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.

But most of us can’t resist the urge to pick stocks. I am not infallible to this human trait. Today, I will take you behind the scenes to show you how my method of Moonshot Investing. I have made plenty of mistakes in the past and lost money on individual stock picks. In fact, here are my 4 worst investments.

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.

I often see investors pile into old and safe companies without paying attention to how the world is changing around them.

Invest wisely but don’t be afraid to take some risk.

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. Investing in those options over the last decade would have rewarded you.

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. Let us take Netflix as an example. Initially they started with mail order DVDs. Then they moved into streaming. Now they are like a movie studio producing Original Content. Netflix had a monstrous decade but even if we exclude that time period you can see the price volatility..

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.

How To Setup Moonshot Investing Portfolio I setup my moonshot investing portfolio using my favorite investment platform M1 Finance. 1. If you do not already have an account, use my affiliate signup link  2. Determine how much you want to invest weekly. Let us assume you decide $100. 3. Pick your favorite moonshot companies. Can be any number.

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