The Risk Of NOT Investing Into SpaceX Stock At $115
In a Nutshell
Ricky argues that SpaceX at $115 offers asymmetric risk-reward for small position sizes, as a potential 100% recovery to prior highs outweighs the 100% loss risk when exposure is limited to amounts that can be comfortably lost. He warns against leverage or oversized bets, noting the company’s negative P/E, upcoming selling pressure from early investors, and speculative AI data-center dreams, but stresses that complete non-exposure means missing potential gains. The core takeaway: invest small amounts in high-conviction growth names like SpaceX during fear-driven dips, avoid leverage, and accept that some exposure beats none when the downside is capped by prudent sizing.
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Ricky from Tech Solutions discusses his personal approach to investing and trading in the stock market. He is a self-described huge Elon Musk fan who owns a Cybertruck, Model X, and has a Tesla Roadster on pre-order. Despite this fandom, he has not been a fan of Tesla recently due to fundamental performance issues rather than political reasons.
Ricky maintains a managed account for his children's investments (daughter aged 4, son aged 9 months) and has been investing for them only during market drawdowns. He began investing for his daughter in 2022 during a significant market downturn and continued during the Trump tariff war in the previous year. He emphasizes that his investment approach focuses on being invested rather than timing the market.
During a meeting with his financial advisor, the advisor brought up SpaceX and mentioned high price targets. Ricky had previously been vocal about not believing in or understanding SpaceX, but the advisor's suggestion planted a seed for further research. He views this encouragement to explore new investment opportunities as an important role of financial advisors.
Ricky stresses the importance of being able to carry informed conversations with financial advisors rather than blindly following their recommendations. He notes that many people have advisors but lack the knowledge to engage meaningfully in discussions about their investments.
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