Investing involves a lot of different strategies. You can be a momentum investor, a tech investor, a value investor, a commodities investors, a real estate investor, and so on…
All of these different strategies have their positives and negatives. Some have lower returns, but less risk. Others have higher returns, but more risk.
For all of these strategies, there is a simple risk to reward ratio.
In other words, “How much are you willing to invest based on the possible returns, considering the risk?”
Clearly that is a question that will have an infinite amount of answers. Some would argue that real estate is the best investment because there is low risk. Others would argue that tech is the best investment because it’s infinitely scalable.
There are, however, some instances where you can put a small amount of money to work for a potentially large return. This is known as an asymmetrical investment, where the capital invested is not comparible to the potential return.
These types of investments are what everyone should be looking for – small investment, big reward.
Now, don’t read this the wrong way. Trust me, I am personally invested in all kinds of safe plays. Real estate, precious metals, blue-chip stocks, etc…
That stuff works. Investing in safe opportunities that provide safe and consistent returns are what will ultimately build your wealth.
At the same time, there are certain investments that you’d be crazy not to at least put a little money into. I’m talking about investments that have the potential to provide big returns for little investment.
These types of investments allow for massive returns that can then be reinvested into safe and reliable opportunities.
For example, if you put $1,000 into Bitcoin when it was at $1, then you’d have around $600,000 worth of Bitcoin today. This is obviously an exaggerated example, but you get the point.
Today, there are three opportunities that present similar asymmetrical opportunities. Low investment for potential massive return. Here they are:
If you’ve been reading the Explorer Report for even a month, then you’d know I’m bullish on cannabis.
I believe that cannabis is one of the biggest investment opportunities we’ll see in our lifetime, and I’ll tell you why…
Let’s first look at several facts.
Fact A = There is already a strong ‘black market’ cannabis industry. This means that we already know, 100% for sure, that there is a large percentage of the worldwide population that consumes marijuana. This means that there is a consumer base that is already existing and no adaptation period or explanation needs to be developed. The consumers already exist!
Fact B = Many countries are currently making cannabis legal. The list grows by the day, but it’s only a matter of time until the US (who, whether you like it or not, is the major influencer of world politics) makes it legal.
Fact C = The ‘acquisition game’ is just getting started. Recently, Constellation Brands (an alcohol company) invested nearly $4 billion into Canopy Growth (the largest cannabis company). It’s important to note that Constellation Brands is not the largest alcohol company. In fact, there are many alcohol companies that are much larger than Constellation Brands. And if we were to look at the tobacco industry, or any other vice-industry competitors (ummm… pharmaceuticals???), then we’d all see that there is a massive amount of money on the sidelines that has yet to enter the cannabis market.
If we look at these three facts, then a larger picture starts to form. Of course, there will be many bumps along the way. This will not be a smooth sailing investment opportunity.
However, if you can choose the right companies to invest in, then you’ll be positioned for massive returns.
2. Asia Tech
This is especially relevant right now with the US and China trade wars that are going on.
If you were to watch the news all day, then you’d probably think that China is on the verge of collapse… or that the US might go to war with China soon.
If you actually spend time on the ground in China, then you’d see some really incredible things going on. I’m talking technological advancements that aren’t taking place anywhere else in the world.
Now, this doesn’t come without risk… because there is plenty of that.
But, the opportunity lies in what the news is presenting us. Because public sentiment has turned bearish on China, that means that there are less people looking to invest, which means there is more opportunity for those willing to look.
Perhaps this is a late suggestion.
Should you have invested in cryptocurrencies several years ago?
Regardless of the past price appreciation, the opportunity is still here. The early gains have already been made, but we’re all still in the very early innings of crypto adaptation and implementation.
How much higher will the value of crypto currencies go? Nobody knows.
For a relatively small investment, you can buy into the top crypto currencies right now and at least stake a claim into a potentially enormous return.
Everyone has a story (myself included) about how they invested in bitcoin, but lost their hard drive… or heard about etherium, but thought it was a scam.
Don’t make the same mistake again.
Now comes the important disclaimer… just like any investment, don’t invest more money than you’re willing to lose.
Will bitcoin go to zero? Maybe. It also might go up to $100,000. So, a small investment is probably worth it.
Same goes for cannabis and Asia tech. Just put a small amount of your money to work, while you leave your life savings to safe plays.
The asymmetrical returns you could get from cannabis, Asia tech, or crypto could be a life-changer. Don’t pass on the opportunity.