Everyday I learn new things from the financial market.
Today – I have come to learn that SpaceX is likely to be DIRT-CHEAP when I saw that Rivian just went public at $100bn-plus valuation!
Rivian is a great company, but who actually thinks RIVIAN IS MORE VALUABLE THAN SPACEX?
Recent SpaceX financing was at $100bn valuation and now we are seeing rumors that Starlink, which is a subsidiary of SpaceX, alone is contemplating an IPO at $70-80bn valuation.
That means SpaceX that excludes Starlink is currently valued at $20-30bn – the math is simple – $100bn valuation less $70-80bn valuation of Starlink.
Therefore the entire reusable rocket system that creates Starlink is $20-30bn. THIS TRANSLATES TO 20-30% of RIVIAN.
So.. this made me want to invest in SpaceX- but how do I do that? I am not an accredited investor and have no idea how to source SpaceX shares.
THE ANSWER WAS SIMPLE – If I can’t own SpaceX shares directly, I will own an investment vehicle that owns it. I won’t have control over those shares, but I will maintain economic exposure.
TURNS OUT – I could get my exposure to SpaceX through a mutual fund that is managed by a fellow Tesla investor: Ron Baron.
Baron Parners Fund, one of his funds at Baron Capital, owns significant amount of SpaceX.
Also he maintains very strong relationship with Elon Musk – having backed him as an investor with his capital AND with his appearances at CNBC. hopefully, he can leverage his relationship to participate into more SpaceX investments and get more allocation into Starlink when that company decides to go public.
SpaceX is 4% holding of the fund – I intend to keep investing into this concentrated growth equity fund so that I can increase my investment n Elon Musk (40% of the fund is also in Tesla).
Hyperinflation is here and I believe that only way to make money through bear market is to focus on truly differentiated growth companies because their revenue and earnings growth will outpace multiple compression from the broad market weakness – leading to higher valuation.
The math is as follows:
$5bn sales x 10x sales = $50bn company
$10bn sales x 8x sales = $80bn company
2x increase in revenue can more than offset 20% multiple compression
I am getting on board – are you?
Link to the fund can be found below.
*not investment advice
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Hello there. Really appreciate your introducing of BPTRX fund. I’m a guy living in South Korea, and I’m eager to get this fund to my basket(account). Do you know how can I get the BPTRX or BPTIX ? Should I make an account in USA territory?
I think you may need to open US account. Not sure. Sorry! I live in America so it is not an issue for me