20/08/2022
How you can invest like Elon Musk
If you want to invest like Elon Musk, the first thing you should do is to buy shares of Tesla stock since it makes up the vast majority of the billionaire's net worth.
Obviously, the private equity side of his portfolio is a roadblock. You can't simply buy shares of SpaceX or The Boring Company on the public market, and most people aren't able to participate in funding rounds for those businesses. The next best thing you can do would be to find publicly traded companies with a similar focus -- for example, many investors have called Rocket Lab USA (NASDAQ:RKLB) the closest thing to SpaceX on the public markets.
Finally, while it would be easy enough to follow Musk into cryptocurrencies, there's one big thing to keep in mind. As someone with literally billions of dollars in assets, Musk's risk tolerance dynamics are much different than yours. In fact, his goals are likely less about balancing investment growth and risk management and more about building businesses that align with his personal goals and image.
In other words, Musk could lose $1 billion on Dogecoin tomorrow and still be incredibly wealthy. Remember that you (probably) can’t afford to lose $1 billion before pulling the trigger on a cryptocurrency investment or any other type of investment just because a rich and/or famous investor has bought it. Even Musk himself has advised investors not to put too much of their money into crypto.
The bottom line is that although Elon Musk is very wealthy, most of his net worth is tied up in a single stock (Tesla, and, more recently, a small stake in Twitter) and private companies that you or I likely cannot invest in. Besides buying Tesla stock, if you want to invest like Elon Musk, becoming an entrepreneur might be the best way to go about emulating his style.
