Behind The Scenes Look At How I Invest In Moonshot Companies

Picking individual stocks is not for the faint of heart. In fact, bulk of your investments should be in well diversified low cost index ETFs. Knowing which stocks will be winners or losers in the future is tough to predict.

What Is Moonshot Investing?

Moonshot investing is investing in companies you believe will have a meteoric rise. It is based on identifying a trend. And knowing that the market will rate the companies much higher eventually.

Invest wisely but don’t be afraid to take some risk. I often see investors pile into old and safe companies without paying attention to how the world is changing around them.

What Are Moonshot Companies? Moonshot companies are the basket of companies or a single company that you believe will capture a lions share of the new trend. If we continue with the environmentally friendly vehicle trend, there was a clear sign that hybrids and electric vehicles would benefit.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

Avoiding Price Volatility in Moonshot Companies One of the biggest challenges of Moonshot companies is that they suffer from tremendous price volatility. These are established companies but it is hard to value the business. They tend to function more like startups.

Leverage Your Human Capital Unemployment claims across the county have spiked up. The quarantine measures in various countries have decimated entire industries.  Unless you work for a government entity or in the medical profession; it is only a matter of time before your job will be on the line.

What Is Dollar Cost Averaging? Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases to reduce the impact of volatility on the overall purchase.

Using Dollar Cost Averaging For Moonshot Investing Dollar Cost Averaging is a way for an investor to neutralize price volatility. The main benefit of Dollar Cost Averaging is that you buy less shares when prices are high, and buy more shares when prices are low. The goal is to buy more shares at a lower average cost per share over time.

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