Roger Friedman, the head of the blogging network at The Motley Fool, sent out the following e-mail to its bloggers on Friday:
Browsing our not-so-greatest hits, we noticed that a large majority of our errors come in posts that discuss biotech and pharmaceutical companies. It turns out that it’s not so easy to understand the science, the medicine, the business, the government interactions, and the investing component. Additionally, especially with smaller companies that might only have a couple drugs in the pipeline for whom success hinges on a binary event (yes, it’s approved, or no, it’s not), it’s even more critical than usual that we get our posts right.
Therefore, we’re requesting that you hold off writing about these companies unless you have a background or experience in the field. We encourage everyone to operate — as bloggers and as investors — within their circles of competence. We generally prefer not to tell you what you can and can’t write about, but we can’t leave ourselves open to such a large opportunity for error.
And now, a note from blog reviewer Mike Finarelli:
Given our passion for in-depth stock research at the Fool, we would love to see our bloggers develop and convey an understanding of company fundamentals in much the same way. So, we’re challenging all of you to improve upon your already high-quality research and writing. We believe we have seen very insightful commentary thus far, but we think you can do even better!
In general, we would like to see everyone dive deeper into fundamental, business-oriented analysis. For instance, what really gets us excited is the in-depth discussions on competitive strengths and sustainable advantages. Anyone can report various financial metrics, but not everyone can break down an industry’s competitive landscape, or dissect significant changes in financial statements. These latter items are much more valuable to your readers, not to mention they are the source of content that will help you to continually earn the coveted Editor’s Choice designation.
Initially, this may seem like a daunting way to approach each article, but rest assured the rewards will come through greater viewership, positive feedback, and personal branding within the Blog Network. In addition, your expanded effort can result in higher pay or even the prospect of an exclusive writing contract with Fool.com!
