The recent SpaceX IPO has caused quite a stir in the financial world, with the Barefoot Investor, Scott Pape, adding fuel to the fire by investing in the company despite his initial skepticism. In a letter, Pape questions whether he's an idiot for investing in a simple, low-cost index fund that includes SpaceX, despite its significant losses and overvaluation. He highlights the absurdity of the situation, noting that SpaceX's impact on his investment is minimal, with Vanguard estimating it would only account for 0.06-0.08% of his international index fund. Pape's perspective is intriguing, as he embraces the idea of beating the experts who often lose to index funds, as evidenced by the SPIVA report. He finds it amusing that the media and investors are so worked up about SpaceX, when the reality is that his investment is relatively insignificant. The article also mentions the frenzied scenes on Wall Street, with SpaceX's stock climbing 31% on its first day of trading, and the company's market value surpassing $2 trillion. The success of the IPO is attributed to Elon Musk's continued support among investors, despite his controversial actions and comments. The article concludes by questioning the ethics of Musk's achievement as the world's first trillionaire, especially given the financial struggles of many Americans. It raises the question of whether the market's enthusiasm for SpaceX is justified, considering the company's losses and the reliance on unproven technology. Overall, the article provides a critical and humorous take on the SpaceX IPO, offering a unique perspective on the financial frenzy and the potential implications for investors.
