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Don’t talk about fair valuations. Some people will say “who decides what anything is worth anyway”? Let people do what they want. If they lose their money they
by darth_avocado 4mo ago
Don’t talk about fair valuations. Some people will say “who decides what anything is worth anyway”? Let people do what they want. If they lose their money they signed up for it.
- Grombobulous 4mo agoI think the bigger issue is that oligarchs have gotten so powerful that they can just write down the valuation they want and the market will just agree with it blindly. The issue isn’t that investors will lose their money, the issue is that in some cases like Tesla they never do. The oligarchs are propped up by their own power over the behavior or the market — a power which is disproportionally larger than the objective value their companies bring to the economy. SpaceX is a company with the same revenue as Dick’s Sporting Goods.
- DoesntMatter22 4mo agoI don't get the complaint about Tesla. It's profitable, has little debt and 40 billion in the bank. What sort of "Power over the behavior of the market" do they exert? Like they can force people to buy their cars. Space X has the most sophisticated vehicle ever created by man. Dicks does not. If you are only looking at revenue then sure, but that would be silly, you have to look at what the potential in a company is not it's current revenue, if not then looking at Blockbuster in 2008 would seem like a great investment compared to Netflix which didn't have much revenue.
- Hikikomori 4mo agoDid their potential go up or down when their CEO started heiling?
- slumberlust 4mo agoConsidering that led to turning the white house lawn into a car sales lot, I'd bet it went up.
- DoesntMatter22 4mo agoSpacex just had the biggest IPO is the history of the world. Nearly 3x larger than the next closest one. So any view toward Elon hasn’t mattered much. Tesla itself still has the best selling car so I don’t think their potential was hurt much. People who hated him irrationally before hate him irrationally now
- deleted 4mo ago[deleted]
- jojobas 4mo agoI don't think most people signed up for it by just having some money in their pension funds.
- dgellow 4mo agoSpaceX isn’t in indexes yet… That will be included later this month in NASDAQ & co.
- nh23423fefe 4mo agoThey literally did. Investing in a broad market index means you want to own everything because you can't pick winners. You just imagine you can pick for no good reason.
- jojobas 4mo agoPension funds are forbidden from picking winners and are required to buy into these indexes though. At best you can choose which index.
- nh23423fefe 4mo agoYes. If you want to avoid paying taxes, ERISA says plan administrators must act as fiduciaries and provide options across risk/reward spectrum. If you elect "total market index" then you want to own SPCX. Open a brokerage account and pay taxes if you want something more specific. If you want your 401k to have an "I hate Elon plan" then what point are you making?