Some investment pros believe in the “scuttlebutt” method as Philip Fisher described it in Common Stocks and Uncommon Profits. Giraffe Capital’s Avner Mandelman is one such pro. In his Globe and Mail columns, he describes how he gets information on companies through informal channels -- like visiting pubs where company employees hang out.
But anyone surfing the blogosphere can now collect quality scuttlebutt with less time and effort. For example, one can get an insider’s view of the Web 2.0 industry at Paradigm Shift, the blog of Markus Frind (his Plentyoffish.com dating site generates about $300,000/month in Google AdSense revenues).
When Frind says MySpace.com is “killing” online-dating companies, you probably would want to avoid shares in online-dating plays like Spark Networks (NYSEMKT:LOV).
Then there is the commentary on the weaknesses and strengths of Web 2.0 players like Digg.com, and their impact on Web 1.0 players like Yahoo (YHOO).