Ensuring Transparency-Accountability-Credibility


(Administrator) #1

Following is excerpted out of the earlier discussion - Ensuring a participative balanced discussion. ValuePickr Admin was entrusted with ensuring Transparency and Accountability - for building up higher Credibility for the Community.

It’s a good idea to go through again and re-inforce the considered confidence-building views summarised earlier in this post.

2). A closer examination of the research data and posts made - shows an emphasis on huge amounts of data, and news/events around the company or industry, butnegligible emphasis on Valuation. End of the day thePrice you get in, is themost important. If you get the Price entry wrong, all your in-depth research is practically useless. On the other hand if you get the entry price right, you do not need much in-depth data. Getting the big picture right is enough!

3). Once the basic data set is in - like say our impartial/neutral Stock Story is in - most of the discussion should be aroundValuation. If there is Value, it should scream a Value buy out at us. The danger with too much emphasis on data and news & events is that it**drowns the focus on Undervaluation.**While senior investors can come to their own conclusions, 90% of any online community as ours cannot. Most of them look to be free-riders on folks they get to trust. If they get in at the wrong price, and do not get warnings for exit, they flirt with disaster - and in ValuePickr itself there has been atleast 3 instances of disaster!!

4). ValuePickr is a small forum with ~3000 registered users today in last 2 years. The pace has accelerated as new folks are joining the effort -and our dream of bringing together amateur investors, senior investors, industry professionals, Institutional Investors - in a collaborative model is taking firm roots. We have also had some decent success, we have some measure of accountability and transparency built-in, there is some TRUST. Beginner Investors have started flocking to the site. From the stats, you can make out that 90-95% are free-riders.Official ValuePickr Portfoliowas started to bring in the first level of transparency and accountability.

5). We have NOW been advised to bring inhigherstandards ofTransparency&Accountabilitywhich will lead to higherCredibilitynot only of ValuePickr as a community, but lead to higher credibility of its mostprolific contributors. Separating the Wheat from the Chaff- should apply to companies/stocks, but just as well to our prolific contributors.

6). Higher Transparency - Ensure Disclosure of positions while initiating, on regular updates and definitely on exits, or atleast immediately after. Moderators are responsible for compliance by following up with prolific contributors.

7). Higher Accountability - Track record of prolific recommenders must be kept updated. Initiation price, price behaviour within 3 months, 6 months, 1 yr, 2yr, exit calls, price behaviour post exit calls.

8). Our friends from the Regulatory side say these measures will go a long way in ensuring that the downsides to small investors are minimal, and enhance the reputation of our community if we can start with strictly enforcing these measures.

9). They have also advised us to HELP the Regulators - by putting up profiles of participants, everyone’s photo is uploaded, introductory thread started, and one-on-one face to face group meetings are encouraged.

Many of these we have implemented. Some we are yet to enforce. We are attempting to build on the progress made so far. As a first step, we listprolific participants who we need to bring in within the CIRCLE of TRUST!

This will help Admin keep track and PUSH Team ValuePickr in enhancing its credibility in the investment community.


(Administrator) #2

RsKm - confirmed by Member as being based in Mumbai. Prolific participation in Caplin Point thread. Has volunteered to meet Donald or anyone from Team ValuePickr on their next Mumbai visit.

Ruan - confirmed by Member as being based in Chennai. Prolific participation in Caplin Point thread. Has NOT yet volunteered to meet Donald or anyone from Team ValuePickr.

Mahesh Shah - confirmed by member as being based in Mumbai. Prolific participation currently in PI Industries and Dhanuka Agritech thread. Had volunteered to meet Donald or anyone from Team ValuePickr on their Mumbai visit(s). Somehow meetings have not happened. Donald is entrusted to close this loop.


(Rahul Chauhan) #3

Donald/Admin, I appreciate what you are doing here. I can understand transparency but my question is on your mentioning accountability every time. How can I or any one for that matter hold you or any senior valuepickr accountable? This is not a subscription service (unless it is headed that way) where we have paid. If any contributor or the valuepickr team falters, you can just say sorry and move on (and rightly so). Where is this accountability issue coming from?


(Administrator) #4

Rahul,

You are probably a recent member. Please go through old threads like Relaxo, and you will see the genesis of the transparency-accountability-credibility plank is from potential misuse/abuse of ValuePickr forum )- which now has a bigger responsibility - with much increased readership.

You will see that this is not something that is a Admin diktat - but something that has evolved out of discussions within the community and inputs from seniors, market participants and well-wishers from the Regulatory side.

Accountability - is taking responsibility for your public actions. This is applicable mainly for prolific contributors and senior ValuePickrs. Be accountable to the community - ensure that as a prolific contributor - you have followed proper disclosure norms about your own entry/exits. Ensure that your contributions have a balanced feel and is not heavily one-sided which can easily mislead newbies and learners. Ensure that your contributions focus more on the most important things - and not ignore Valuations. Ensure that you build TRUST (the aspect that is lacking the most in Indian markets) for yourself and the Community!

Over time, you as a prolific contributor to the community will have built your own reputation. As pointed out earlier our job is not to make everyone top-notch analysts. But our job (as Admin) is certainly to point folks to top-notch Content & top-notch Contributors, those who play by the Community guidelines and are seen to be transparent and accountable. They will have the Reputation/Credibility to be followed widely by the Community.

Those who do not follow the Community guidelines will also be diluting their Reputation/Credibility, significantly.


(Hemant V Bhatia) #5

Admin,

I agree with you about,bigger responsibility(albeit morally ),but then with so much data provided here by you all,about what not to do,if any one blindly follow others,as you had stated that most of people look to be free riders,then one has to pay learning charges.Money making can’t be time pass,but if one invests blindly & then blame others,then why should you listen to them ?


(Administrator) #6

Hemant,

You are probably missing the operative word “Misuse/Abuse”. It’s not enough to have standard disclaimers and then let everyone/anyone have a free run.

You will agree there is a certain helping-nurturing-collaborative culture that ValuePickr now is known for. There is very little trash that goes around. And when it does there are 5 guys from the community who point that out and help nip such things in the bud. This culture of self-moderation and free collaboartion hasn’t happened on its own!

It has been carefully nurtured to where it is today, small steps at a time.

We have been advised the next step for the Forum is to weed out all instances of suspected misuse/abuse of the platform - now that ValuePickr has a decent following - we have to be more vigilant.

Pump and dump operations are the order of the day in our markets - by individuals and by organised folks - there are more sophisticated mechanisms in the digital world than we normally are aware of or can see through!This extra vigilance on any prolific contributor to ValuePickr Forums is necessary- It’s a small price to pay for the genuine guys!

We believe this will go a long way in enhancing the platforms reputation and credibility - and therefore ValuePickr’s usefulness to the larger investment community.

Let’s all set high standards and not shy away from living upto them. Even if that means a few tough measures from time to time.


(Hemant V Bhatia) #7

Admin,

I fully support your action towards preventing any Abuse/Misuse of forum & you will be justified for taking tough measures from time to time against same.Sometimes it becomes thank less work for you.Seems i could not put my thoughts in proper way,may be because i over look certain valid points you have stated.Hats off to you all for such wonderful forum.


(Rajeev Jawahar) #8

Hi Administrator,

A suggestion - Can we not charge a token amount from all members n insist that payment be made from the members personal bank account. This way the bonafides of each member could be established. All members have benefited enormously, so logically no member should have any objections. Just hope this is not a touchy subject!

Rajeev


(Administrator) #9

No need for too many complications and/or administrative overheads.

The simple old-fashioned way of face-to-face interactions with a couple of senior investors should be enough to place any new prolific members.

We welcome more of them, at the same time we should be willing to walk that extra mile and establish personal and community TRUST in the prolific contributors.


(Manish Vachhani) #10

The transparent & accountable culture is the backbone of Valuepickr and the credit goes to the seniors for taking this path. It is our duty to follow this culture to ensure the safety of the fellow investors.


(Vivek Gautam) #11

Well said Vachhani ji.


(Manish Vachhani) #12

Vivek, please drop ji as neither I prefer nor deserve that respect from the fellow investor.

**
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(Administrator) #13

Updated List for follow-up:

RsKm - confirmed by Member as being based in Mumbai. Prolific participation in Caplin Point thread. Has volunteered to meet Donald or anyone from Team ValuePickr on their next Mumbai visit.

Ruan - confirmed by Member as being based in Chennai. Prolific participation in Caplin Point thread. Has NOT yet volunteered to meet Donald or anyone from Team ValuePickr.

Mahesh Shah - confirmed by member as being based in Mumbai. Prolific participation currently in PI Industries and Dhanuka Agritech thread. Had volunteered to meet Donald or anyone from Team ValuePickr on their Mumbai visit(s). Somehow meetings have not happened. Donald is entrusted to close this loop.

Hemanth CA - new member from Mysore. Excessive emphasis on “multibaggers” - complaints received on posts over-hyping unproven companies peddling them as multibaggers while skipping or under-representing downside risks. Initial contact initiated.


(Rahul Chauhan) #14

Admin,

To continue from Banco Products thread and to stop the abuse in future (one such just happened in Trigyn Technologies) I have suggested that Valuepickr ask for log in each time someone wants to view anything here. This is not going to totally prevent pump and dump, but at least you’ll know exactly how many are lurking around each day. Those that have not registered and are regulars will come in the registration fold.

Right now it seems some market operators have been looking here. What may happen is novices and new members might take this seriously and start building position as soon as a company is spoken of. The game will be good for a while but in the end many will loose. What will also be lost is the credibility of this site.

Just to give you an example. I am a subscriber to a paid site named Prudentequity.com. They have very high quality research and returns as well. I am informed that they refuse to share their reports free even on very prominent sites and have rejected such offers even at the cost of getting less subscriptions. While Valuepickr in not paid, but I regard valuepickr no less in credibility. Rather I would go to an extent to say that this is the best investing site inspite of being free.

My personal interactions with some friends tell me that people are using this as tips site now mainly because of the so good track record of valuepickr. I would urge seniors to be more careful unless the objective is to publicise the stock in the first place. I am sure that is not the intent of anyone here.

I joined this site mainly because the quality of discussion is excellent. We all come from different places and backgrounds and add our small or big inputs here. In the end a story is formed that we all track and feel confident about. But if this site becomes a site where you just speak of a name and it pops up (I can give many examples that has just happened at valuepickr), then when the bad times come, we will all suffer.

I have a disclosure to make. I own several stocks discussed here and have benefited from this site and don’t want valuepickr to change want it stands for i.e. Quality.

Please consider my suggestion on compulsory log in.


(Manish Vachhani) #15

For starting a new thread on a company, please make sure to disclose your holding in the stock. If there is no disclosure of holding, the thread is liable to be deleted.