History will end up laughing at SpaceX, the ‘craziest IPO in the history of man,’ says famed investor
With Elon Musk’s SpaceX now embedded in the Nasdaq 100, the prospects of the rocket company have–directly or indirectly–now slipped into the stock portfolios of millions of people around the globe.
But joining the Nasdaq index has done little to convince critics, who are dubious about the lofty aims of the company. In the prospectus ahead of its offering, SpaceX said its goal is “to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars.”
Such statements will be laughable to investors of the future, says Jeremy Grantham, co-founder of investment giant GMO. Admittedly, the billionaire British investor is known for his skepticism: He’s a self-professed “permabear” and has warned AI’s impact will result in “blood in the streets.”
It is perhaps no surprise, then, that he is unimpressed by the (literally) out-of-this-world intentions of SpaceX. “Everyone’s lining up to tell you to buy the craziest IPO in the history of man,” Grantham told Morningstar’s The Long View podcast in an episode released this morning, “In 50 years, they’ll be telling and writing stories about SpaceX, and they’ll be quoting you paragraphs from the prospectus, and you will be laughing at it.” [Continue reading…]