QUESTION: Home Run Wealth Plays
I am 22 and want to put 5% of my assets into “home run” plays - think shitcoins / TQQQ / sports bet parlays. Basically I am looking for anything riskier than equities. I want it to be so risky such that if I told a normal educated person what I was doing with this money they would actually think I am mentally disabled.
What are the best ways to allocate this ~5% of wealth? Could literally be $10 a day on a new shitcoin or 10-leg first-scorer parlay on Draftkings.
Finance song production for my music project I will let you own 80% of the streaming royalties for anything that you finance I already put out 86 songs the project isn't successful yet but if I accomplish my mission of becoming massively successful then it will be a good deal for you probably. I will make you an official advisor to the project and you can help me strategize how to grow it. I have like 3k on IG and sub 1k monthly on Spotify, started the project about 2 years ago and played 70+ shows so far. If you told any normal person that you were doing this they would call you mentally disabled cause I only made $98 so far from the streaming royalties ACROSS ALL 86 SONGS over the past 2 years. I don't particularly need financing right now and have sunk way more money into the project already than you would ever contribute towards it, but could be interesting for various reasons. I am pretty confident I will eventually blow up to some degree, attain a 'cult classic' type of following. Let me know.
man shot his shot, respects
Why give this bloke 80% of your royalties when you say that he'll give you less than you've already put in yourself?
80% from the songs that he pays for not 80% of all of the songs...
This is the only answer to such a question.
Always liked doing a small allocation to somewhat macro-related ETFs (i.e.: URA performed fairly well on a TTM basis).
Edited- See kellycriterion's response below
I don't think this is a valid point. Look at the actual data for TQQQ since 2010. It's a 200+ bagger since 2010 on a dividend reinvested basis. That's a monster 46%+ CAGR for 14 years. If you get 1 or 2 runs of that on $50-100K, you're set, man.
A banker can commit one bonus to TQQQ and basically have a call option with a decently high payout percentage that in 15 years, that one bonus on its own would be enough to retire on as a banker, particularly if you can time the bullet during a doldrums time like March 2020 in COVID. Do you know how huge that is?
You're absolutely correct. Assuming what you say is true, then TQQQ is actually a relatively safe way to make great returns. Definitely will look into TQQQ more this afternoon. Are you personally invested in TQQQ?
Just wanted to thank you for this. I actually love this play. Can't think of a better home run play than owning MSFT, NVDA, AAPL, GOOGL, META, and every other successful company on the nasdaq with 3x leverage over a decade+ time frame. Especially if you can get out before major downturns like March 2020 and in 2022. Basically if you think the market's going down more than ~5% you should drawdown because the levered 5% loss would be more than the 15% long term capital gains for selling. I'm fortunate enough to have received $50k from my parents for the purpose of long-term saving/investing, and I think I'm just gonna put it into TQQQ or 3x levered SPY and just watch the overall market instead of trying my luck with individual stocks like I have previously. I'd just like to ask how long have you been in these levered ETF's for and how has your experience been with drawing down in anticipation of market corrections?
First off, sports betting, unless you're doing tedious arb betting that will get you banned from books before you reach scale anyways, is always negative EV because of the edge that sportsbooks take. Bet for fun, not to try and make money long-term, because you're guaranteed to fail. Shitcoins can work in certain markets like the one we're in now. Just look at all the Solana memecoins that have 1000x'd in a week during this crypto bull run. Tough to sell though because of low liquidity and the crazy vol that your orders are gonna cause. Could definitely work as a home run play though. Honestly, best bet is what KellyCriterion said below, which is to put some cash into a 3x levered ETF like TQQQ and then shut up and wait for a decade or so. I do like this philosophy of setting aside an inconsequential portion of your net worth into moonshots. My last suggestion would be super early stage seed funding into a startup or multiple startups that you think have a chance (albeit a small one) that they could become huge successes.
Exactly. The point here is not the specific examples I mentioned (although I do like the idea of TQQQ), just that the riskiest asset 22 year old bankers that make more money than we could spend are provided by conventional wisdom is the S&P. I think we should allocate some money to riskier assets. I’m trying to just figure out what those are and if I am missing any obvious ones. Seems like TQQQ is best bet like I said in prompt but hoping someone might have other ideas as well
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