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Amazon to Acquire Online Retailer BuyVip

Eyk Henning — Mon, 04 Oct 2010 21:50:16 +0000

Amazon.com Inc. has reached an agreement to buy the Spanish internet retailer BuyVip for around €70 million ($96.5 million), a person close to the matter said Monday, as the company seeks to break into premium online retail.

The deal will be announced this week, the person added. BuyVip offers overstock items from brands like Dolce & Gabbana, Louis Vuitton or Levi’s for steep discounts. The company doesn’t buy the stock itself but acts as a broker between fashion brands and consumers using its marketing and online-distribution channels. “BuyVip has huge growth potential. After sales of €60 million in 2009 the company now expects sales of over €130 million,” the person close to the sale process said.

BuyVip is owned mainly by a consortium of private-equity companies including Cipio Partners, Kennet Partners, Spanish fund Debaeque and the venture-capital arm of German media conglomerate Bertelsmann AG. Amazon ( (AMZN)) wasn’t immediately available for comment.

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A Service to Make 401(k) Tweaking a Piece of Cake

Walter S. Mossberg — Thu, 20 Aug 2009 01:09:04 +0000

In the current economic turmoil, with investment portfolios melting in value, it’s become harder than ever to plan for retirement. Many people lack good investment advisers, or the time and skill to do their own investment research.

So, a small San Francisco company, Cake Financial, is introducing Thursday a $99-a-year automated service that attempts to tailor a mutual-fund portfolio that will get you to retirement according to your goals. It’s designed to be simple, clear and relatively quick, using plain English, easy-to-understand graphics, and a step-by-step approach that walks you through the process. In essence, it’s a robotic, low-cost investment adviser.

[ See post to watch video ]

The service, called Cake Premium, automatically imports your investment and 401(k) account information from any of 65 major investment companies, analyzes and categorizes your holdings, and then proposes how best to reallocate your positions. It uses its own proprietary formula to rate funds, both on their performance and on their fees, and suggests substitutes that it believes would be better.

This new Premium service evolved from two earlier Cake products, a free investment-tracking service and a $30-a-year service comparing mutual funds. Both products emphasized social networking among active investors. But the new Premium version goes much further in terms of recommendations, is aimed at average folks and doesn’t focus on the social networking. Like the others, it’s Web-based and runs in all the major browsers.

Cake (cakefinancial.com) isn’t a registered adviser or broker, and doesn’t actually conduct any transactions. So, if you choose to follow its advice, you’ll have to buy or sell the necessary funds elsewhere. The company says it doesn’t receive commissions or fees, and has no financial ties to any mutual-fund company, bank or broker. It says its income from Cake Premium comes solely from consumer subscription fees.

I’ve been testing Cake Premium, using a dummy portfolio provided by the company. Because I am not an investment expert, I can’t evaluate the merit of Cake’s recommendations. You may want to ask a trusted adviser about that after test-driving it via Cake’s 30-day free trial. But I can say that I found the service clear and easy to use, and can see how it could be helpful to average people with limited time and knowledge. However, I also found that Cake Premium has some significant limitations.

Here’s how it works. After you enter a few basic facts, like age and desired retirement date, you tell the service your login information for your retirement account, such as a 401(k). But it won’t work if your account isn’t at a major investment firm like Fidelity or Schwab (SCHW). And you can’t manually enter your data from an account that isn’t covered. The company assures users this is all done very securely.

Next, Cake Premium will assess the mix of mutual funds you hold, and decide if that mix matches your goal. It rates each fund, categorizes them by type, and then labels your current strategy by degree of risk. For example, it might tell you that your current holdings are “moderately aggressive” or “conservative.” It might also tell you “you are paying way too much in fees.” All of this is displayed in very clear text and graphs.

Then, it makes an overall judgment. In my case, Cake Premium declared that the investments in my test account weren’t properly diversified and represented the wrong level of risk for my situation.

Finally, the service will suggest a new allocation of funds, propose you substitute some funds with others it considers better, and present you with a detailed listing of which ones to sell and which to buy—naming specific funds. You can, at any time, alter Cake Premium’s proposals to see how your chances of meeting your goals will change, and you can do the same by adjusting a few factors like when you might retire and what percentage of current income you’d need.

But what about those limitations? For one thing, the service is focused only on mutual funds, and can’t give you advice about CDs or money-market funds. Also, it is all about retirement, not other goals, like saving for college.

And unlike a good investment adviser, Cake Premium learns only a portion of your financial picture, so its mutual-fund recommendations aren’t made in a complete context. For instance, it includes only a single small box into which you can type a total of your other assets. The company says it plans a more detailed information-entry process in future versions.

Finally, a maddening problem: If you are trying to reallocate the mutual funds in a 401(k) plan, Cake Premium isn’t smart enough to limit itself to suggesting substitutes that are actually available in your plan. It may in fact suggest only alternative funds that your plan doesn’t offer. The company suggests you purchase such funds for a separate account, like an individual retirement account.

Overall, Cake Premium may be a helpful tool in confusing times. But its limitations make it an incomplete solution that’s no threat to a really good, honest investment adviser.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

A Go-To Web Site for Home Buyers

Katherine Boehret — Wed, 18 Feb 2009 01:20:03 +0000

Dipping a toe into the real-estate market these days can feel a lot like taking your car to the mechanic: If you don’t know what you’re doing and don’t trust the professional you hired, you may feel like someone is taking advantage of you. Thankfully, the Web’s ability to demystify intimidating topics has brought what was once considered insider real-estate knowledge to the masses.

This week, I tested Trulia.com, a real-estate site that’s geared toward helping people who are ready to buy. Trulia combines a simple approach to real estate that anyone can grasp, with enough market stats to excite number-crunching types. It also offers a community where regular users can ask 200,000 real-estate professionals questions without fear of being hounded by agents because their emails are hidden.

An iPhone app from Trulia.com uses GPS to find nearby open houses.

Trulia has been around since 2005, but started out as a site that only posted local real-estate listings in California and New York. After expanding to the national market in 2006, it added other features like pricing heat maps (color-coded to indicate prices in an area), comparable listings, an online community and automatically generated newsfeeds about specific properties and areas. Last summer, Trulia went mobile with a free iPhone app that uses GPS to find nearby open houses.

Starting Wednesday, Trulia will offer CompareIt, a tool that lets users choose five properties for sale to directly compare with one another. Before now, Trulia just generated a list of comparable properties that sold or are for sale at the bottom of a listing.

I only used Trulia for a week, and I’m not a typical buyer since I was just looking — for now. But I got a lot out of the site, especially by browsing maps of neighborhoods that I know well (I’m picky about my preferred location) and asking questions of the Trulia community. Its iPhone app listed nearby open houses according to my search criteria and also worked on my iPod touch as long as I was in a Wi-Fi zone.

Another big plus to Trulia is Newsfeed, a list that shows up on the home page with content that’s automatically generated and personalized according to your past search locations. It is updated every day and spits out stats like the number of price reductions, open houses and new listings in an area. It shows an area’s average listing price, median sales price, number of foreclosures and average price per square foot, among other things. These data are a boon for people who don’t have the time or inclination to look this stuff up, and it aggregates the data into one intelligible, quick snapshot.

I found some flaws in Trulia, like the way it accidentally listed a property that was sold five months earlier. Trulia said it relies on partners for accurate listings, and those partners get their data from Multiple Listing Services or local brokers and agents, therefore Trulia’s data are only as good as its partners’. (At least one other real-estate site also accidentally listed the already-sold condo for sale.) Another problem occurred when I tried to use the CompareIt chart on Washington, D.C., properties; Trulia said the tool doesn’t work for D.C. due to a bug that it hopes to fix. Finally, properties saved on the iPhone app won’t transfer to your Trulia Web site account. The company says it hopes to fix the iPhone issue.

Trulia’s CompareIt lets users compare five properties with one another.

One of Trulia’s competitors is Zillow.com, which displays its own price estimates for all houses in the U.S. (for sale or not) to give people an idea of the real-estate value in an area. The two sites are similar in some ways: Both show heat maps, display data about nearby schools, have mortgage calculators and use online communities to answer questions. But Zillow doesn’t offer a stat-packed Newsfeed or an iPhone app like Trulia.

After browsing through Trulia, I found a variety of properties that suited my target price range and location preferences. One place had lots of big windows and a renovated kitchen, according to the photos and information listed on its detailed Trulia Web page. A shortcut on the page made it easy for me to share this place with three friends to see what they thought. I even posed a question to the Trulia community about the property: Does this unit have a private entrance, or does it share an entrance with the five other units in the building?

Ironically, this was the property that was already sold, as I found out when a real-estate agent responded to my question. It took him just 15 minutes (Trulia says this is within five minutes of the average response time) to post a response saying that he was familiar with the listing and that the place sold five months earlier. Trulia has since updated this property’s status.

Other questions that I asked of the community were answered within 20 minutes. In one instance, I asked a general question about the best time of year to buy in Washington, D.C., and three real-estate agents responded almost immediately; two were from my area and offered their advice — and their services — but one from Florida chimed in simply to offer some encouragement. Each responder was clearly identified with a name, classification (i.e. real-estate pro) and photo. Within a couple hours, four more people responded.

These questions and answers are shared with everyone on Trulia, and I clicked on a thumbs-up icon to vote for the answer I found most helpful.

Email alerts can be set up through Trulia so you’re notified if a property you like dips below a certain price, or if there are new blog posts about certain categories like financing, crime or environmentally friendly properties.

The CompareIt tool worked to see how properties (excluding those in D.C.) stacked up against one another, up to five at a time. These charts arm people with more statistics and (likely) more negotiating power.

The real-estate world can be intimidating, now more than ever. Though sites like Trulia won’t solve this problem completely, they could make the weighty decision of buying a house a little bit easier.

Edited By Walter S. Mossberg

Email us at mossbergsolution@wsj.com. Find this and other columns and videos online free at the All Things Digital Web site: http://walt.allthingsd.com