What happens in Vegas stays in Vegas. This saying was made famous because many people go Vegas to speculate or should I say to gamble. So is it okay to gamble in my portfolio???...YES if you have Kenny Rogers playing in the background. "You gotta know when to hold em, know when to fold em" --- or as I like to say be ready to lose all your money on a gamble or speculative investment.
In my inbox, I got a message today to vote on a merger, or a hook up as we like to say here. I own SPAC called Reinvent Technology Partners (NYSE:RTP). A SPAC or special purpose acquisition company that finds private companies and helps take them public.
Let me REMIX this in regular people speak:
- A SPAC is like when all your friends pool money together in advance to ensure that everyone can attend that vacation. The only difference here is a SPAC's money is being pooled in advance to buy shares in a private company before they go public.
- Going public is like the journey of a star high school athlete making it to the professional league. Or another example is a private company is similar to a teenager and going public is like that teen finally becoming an adult.
Why invest in a snotty nosed teen...well because we are betting in advance that high school Lebron James will be an amazing talent we see today in the NBA or that the snotty nosed teenager will turn out to be a million dollar earning adult later in life (think Bill Gates).
I own quite a feel SPAC investments as a gamble that if these concepts win...I may hit it big. It's much better odds than playing the lottery and some ideas are even cool.
The star athlete or teenager that RTP is investing in and taking public is Joby Aviation. Joby is a transportation company looking to develop an all-electric. The vehicle takes off and lands vertically and hopes to be offering services as soon as 2024. What a concept for beating rush hour in LA, traveling Green, and moving more toward the Jetsons future.
The moral of this investment is I didn't place a large bet but I'm prepared to lose it all. That's called speculation...not investing. The company DOES NOT make money today and may never...so I can't be mad if it fails. If it hits, then hopefully I've found the next Michael Jordan, Jeff Bezos, or Simone Biles as an investment.
#getthebag
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