Hi HODLers, Hiveans and Lions,
For the past 18 months, I realized that spreading investments in stocks when your "Brokerage investment" net worth is <$200k is useless as even if you make 10%/year (which is very good), this won't be life changing, except when you will be very old.
As I know a bit about investing, I have decided to focus on a few stocks I truly believe in. This means, I need 1/2 moonshot a year and if I am right a good portion of the time I could 10X my capital in just a few years.
I have started by investing in $SPOT #spotify. Most of you know the company. It paid off big as the stock has been up 150%+ since I bought it 18 months ago and I managed to 4X some of the long dated calls I had bought. I have since then kept a smaller position (as I still believe it could 3/5x on a 10Y horizon).
Why did I think this was a moonshot?
- Amazing product that I USE (this is important)
- Value for money as a consumer is extremely high (therefore even in recessions, I don't think I will ever cut my monthly sub)
- Growth is still high and they are consolidating their main business while expanding in adjacent lucrative areas (merchandising, ticketing, producing new artists and even social network initiative)
- They have a TON of cash and keep generating Free Cash Flow so they'll probably have to deploy it in other businesses or buy back their share/pay a dividend
I have reinvested most of the proceeds in other things. I have also loved Selling Puts on stocks I would love to own but I believe are a bit too expensive right now to buy Calls on or to add to existing positions.
I have:
- Bought TLTs (20+Yr Treasuries ETFs yielding around 4.5%)
- Sold PUTs on $PENN, $HOOD, $RDDT, $AFRM or even $SPOT
- Put some money in Money Market Fund while waiting for the next moonshot
Next Post will be about my next Moonshot: #Reddit $RDDT!
And you? What is your moonshot or your strategy?
Stay safe out there,