alt Hacker NewsIf you want to play “active investor” and pick and choose what companies you invest in, don’t be surprised when you underperform the whole market.
SpaceX could rise to be a major winner that makes people a lot of money. And then what? You missed out and underperform the whole market.
Replies
amoss • today at 4:53 PM
Alternatively you may want to be a passive investor using the current rules for index inclusion, rather than having them altered to favor this loss-making trashcan on fire.
nrclark • today at 4:15 PM
OK, but SpaceX is not printing money out of thin air. And neither does the stock market. Somebody will be left holding the bag eventually.
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> SpaceX could rise to be a major winner that makes people a lot of money
Based on "sane"/traditional metrics that and much more is already priced in into the IPO valuation.
e.g. Google had a many times lower P/S ratio at their IPO and was actually profitable (and software companies usually have higher valuations than capital intensive ones like SpaceX anyway). SpaceX is already valued at more than Google was 10 years after its IPO while barely making a tiny fraction of its revenue.