Method and apparatus for choosing a stock portfolio, based on patent indicators

Patent 6175824 Issued on January 16, 2001. Estimated Expiration Date:

July 14, 2019. Estimated Expiration Date is calculated based on simple USPTO term provisions. It does not account for terminal disclaimers, term adjustments, failure to pay maintenance fees, or other factors which might affect the term of a patent.

Abstract Claims Description Full Text

Patent References

Predictive neural network means and method for selecting a portfolio of securities wherein each network has been trained using data relating to a corresponding security
Patent #: 5761442
Issued on: 06/02/1998
Inventor: Barr, et al.

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Issued on: 03/07/2000
Inventor: Fried

Inventors

Application

No. 353613 filed on 07/14/1999

US Classes:

705/10, Market analysis, demand forecasting or surveying705/35, Finance (e.g., banking, investment or credit)705/37Trading, matching, or bidding

Examiners

Primary: Swann, Tod R.
Assistant: Patel, Jagdish

Attorney, Agent or Firm

Akin, Gump, Strauss, Hauer & Feld, L.L.P.

International Class

G06F 017/60

Abstract

A portfolio selector technique is described for selecting publicly traded companies to include in a stock market portfolio. The technique is based on a technology score derived from the patent indicators of a set of technology companies with significant patent portfolios. Typical patent indicators may include citation indicators that measure the impact of patented technology on later technology, Technology Cycle Time that measures the speed of innovation of companies, and science linkage that measures leading edge tendencies of companies. Patent indicators measure the effect of quality technology on the company's future performance. The selector technique creates a scoring equation that weights each indicator such that the companies can be scored and ranked based on a combination of patent indicators. The score is then used to select the top ranked companies for inclusion in a stock portfolio. After a fixed period of time, as new patents are issued, the scores are recomputed such that the companies can be re-ranked and the portfolio adjusted to include new companies with higher scores and to eliminate companies in the current portfolio which have dropped in score. A portfolio of the top 10-25 companies using this method and a relatively simple scoring equation has been shown to greatly exceed the S&P 500 and other indexes in price gain over a ten year period.

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