What would you do with a spare $1 billion per year?
Suffice it to say, it would be a great problem to have. Yet in all seriousness, if you did have that kind of money on hand, would you devote it to trying to climb into the cosmos?
You would if you were Amazon.com (AMZN) Founder and CEO Jeff Bezos.
The newly minted second-richest man in the world just incidentally bumped Berkshire Hathaway’s (BRK-B) Warren Buffett into third place on that rich list. But Mr. Bezos has his sights set higher … way higher … for his next leap.
We know this because he has just announced his plans to personally finance his space exploration venture.
The name of the company is Blue Origin, and Mr. Bezos revealed on Wednesday that he plans to sell about $1 billion in Amazon stock per year to finance his rocket company.
The brilliant bookworm made the announcement alongside a reusable rocket booster, and a mock-up of the capsule that he plans to use to vault people into space.
The Amazon CEO … and, in my view, a bona fide business genius … also said he hopes to build Blue Origin into a commercial and tourist venture.
So, how much will that cost?
Well, about $2.5 billion, according to Bezos. That’s the kind of money it’s going to take to develop bigger rockets capable of lifting satellites and, ultimately, people into orbit.
Much like his fellow trailblazing tech billionaire Elon Musk of SpaceX and Tesla Motors (TSLA), Jeff Bezos thinks the key to the commercialization of space is reusable rocket parts.
Both Musk and Bezos argue that this is crucial to reducing the cost barrier into the field. On Wednesday, Bezos said that would lead to a "golden age of space exploration."
Here’s the money quote from the man himself:
"If we can make access to space low-cost, then entrepreneurs will be unleashed. You will see creativity, you will see dynamism, you will see the same thing in space that I’ve witnessed on the internet in the last 20 years."
All of this is exciting for a sci-fi space nut like me. I love the idea of privately funded space exploration designed to be commercially attractive to industry, as well as within reach financially for space tourism.
I can tell you right now that as soon as it’s feasible, safe and affordable, I will be buying a ticket to the cosmos.
Imagine looking down on this Big Blue Marble from space. Think about the different perspective you’d acquire … not just visually, but also philosophically.
I am definitely in!
Now, as glamorous as the whole space exploration concept is, what’s less glamorous … but ultimately much more tangible to the average person … is realizing the wealth-building force that allowed both Bezos and Musk to reach for the heavens.
That force was their respective businesses down here on earth.
Bezos, of course, built his fortune by selling books. The glorified bibliophile created Amazon as a place where book lovers could buy what interested them. But he reimagined it and re-engineered it for folks to benefit from the community-like recommendations and suggestions offered by the website. And he built upon it to turn a vision into a sprawling empire.
Amazon shares have surged 2,000% in the past decade to $900, which puts its market cap near $440 billion.
Musk built his fortune as co-creator of the online payment company PayPal (PYPL), which made it safe, simple and easy to transfer money to another party via the internet.
So, even if you have no desire to ride a rocket into space, you can certainly ride your way to big portfolio gains. The way to do that is to identify companies that are changing the game and doing something that will transform the way the world operates.
Amazon.com and PayPal are just two of those kinds of companies, but there are plenty more potential wealth-builders where those two came from.
The trick for investors is identifying them early, and often … and doing just that is one of the many things we are doing here at Uncommon Wisdom Daily.
Someone who could spot a trend forming from lightyears away is Sean Brodrick. And he sees an "air pocket" in gold that the world’s favorite yellow metal looks eager to fill. Take it away, Sean …
Mining for Money
Gold Will Surge to Fill the Gap
By Sean Brodrick
The market is thinking that gold is topping out here, hammered by expectations that the Fed will raise interest rates.
Sure, gold zigs and zags. A short-term pullback never surprises me. Still, investors should really be keeping their eyes on the gap higher. Because gold wants to fill that gap.
What gap am I talking about? The huge gap in volume that lurks overhead.
On this chart, the dark line is gold’s price action. You can see it is testing overhead resistance.
The horizontal bars are "volume by price." In other words, this shows the amount of volume at each $20 increment during this nine-month period. The gray side of the bar is bullish volume; the pink side of the bar is bearish volume.
You can see an area where the price moved so quickly that there was little to no volume. This formed form what you might call an "air pocket" in price action, leading up to $1,310.
You see, price has what traders call "memory" because of trades done at different prices. If there isn’t any trading volume at a particular price, there isn’t anyone who got stuck holding shares there. So when a stock gets back to that price again, there’s nothing to stop it in either direction.
- On the way down, these air pockets can lead to big drops.
- On the way up, the air pockets can lead to explosive rallies.
The first time I wrote about this chart, on Feb. 6 for another publication, there were two huge gaps in the volume-price action. The first one led up to $1,250. It was filled shortly thereafter.
Now, we have this next gap to fill. This one peaks around $1,310. And gold wants to fill that gap.
And sure, it could take gold a while to work through overhead resistance at $1,250. In fact, I’m counting on it.
But the trend is higher … gold is in a new bullish cycle … the world has hit "peak gold" mine supply … and the Fed’s rate hikes aren’t the bugaboo the market makes them out to be.
So sure, maybe gold will go back and test its uptrend. If we’re lucky. That would be a heck of a buying opportunity. But then — THEN — that gap will call gold higher like a siren song.
It wants to be filled. Be ready for it.
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Good luck and happy investing,
Uncommon Wisdom Daily