Imagine a boom in space commerce within your financial horizons: Multiple space stations and off-world mining operations, as well as near- and lunar-orbit transport, and every commercializable aspect of such an industry. Even the bigger names in hospitalities, pharma, and food companies could rocket. The starting gun has already been fired, and the upside potential is vast.
How to get invested in space industry
When it comes to space investing, a few big names usually spring to mind, such as Amazon because of its link to Blue Origin via Jeff Bezos, and Tesla through its CEO Elon Musk and his involvement with SpaceX. Some of the bigger aerospace companies are also already involved with space industry, such as Northrop Grumman and Boeing, notable for their ties to NASA.
Maxar Technologies also has a key relationship with NASA, having worked with the space-faring organization to built the Restore-L system. This is part of a new industry designed to refuel orbiting satellites – an enterprise that will see businesses save money and reduce resource wastage. The tech can also be transferred to other projects, furthering lunar exploration.
Rock your growth portfolio with space mining
Mineral extraction could really take off – literally. While no big name in the metals and mining industry has yet broken ground off-world, it’s only a matter of time before the sector makes the leap. Investors seeking exposure can either take a chance on start-ups – there are already a few options in this area – or wait until one of the big names in mining gets on board, such as Rio Tinto or another big cap market leader.
Rio Tinto is a good choice in this area, since it has already worked with the Australian Space Agency (ASA) on coming up with extraterrestrial mineral extraction ideas. ASA’s Megan Clark, also of Rio Tinto, has stated that, “Rio Tinto is developing autonomous drilling and that’s the sort of thing you will need to do on Mars and on the moon.”
Investors may not have caught on the concept en masse just yet, but there is huge potential for upside in the space industry. Imagine if all the industries on the TSX were to start again from scratch, with all of the growth opportunities reset. Every growth stock would become entry level, meaning that investors could pick and choose where to make their millions – even their billions.
With the whole gamut of industries ripe for investment, from mining, manufacturing, healthcare, and pharma, to less obvious areas such as consumer staples, accommodation, and even agriculture, the scope for wealth creation in the fledgling space industry is effectively limitless. Infrastructure – including construction and energy production – is likely to be a particularly popular early trend.
The bottom line
There are already a number of business that can give investors early access to the mega-growth space industry. Whether it’s through shares in Maxar, Boeing, or Rio Tinto, stockholders with broad financial horizons could stand to rake in the capital gains once the commercialization of space takes off.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. David Gardner owns shares of Amazon and Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Amazon and Tesla. The Motley Fool recommends MAXAR TECHNOLOGIES LTD.