portfolio. From online brokerage accounts to fee-based advisors, the investing world is at your fingertips.

The question is where to start. With all of the resources available, you can educate yourself on managing your own money. Most people choose to take the backseat to their retirement and hire someone to do the heavy lifting for them. This can be a good choice if you can find someone you trust. After all, this is your future and retirement.

Considering taking control of your own investments and becoming your own investment advisor? The stock market can seem overwhelming and a challenge to comprehend. There are many different theories on predicting the market. One theory is to take emotion completely out of the equation and use data analysis only.

Kavout, a Seattle-based, FinTech startup is creating just that. An Artificial Intelligence-driven investment platform designed for investors at any level to efficiently create portfolios determined by data. The tool takes emotion out of the equation and uses data analysis in order to predict the best outcome.

Kavout Review - An Innovative Investing Platform

Concept

The core of Kavout is “Kai”. Kai is an Artificial-Intelligence machine that examines millions of data points while analyzing filings and stock quotes. It takes into consideration news, blog, and social media to give you the most accurate value at any point in time. This allows you to have a clear and immediate idea of each stock and its potential. See more on Kai below.

Market News

Staying up to date is extremely important when managing your own investments. Having stock information and the latest news in one place can be very helpful. Kavout compiles all the latest media surrounding a company as well as headlines in that company’s sector. This allows you to see the big picture of what is happening in certain industries.

Gamification

Gamification has recently become a buzz word. Companies are applying this concept to their applications as well as their business practices. People enjoy competition as well as being transported into a different reality.

Kavout adds gamification to the stock market. You can configure your own portfolio and see how it performs without acquiring any loss. Especially for new investors, this could be a great way to get your feet wet and dabble in the market without using your own money. The feature is built for experimentation and to explore your inner investor.

Navigating Kavout

The layout is easy for navigation purposes and for an experienced investor, it will be a breeze to find the information you are looking for. Everything is well designed and user – friendly.

However, if you are a little less experienced, you may need to do a little research before using this tool. If you don’t come from the “Finance” world, terms may be hard to understand. Kavout says they are for every user, which could be true. But for a beginner, you will want to educate yourself while navigating the site.

Key Features

Across the top of Kavout you will find 5 key features or menu items.  Here’s what you can expect with each:

Kavout Menu

1. Watchlist

If there are stocks you would like to keep your eye on, the Watchlist tab allows you to keep track of them. You can create different lists based on categories of your choice. You can view individual stock performance graphs as well as and other stock data in one place.

2. Screener

If you ever wanted to learn how Warren Buffett or Ben Graham pick their stocks, Kavout created a feature that can show you how. Based on each investing guru’s strategy, Kavout developed an easy to understand formula. These formulas have been compiled into philosophies that you can select and help you invest like a pro.

You are also given the option to customize your own investing style. You can personalize your own stock screening rules. The personal screening option gives you the ability to determine your own investing philosophy.

3. Markets Analysis

It is simple to find the top stock performers with the Markets tab. You can view top performers based on industry or sector. This tab also gives you a bird’s eye view of the market as a whole. The market analysis shows you most of the information you would need in order to make strategic investing decisions.

4. Kai Score

Based on stock attributes and future performance, the Kai Score lists stocks in an easy to understand numerical ranking. Again, Kai is the machine that drives the entire investing tool. The Kai Score is what separates this tool from similar Artificial-Intelligence machines.

5. Calendar

The calendar view allows you to see individual stock performance throughout the week. You can select the sector and market cap you would like to review.

Pros

  • The artificial intelligence machine cannot only take into account big data and find new patterns within but it can sort through all the buzz around the market. This is taking the emotion out of investing and focusing on the facts.
  • The layout is easy to follow and explore.
  • Information is easily accessible.
  • You can view the latest market data, news, and analysis.
  • Kavout eliminates the stress of investing and allows you to practice without using real money. Test your investing skills while educating yourself in the process.

Cons

  • Chart data may be overwhelming and challenging to focus on the important information
  • Beginners may find it challenging to understand and to simplify the information.
  • There are so many articles it is challenging to determine what may be important vs. what is irrelevant.
  • This is only a simulation and may not have the same outcome in the “real world”.
  • If you agree with Efficient Market Hypothesis – EMH this may not be the tool for you.

Kavout was created by a rock star team that has decades of experience. Their extensive knowledge of market and analytics has given them the experience to create a one of a kind tool. Depending on your theory of how markets work, this may be a great tool to try out. It will allow you to get your feet wet in the investing world and acquire some financial knowledge along the way.

If you are a “beginner” do your research and educate yourself before you dive right in. Having the basics will be helpful when using such an advanced tool.  Also, keep in mind there could be unknown factors that determine the value of stocks so you may not be able to fully depend on Kavout to get the outcomes you desire.

Overall, Kavout is a new and innovative solution you may want to consider to support your investing strategy.

Kavout

Kavout
8.5

Rating

9/10

    Pros

    • Sorts through all the buzz.
    • User friendly layout.
    • Eliminates the stress of investing.

    Cons

    • May find it difficult to sort through all the data.
    • Beginners may need to do some self education.
    • Could be challenging to focus on the information that is most important.
    Last Edited: November 3, 2016 @ 11:52 pmThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
    About Ashley Chorpenning

    Ashley Chorpenning is a Finance Blogger. She has a deep passion for helping millennials gain financial literacy and planning for their futures. Check her out at moneygravity.net!

    Comments

    1. All of this is AFTER maxing out 401k?

      • That’s certainly my philosophy, Mike. I maximize my retirement-focused, tax-advantaged options before doing anything else. Most folks should follow a similar pattern. Additionally, I like to take 10-15% of my investable assets and use them in a taxable account. That’s where a site like Kavout would fit into the mix for me.

    2. I like the idea of gamification – being able to test out your theories of investment to see if they really produce the results you expected. I also like that AI formulas for success can be shared and replicated without any hassle. Products like Kavout deserve to be tried by everybody serious about finance. I appreciate this review.