4 ms·
SpaceX's IPO is a disaster waiting to happen for your pension fund
- bko 4mo ago> Shareholders will have no say in how the company is run. If and when he makes a mess of things, they will find it very hard to sue him because of various waivers. The board – that entity that is supposed to look out for shareholders - is loaded with Musk loyalists. Does anyone seriously believe that an independent board of investors can deliver better results than a founder? If you look at the companies that built the most amount of wealth in the last 20 years, from Meta, Google, Tesla, Alphabet, Nvidia, what many of them share is more or less singular control by the people in charge. Sometimes its super-voting shares but other times its just founder mentality and ability to make big bets and set the direction. The rest of the article is similarly non-sensical. Everyone will be forced to buy it but it's going to crash! The prior investors will sell their shares! The IPO is an exit mechanism!
- fjni 4mo agoI’d be genuinely curious about the data on this. There are examples I can think of with a more traditional governance structure that did well: Apple, Amazon, Microsoft.
- protimewaster 4mo agoCompanies that are 80, 100, 200 years old or more have trouble with founders dying. One of the disadvantages of relying on the founder is that founders die. If I'm trying to keep a fund going for the next 100 years, investing in a company that relies exclusively on a person who will be dead within 100 years seems problematic.
- nutjob2 4mo agoYou're assuming cause and effect run in that direction, but arguably companies that do well are going to have stable leadership. Governance matters when things go of the rails. There is also the matter of how well these companies would have done with alternative leadership. They might be running well under capacity. Finally the stock prices are a terrible metric since they are based on sentiment. See various meme stocks.
- physPop 4mo agoThats the definition of cherry picking and survivorship bias
- drak0n1c 4mo agoCorrect, everyone complains about "enshittification" but they fail to recognize that the most egregious cases occur when a company with a dedicated founder/leader transitions to rule by committee.
- nwah1 4mo agoA lot of founders are the cause of enshittification. In fact, most of the big names I can think of are.
- altmanaltman 4mo agoAlphabet owns Google, why did you list them seperately? Why is Microsoft not included? Why is Apple not included? Pretty insane to then claim the article is non sensiscal.
- transdev12 4mo ago[dead]
- dismalaf 4mo agoWhy should people invest in SpaceX? Because they're going to be propped up by the US government for a long time. Nations need a way to get to space. SpaceX has launched more rockets than anyone in the last few years. Including 3x more than China's space agency.
- lava_pidgeon 4mo agoI'm happy to tell you that Nations don't want to be dependent on the US government and Elon Musk. So there is a big race to build the next SpaceX. And I can assure you building rockets isn't rocket science. Other companies will follow propped up by their governments.
- dismalaf 4mo ago> And I can assure you building rockets isn't rocket science. Is this parody? > Other companies will follow propped up by their governments. It's cool to say but it hasn't happened. And rockets literally are, well, rocket science.
- NuclearPM 4mo agoWoosh
- verzali 4mo agoFlying rockets is rocket science. Building rockets is engineering.
- xdavidliu 4mo agothis comment is nonsensical
- deleted 4mo ago[deleted]
- lava_pidgeon 4mo ago
- mycelos 4mo ago[flagged]
- cyanydeez 4mo agoI already emailed my pension mangers to divest from the fascists (Easily identified by Trumps inaugural pphotos.
- Dig1t 4mo agoYou should short the stock. If you think it’s a big scam and not actually worth being in the top 500 US companies, you could make a lot of money.
- mswphd 4mo agonot everyone responds to a perceived social ill by thinking "maybe I should gamble"
- Dig1t 4mo agoShorting is the best mechanism for exposing scams and frauds in public markets, in fact that’s really the only reason it exists. It’s an incentive for people to root out corruption and graft. If you truly believe that SpaceX is a big scam and it’s not actually worth enough to be in the S&P 500, then taking a short position not only will net you a bundle of cash, it will do the public a service by helping to expose a fraud and prevent future companies from doing the same thing.
- mswphd 4mo agoAgain, not everyone responds to a perceived social ill by gambling. Timing a short is still gambling.
- robocat 4mo ago> Shorting is the best mechanism for exposing scams and frauds in public markets That societal benefit is mostly worthless to investors. Investors need to capture a good return (risk adjusted) to have any incentive to expose frauds or scams.
- cyanydeez 4mo ago
- davidgillion 4mo agoBunch of air heads they hear trillions and they follow the nut job