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.
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..