John Stepek

We don't like to talk about anything we haven't tried ourselves.

I feel I would have a few more hoops to jump through, so I probably won't.

But yeah, I think it's good to see how the actual admin side of these things works for definite.

It's quite simple, isn't it?

Yeah.

I mean, it's a lot of...

hope basically um which is kind of traditionally been what elon musk trades in i mean i was having a look at a couple of valuations from relatively sensible people this morning um and i mean it varies a lot i mean morningstar put out a valuation where they said they reckon it is about worth about 780 billion which is about half of what you know elon's looking for

Whereas Aswath Damodaran, who is an excellent analyst in the States, he's a very clever guy.

I would say he's pretty good at valuing these blue sky companies because he's quite open-minded, but he's also not stupid.

And he put about one and a quarter trillion to maybe 1.35 trillion as a sort of feasible kind of thing.

But obviously he's saying, but it's still a lot more expensive than that.

So it's more he would probably wait until it had dropped a bit after the IPO and then he would maybe consider it.

But I think that shows you that this isn't something that you would buy now based on the fundamentals.

Well, I know.

You should have phoned me before you make these kinds of decisions.

I mean, come on.

no but so yeah you can't do it based on the fundamentals it's basically based on the idea that they're going to be able to hype this up so much and to be fair they've got almost every investment bank in you know in the US kind of working on the deal most of the indices have essentially agreed that they'll take SpaceX

But with the notable exception of S&P, which I think is quite a big deal and actually quite an interesting thing for passive investing overall.

Because that's going to represent a real kind of bifurcation.

It's a real decision point for you now whether you buy a passive US tracker that doesn't have SpaceX in it or one that does.