Does Your Favourite Tech Blogger Disclose What Companies They Own? (Should They?)

by Tony Hung on June 28, 2007

So, in contemplating the latest tech issues that are floating around the blogosphere, a thought came to me during my morning constitutional. Disclosure is a Big Thing amongst bloggers, and perhaps even so amongst bloggers with influence. Witness the hubaloo over the weekend where Federated Media’s attempts at “Conversational Marketing” (and rather old attempts at that — Valleywag needs to improve the quality of its bird-dogs, methinks) created a giant stink … and some of that had to do with disclosure.

And I think the issue of bias, truth, and disclosure is going to be one of those perennial topics that bloggers love to get riled over. Probably because there is a perception that blogging is somehow, or ought to be, more truthful, more honest, more sincere, and have more integrity than other publishing mediums. When a blogger says something or does something contrary to that, there’s a conflict in perception, and the bigger / more beloved / more hated the blogger, the bigger reaction.

But how about this angle on things.

I blog about technology, web startups, social media and all manner of things. I’d like to think that my opinion has a certain amount of currency amongst the people who read this site, or who subscribe to my feeds.

But do you ever wonder if I have a vested interest in blogging about what I do blog about? And, no, I’m not talking about advertising, like Federated Media.

Rather, have you ever wondered whether I actually hold a position in any publicly (or even, let’s say, privately owned) companies that I may have blogged about? Do you think that might affect what I write about? What I “cover”? What I don’t? What I write positively about? What I write negatively about?

It should. And, maybe it should get you to start thinking about what your other favourite bloggers own.

For example, would it shock you if I told you that I hold shares in AOL, which owns Netscape, a direct competitor to Digg, of whom I have criticized endlessly?

(I don’t, so don’t worry).

Disclosure on this kind of level, as far as I know, happens when its convenient for bloggers, or when its topical. For example, Mike Arrington has told us on loads of occasions that he is involved with the startup, DayLife. That is a clear potential bias for his coverage, but he tells you right off the bat.How about the ones he doesn’t tell you about? And, not to single out Mike, but what about your other favourite bloggers?

And let’s be really clear and “transparent” about this argument. How about the biggest players in the business who we all love to blog about? Who owns shares in Microsoft? Google? AOL?

How about Apple?

Could anyone who owns shares in Apple — and let’s crank up the hyperbole for a second, and say, “what if your IRA is counting on it?” [or, if you live in Canada, RRSP] — really and truthfully write an honest review about its chances pre and post iPhone? Isn’t it in their best interests … even on a subconscious level — to either not write about it, or generally agree with the reviews at large that its going to be the next biggest thing since Jeebus?

So, here’s where I come in.

“What does Tony own?” … you might ask.

Well, I’ll be completely honest. I *do* own shares of Apple. Not a lot. And I mean, *really* not a lot. But, that’s an investment that I made because I believe in Apple’s long term growth, and more importantly, the svengali powers of Steve Jobs.

My own take on the iPhone is that it doesn’t really matter what it *doesn’t* have. The magic was in the marketing that lead up to this point, and more importantly, everything it *does* have. And from a company point of view? Apple is going to keep up making more and more of these things. And by “Things” yes, I mean newer, better, versions of the iPhone — just like the iPod (and therefore, it really doesn’t matter what it doesn’t have). But also other things that people are going to fall in love with.

Steve Jobs — I swear, you better not have a heart attack any time in the next 10-15 years! ;)

But that’s it.

I don’t own shares in Microsoft, or Google or anything else. Maybe I should.

But in thinking about things, it really got me thinking.

“There is absolutely no way I can write anything honest about the iPhone. I mean *really* honest.” Because I’d love for it to do well. Gangbusters well. So Apple stores can increase their revenue per square foot even MORE (did you know that Apple stores have the highest revenue per square foot in all of retailing?) Part of me wants it to fail, because I love schaedenfreude much as the next man — heck, possibly more. But I can’t revel in it fully — or even be myself — because of what I own.

So there you go. Its out there. I own a few shares of Apple.

But, what do your favourite tech bloggers own? And do you think its going to bias their coverage of tech companies now — and in the future?

17 comments

I’ll disclose anytime I buy stock. So far I only own Microsoft and I’ll probably sell that soon to get rid of the conflict of interest.

by Robert Scoble on June 28, 2007 at 11:00 am. #

Thanks for disclosing that Robert,

Do you think that Bloggers ought to state what they own publicly? Even before its convenient for them to do so?

by Tony Hung on June 28, 2007 at 11:16 am. #

I’m guessing you meant to ping Andy, and not me, with the link to Marketing Pilgrim. But since you did ping me, I can tell you this: I own no stocks, have no relationships with any companies other than Marketing Pilgrim and have no relationships with Marketing Pilgrim’s clients. As for the story you trackbacked, I hate YouTube and MySpace almost equally.

by Jordan McCollum on June 28, 2007 at 11:18 am. #

I wish I had something to disclose (:.

Seriously though, I do have a couple of projects in the works, and I will definitely disclose if/when I write about them. Same goes for my advertisers; all ads are clearly marked with a large-font sign, and I will mention that they’re my advertisers if/when I write about them.

But, first and foremost, I will never write anything that’s not my honest opinion. That’s the purpose of blogging for me.

by Stan Schroeder on June 28, 2007 at 11:22 am. #

I picked up a Yahoo yo-yo at a conference one time, should I disclose that? ;-)

Thanks for giving your readers something to think about. As for Marketing Pilgrim, we publish full disclosure on anything that might influence our writing. http://www.marketingpilgrim.com/blog-disclosures/

by Andy Beal on June 28, 2007 at 11:25 am. #

Interesting question about whether a blogger has to disclose whether they own any stock they write about. For what’s it worth, I don’t own any tech stocks. As a reporter, it made it much easier to write objectively about any company – and this policy has stayed the same even after I’ve the world of newspaper journalism for the blogosphere.

by Mark Evans on June 28, 2007 at 11:36 am. #

Mark — that makes total sense. But it must make it hard from an investment point of view, especially since you’re so close to things.

by Tony Hung on June 28, 2007 at 11:57 am. #

Thanks for stopping by Andy,

I wonder if disclosure pages should be as best practices as a comment policy?

by Tony Hung on June 28, 2007 at 11:59 am. #

Stan,

I guess the issue is if there are connections that aren’t so visible, such as stock ownership. Its a bit of an honour policy, I suppose, but one I was thinking about.

by Tony Hung on June 28, 2007 at 12:01 pm. #

@Tony – I think each bloggers should consider what’s important for his own site. I don’t think we should regulate disclosures or comment policies, but I do think that bloggers who are successful will likely have both.

On that note, here’s our comment policy! ;-)

http://www.marketingpilgrim.com/comment-policy/

by Andy Beal on June 28, 2007 at 1:09 pm. #

there are probably a dozen bloggers out there whos words could potentially move a stock – for eg. if Robert posted a ‘microsoft to acquire yahoo’ post, it would probably move both stocks. most journalists, especially in financial reporting, disclose if they own any of the stocks that they wrote about in that very article, which I think is ok – but for some bloggers it might be more important to either a) not own any stock, or limit their involvement b) fully disclose in their about page

I think their is a limit to disclosure though, such as those that have criticized mike previously for writing about his ‘friends’ companies before others – which I think is just totally ridiculous.

by Nik Cubrilovic on June 28, 2007 at 1:09 pm. #

Here Tony,

Here is my pitiful portfolio (listed on my about page):

atari (under $100 in total value)
motorola (under $250 in total value)
revlon (under $300 in total value)
sirius (under $500 in total value)

and checking now, each of them are down 60% from when I bought. except mot, down 28%. For some reason I thought women liked Revlon :)

I currently have NO other financial interests and I can tell you this, no amount of money will ever sway my vote on a product or topic. I will always write reality.

I also don’t friend-pimp as some of the other tech bloggers do. I think this hurts the industry as a whole, it hurts the bloggers credibility, it hurts the friend, etc.

And Tony, thank you for including me in a list of your favorite tech bloggers. You just made my day!

by Allen Stern on June 28, 2007 at 1:14 pm. #

I’ve never got all hot and bothered about disclosure. It’s one of those “shrug” issues for me…

Some A-listers have serious influence, but it’s not all-powerful. Can they really affect the long-term value of a company with one blog post (positively or negatively)?

People need to keep in mind that bloggers are posting their opinions. Nothing more. It’s not Almighty (Note: I’m not a religious guy, just making a point.) And in many cases, a few days after a blog post is written it dies away. Same with blog hubbubs that circulate every so often.

I read all the blogs you mention, I value their opinions. But I don’t rush out to buy stock in a company or change my entire life (or even change much of anything!) because of what any of them write in a blog post…

PS. I own part of Standout Jobs. I talk about them frequently. *smile*

by Ben Yoskovitz on June 28, 2007 at 2:00 pm. #

There is a WordPress disclosure plug in by Andy Beard: http://disclosurepolicyplugin.com/

Makes it really easy to disclose – it just looks for certain words in the body of your post – to quote Ron Popeil: “set it and forget it”.

I figure disclosing what stock you have a no big deal. I specifically hold shares in Apple, Whole Foods, and GE. I blog about Apple incessantly on my site, so I figure disclosing is better than dealing with a direct accusation that I’m trying to juice upu the stock (which I’m not).

As if they need any help from one more lowly blogger…

by Webomatica on June 28, 2007 at 2:34 pm. #

[...] [yes, I do own shares of Apple] [...]

by Deep Jive Interests » Strangely Enough, Apple Fizzles With iPhone Release (the Stock, Anyway) on July 2, 2007 at 11:29 am. #

I also own Apple stock. And I write books about Apple products. And I blog about Apple (among other things).

But I’m also honest to myself. Although most of what I write about Apple is positive, I write it because I believe in what I’ve written. I’m not writing it just to create buzz about Apple that might influence its stock price. While it’s true that I’m virtually unknown in the blogging world, I’d do the same even if I were one of the A-list bloggers.

If I didn’t like Apple I wouldn’t write good things about it. I also wouldn’t own Apple stock.

But I do understand your point. How are we to know what some bloggers have at stake? I own 50 shares of Apple. If Apple went under tomorrow, it wouldn’t kill me. But suppose I were an A-lister who owned 50,000 shares of Apple. And I had the power to pump up the share price $2-3/share and sell. That would be tempting. Some A-listers probably do yield to the temptation.

by Maria on July 2, 2007 at 8:46 pm. #

Hi Maria,

Of course you write about Apple stock and own Apple products — you’re Maria *Langer*! :)

What I was getting at wasn’t so much pimping Apple to raise the stock and then dump it, so much as just influencing the overall tone and tenor of a post. Or even your opinions over time.

In the pursuit of blogging that is free of bias, it was something that I haven’t really seen “disclosed” amongst tech bloggers — even though publicly owned companies are things we blog about all the time.

Thanks for stopping by!
t @ dji

by Tony Hung on July 2, 2007 at 10:14 pm. #

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