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,
Posted Using InLeo Alpha
Could be a winner, this strategy but it is also quite risky. I prefer a medium risk approach. More diversified and also quite some blue chips to stabilize. Companies like McDonald’s, Microsoft or Apple can still do a 3x within a decade which is good enough for me. The boost comes from my crypto portfolio like Bitcoin and Hive.
That's a good way to put it. To have different buckets for different investment goals. In my opinion a very good blue chip Mid/Large which is the leader in its field might even be less risky than a behemoth. Simply because they do not have much topline to lose to competition.
Nevertheless, you listed great stocks which I am sure will perform at inflation +2/3% per year!
They will probably do more than 2-3% per year. 😉
I also prefer a more conservative but least risky approach, investing more in quality but growth or value stocks
Agreed, I would argue that Spotify has a better quality than most FANGS as its revenues will increase, margins are expanding, it has also 20% of Mkt Cap in Cash and is the clear market leader.
For Reddit, it is still not making money but should next year. It does not burn cash and also has 15/20% of its Market Cap in cash on hands with no debt. Riskier than Blue Chips or Spotify for sure!
I’m following those stocks that will be alive in at least 10 years time, I don’t know if Spotify or Reddit would survive, technology changes very fast
Fair point! They will be alive for sure.
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My strategy mostly revolve around betting on HIVE, LEO and @splinterlands for the long term. I did not take enough profits in the previous bull market. I pan not to do the same mistake this time.