1% Ideas

Businesses for the 1% are great. You don’t need to sell a lot of stuff to generate a lot of revenue, and you get to sell super cool stuff - like a four day astronaut training course that ends with a trip into space.

Virgin Galactic has had 600 people put down reservations to go into space so far, and those reservations are worth a total of $80M. That’s ~$130K per person, and the price going forward will be $250K per person.

One of the most interesting data points from their investor deck was their research shows people are willing to spend 1-1.5% of their net worth for a single discretionary purchase.

This was a really interesting analysis to put in their deck because (1) it’s a fascinating number I had never thought about before and (2) it shows the types of questions investors are always asking companies - i.e., How big is your market?

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