Posted on April 1, 2022 by Scott Shuda
Welcome to the first edition of Breakout Ideas, a macro post/newsletter created to shine a spotlight on some of the quality content being generated on the Breakout Investor Platform (BIP).
I know these things are easier to read if they are entertaining, so please note that we are purposely launching on April Fools Day (to be clear, the idea is that we are the fools, not you).
Breakout Investors and BIP were created in response to two things. First, recognition of a paradigm shift elevating the retail investor’s participation in equity markets. A major catalyst was the Covid lockdowns, which (1) resulted in lumps of cash being dropped into the bank accounts of millions of people that would eventually tire of playing Fortnite, and (2) temporarily denied sports, travel, and nights out, creating a massive wave of internet-savvy people discovering online trading as a new form of entertainment.
So, of course, these folks went online looking for ideas on which stocks to buy, and…..that’s where GameStop and the advent of “meme stocks” came from.
I’ve long been a huge fan of the idea that investors should use the internet and chat rooms to share ideas and research on stocks. I believe in the “Wisdom of Crowds” and that anyone’s idea is improved by stress-testing it in front of an audience of diverse experts and critics. I’ve tried many different platforms, and appreciate that there are now more social media-style stock chat platforms than there are stocks in the market. To each his own, some love the energy and excitement of Wall Street Bets, and others simply repurposed Discord, shifting from collaborating with friends to defend against alien invasions to evaluating public company business plans.
The second major driver to the creation of Breakout Investors and BIP was introduction to a truly amazing community of collaborators trying to organize around a collection of WhatsApp rooms. While that platform is fantastic for in-the-moment communications, it’s a pretty challenging place to achieve any focus around stock research—this because even the best post can quickly disappear into a thread dominated by two people burning an hour arguing over some piece of minutia. BIP was custom-designed to solve for this, and enable collaborative research. Active posts bubble to the top in the “Research” tab while chat is supported separately in the “Discuss” tab.
BIP is approaching 1,000 user accounts, and supports a growing global community that is thriving as we research, discuss ante rate dozen of small and micro cap companies with catalysts. BIP is organized around a core group of “Breakout Investors” that generate a majority of the content and act as thought leaders identifying potential investments and driving research.
In the next post, we will start looking into some of the best content on the platform. In the meantime, please check out the links below. AND ALWAYS FEEL FREE TO COMMENT ON THIS POST.
Must Click Links
First thing, every week day morning, Breakout Investor, Chris Forte, shares his thoughts to start the day.
Have you heard of FAANG 2.0 yet – better get on that
Smith Micro (SMSI) is the most followed name in the community – they just made a major announcement
Join us on the Breakout Investor Platform (BIP) to discuss SMSI and other companies where our community shares research and analysis. We seek to be Ahead of the Curve in identifying and owning great companies with catalysts that could make them the next Breakout Investment. Membership and most of the content on BIP is free.