Commonstock's Unique Opportunity
This week we've seen one of the most incredible short squeezes in history as Wall Street Bets has bid up shares of Gamestop to $347 (it was $20 a mere fifteen days ago), bringing hedge fund Melvin Capital to its knees, which needed a $2.75 billion bailout on Monday.

We are seeing an inflection point in a shift of power away from institutions and towards networks.

Wall Street Bets is a force to be reckoned with, but they are disorganized and disinterested in investing in companies for the long term. They have neither the interest nor the attention span to keep stocks like Gamestop at its current levels for an extended period of time.

(Not an argument for a short, please don't read it like that. Just making the point that a year from now, you won't see Wall Street Bets continuing to focus their energy simply on keeping Gamestop's share price up)

Commonstock has the potential at wielding a similar network power while being much more analytical, focused, and sustainable.

Post media

Right now you can see the raw power of networks all around the internet. There is a surge of interest in financial topics arising in a plethora of platforms where you will find an abundance of the same conversation happening over and over again, where one disembodied name says to another disembodied name:

"I hear XYZ is supposed to go up tomorrow, what do you all think?"

...without any effort to understand why the stock may go up or down.

Here on Commonstock you have a reputation that sticks with you, and you are incentivized to be both more thoughtful and helpful to others.

Since your returns are tracked over time, what matters here is the sustainability of your strategies, not the shock value of your boldness.

Commonstock has chosen to channel the energy of the community in a very different direction than Wall Street Bets.

We're starting to see niche group chats take off on Commonstock. Group channels on topics such as 'Artificial Intelligence', 'Semiconductors', and 'Valuation' are becoming spaces where people dive deep into the weeds and attempt to suss out investing implications.

(The Valuation group held a hour and a half meet-up on Zoom where @chasinggreatness taught us how to build financial models in Excel last week)

These small chats benefit the whole Commonstock network as people distill their learnings down to nuggets of gold in memos and explain them in an approachable way. (And are available for further follow up questions in the comments and direct messages!)

Instead of mob rule, Commonstock thrives because the purpose is for each node (individual investor) to educate and learn from the other investors. We succeed not by directing a swarm to pump and dump, but developing each individual community member to make better informed decisions, for the long haul.

And we've got an edge.

@tyler made a great point: "Research something that you have more fun thinking about than other investors. That gives you a natural advantage and removes the drudgery of having to keep up to date."

We will have more people, interested in more things than even the largest institution will be able to employ analysts for.

And we have different values and different goals than other networks.

So embrace that weird thing you want to learn more about. You don't have to be an expert to write a memo. In fact, you will probably explain things in a more approachable way than the experts if you publish your notes as you go down the learning rabbit-hole.

We have the makings of a really interesting ecosystem here.

If you had to bet on where the next amazing investment idea would surface, would you bet on a hedge fund? Would you bet on Wall Street Bets?

My money is on Commonstock.

I'm really looking forward to building this community with you all.
Josh Worden's avatar
People always talk about how social media has allowed people to be anonymous and therefore do things they wouldn't do face to face. This may be a fascinating output of what that looks like in the financial sector- and how Commonstock is on the more transparent end of the spectrum compared to Reddit
Nathan Worden's avatar
Yeah there are so many differences in community culture, and that has enormous implications. The prevalence of username pseudonyms on Reddit vs. real people on Commonstock is an interesting contrast.
Joyanta's avatar
We are seeing an inflection point in a shift of power away from institutions and towards networks. -- nice
Joyanta's avatar
how does one join these groups 'The Valuation' or is ti you need to be invited?
Nathan Worden's avatar
Yes, they are invite-only, but I can invite you Joyanta! Check your alerts up at the top :)
Nathan Worden's avatar
Actually I think I'm having trouble because you have a private account. You're not showing up when I search you on the invite screen :(
Joyanta's avatar
i have made myself visible
Nathan Worden's avatar
Awesome, just sent you the invite to the 'Valuation' group! Let me know if you're interested in any others.
Arjun Banerjee's avatar
Activate think tank mode
Nathan Worden's avatar
All the pieces are there! That’s where I think all this is going.
Ambrose's avatar
I think the reputation system could be worked on better. Specially, some of the gains over time are not tracked properly. This caused some people's performance to be inflated or deflated.

But definitely, I believe in this system where information is all free compared to paid discord services (some also have no proof of their own returns). Not all people can afford that, you know
Nathan Worden's avatar
100%, there are some wrinkles that need to be ironed out. Whenever you have an example where something is messed up and shouldn’t be, send screen shots to the @commonstock team.
Ambrose's avatar
I did. Give them some time to iron things out. I mean they are doing a good job so far, don't stress them out.
Nathan Worden's avatar
haha yep, totally agree, they have been working their butts off keeping the 'trains running'
grantmagdanz.eth 🦇🔊's avatar
@zebo this is something we are actively working on improving. Will DM you to figure out specific issues.
@nathanworden may I receive an invite to the Valuation group, please? Also I am all in for the idea of going to this direction.
Nathan Worden's avatar
Just sent you the invite! You should see it in your alerts section up at the top :)
Jon Gall's avatar
Love this. There’s for sure a different energy here on Commonstock. One that promotes education and transparency. I’ve already learned so much by being in the different chats. The conversations are actually valuable unlike a lot of the investing communities I’ve been apart of.
Nik Carpentieri's avatar
Well said. Where can I get an invite to AI & Semi groups @nathanworden 😁
Nathan Worden's avatar
Just sent em' to you! Check your alerts at the top :)
Thank you for writing this post, I found Commonstock through the craziness of what has been happening from a tweet that you posted last week. I wasn't sure, what Commonstock was offering and I wasn't sure if it was safe, but I was intrigued by the concept. After now lurking for over the past week, I'm glad that I gave it a try and enjoying my time and experience on this site. I am excited to join in the conversations and add my experience and background to the common voice. I too would like to join the AI, Semi, & valuation group as I believe I have insights to offer.
Nathan Worden's avatar
^Love this thoughtful answer. Looking forward to chatting! Invites incoming.
Curtis's avatar
So great to hear! Thanks for giving us a chance :)
Rachel Wolitzky's avatar
Welcome! @lapzerus It’s a great place to be

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