You may have seen the MoneyVidya Core Blogger Badge on the left side of my blog. Many of you have asked what does it signify, and what are the benefits to me, is it an advertisement, and/or do I get paid for it. Many have asked, I discuss a lot about long term investing, but then participate on a speculative stock picking site. I had intentionally kept silent about it because I did not want to make any hypothetical argument. I did not want to be perceived as my agenda to promote something. As a matter fact, some time back I presented a very critical review of MoneyVidya.com website.

I now have something to discuss with my readers. Again the discussion is based on facts (and not on any assumptions or hypothetical scenarios). So I will be posting two articles (1) MoneyVidya stock picking site vis-à-vis long term investing; and (2) how it is beneficial to me.

MoneyVidya is a community-based stock picking site, which is generally perceived as speculative process. Many long term investors, like me, believe that it is not for them and they do not entertain the stock picking process.

It is very natural that at first glance, any long term investor will consider it as a stock picking site. However, I look at moneyvidya site as competitive ranking mechanism. Any long term investor can select their stocks (buy or sell) using a 2 year time frame. Now isn’t that long term investing? I am also sure that moneyvidya management is perhaps looking into how to include more options for long term investing.

The image below shows my relative ranking in the stock picking community. Making stock picks from a long term perspective allows me to be in top 10% of the folks on the site. This to me means 90% of the stock pickers still cannot beat a long term investing strategy. I am not claiming success. I am demonstrating ability to rate yourself among the peers.

Some may argue there are other stock pickers in top 10%. I agree. But I believe the ranking of long term strategy will improve if we incorporate implication of transaction cost and short term capital gains tax on all those picks. Users making 10s, 50s, and 100s of stock picks are bound to increase their taxation. Which I believe is not captured, and I am sure MoneyVidya management is aware of it.

The point I am trying to make here is it is a competitive ranking mechanism. It helps me demonstrate the authenticity of my investing strategy. It is an independent source who is rating me. As I mentioned in one of my earlier post, if not all, then majority of the tipsters will run away from such an independent rating concept. They will give you hundreds of excuses for not participating. My respect goes to only those folks who can honestly demostrate by actions and not by words.

I consider MoneyVidya site as a competitive benchmark for my investing strategy. Being a long term investor, I can compete with tipsters and folks who are making daily calls. I can demonstrate that long term investing works. I am not the one to shy away for competition. I like to take personal responsibility. I like to demonstrate by facts. If I make mistake I will accept it and adapt accordingly.

In the next post tomorrow, I will discuss how it is beneficial to me.

moneyvidya