Tuesday, October 2, 2012

What's wrong with various stock investment forums?

There are lots of stock investment forums on internet and their owners work very hard in operating and maintaining them. Most of them are investment professionals and have long stints in stock markets. Some of them have even turned activists, often taking business managements to their tasks. But something is missing with these stock investment forums.

Most of these investment forums try to give a basic investment education but that's very rudimentary in nature and doesn't serve purpose after a point of time. Often the visitors visiting such forums are laymen or amateur investors. Rather than turning out into well read investors, they turn into tip-seeking traders which they had always been. Most of the readers of such forums tend to follow the "master" and put their blind faith in him, which can be very catastrophic in markets. Though the "master" always state that their holdings aren't anybody's business, but still the clout of the "master" emanates from periodic declaration of his holdings.

What I mean to state here is that stock investment forums must tend to educate their readers or followers on various facets of investments, particularly aspects related to valuations. Assessing a business whether its good or bad is very easy. But whether to buy that business or not at a particular price, that's where the ingenuity of the forum owners will come into play. They must help the readers in reaching a conclusion. Yes, it'll be very cumbersome responding to huge amount of queries, but they'll benefit more in clout, followings, readership etc.

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