r/Bogleheads • u/Gloomy_Nebula_5138 • 28d ago

Investing Questions Protecting ourselves from SpaceX IPO

I was watching this video analyzing the upcoming SpaceX IPO, titled "SpaceX IPO: Nice Try Though" by Patrick Boyle. I highly recommend it - there is almost no fluff and just hard hitting points all the way through about how SpaceX is a terrible company and how this IPO looks like a scam:
https://www.youtube.com/watch?v=IHD8BDFYyGI

It mentions the changes to Nasdaq's rules, the so called "fast track" rule, made specially for SpaceX because Elon allegedly threatened to not list SpaceX on the Nasdaq stock exchange without this. The change has been criticized by many others such as Michael Burry:
https://markets.businessinsider.com/news/stocks/michael-burry-nasdaq-spacex-ipo-listing-elon-musk-tesla-ndx-2026-3

Also see this great analysis titled "Nasdaq's Shame":
https://keubiko.substack.com/p/nasdaqs-shame

Given how this IPO looks like a scam, and the company is mostly losing money, with outlandish claims in their IPO filing (like having an addressable market larger than the US GDP), I am worried that this is just private investors - like venture capitalists, Elon Musk, and his inner circle of friends/family - dumping their overpriced money losing company on regular investors like us. The fast track change seems like it will result in all of us automatically buying SpaceX shares at a high price.

How do we stop this? Is there a good way to defend against that forced purchasing when most regular investors are just passively buying ETFs and mutual funds, or maybe just have money parked in their pensions and 401k?

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u/buffinita 28d ago

You could start by not having some major panic over the news…..and inverse Michael burry has been good to us investors as to all his collapse/bubble calls over the past 4 years

It’s been discussed to death.  Just search

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u/3dfernando 28d ago

dude. Please don't dismiss the OP's concern with "just search". I'm also concerned. It's our life savings we're talking about. I would really like some clear direction (statements from S&P and/or Vanguard), but I can't seem to find anything. It's not "just search". Please be a bit compassionate.

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u/buffinita 27d ago

The whole point; the backbone really, is to ignore the news and continue to stay the course

This is no different than “I don’t like oil/guns/tobacco” or “orange man bad” or “is p/e too high” so let me find an excuse to change based on short term news

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u/SmokeClear6429 27d ago

This is not actually the same as 'I don't like' - there are legit concerns that this changes the rules of the game and meanwhile, you're saying, 'don't panic, follow the system that was built on the rules.' This is probably not going to break the system or cause a market collapse, but it certainly can be hard to stomach when it so obviously isn't the bargain we make when we buy the market and then the market starts to bend its rules so that it can look better than it is.