Responsible decision as things stand today.
S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
271–280 of 524 posts
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#272Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.
You'll eventually get exposure to it when it gets added in 12 months. Unless there are better profitability criteria. Ultimately it's all about market returns. If other indexes add it and outperform then eventually money will shift to those funds that do better.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#273Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.
Well it’s just the S&P. Other big indices may include it eg the Russell 3000. But it’s not quite as big of a deal as it seems because the market cap on which they scale is the float not the whole value of the company.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#274Letting new stocks marinate in the market and get 4 quarters of SEC filings along with following all the GAAP accounting practices will definitely help evaluate them before inclusion. The last large boom/bust cycle had a couple of companies, at least, that were doing illegal things. I'm not stating that these three are, just that nobody knows and the process should play out.
I do wonder if any of these three companies are using AI to do their accounting and bookkeeping. What happens when there are AI hallucinations affecting those outcomes?
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#275Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.
Same here. I was so upset about the prospect of my index funds / retirement savings being force fed 100X revenues investments in large size that I emailed my Representative and both Senators. And to add to the irony, I used ChatGPT to help me write these letters.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#276Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.
Russel 1000 will include it in 5 days.
Nasdaq in 15 days.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#277Earlier quoted context omitted.
I think caution is most warranted, but I also think it's likely that SpaceX will become a real-life Weyland-Yutani Corporation (i.e. "The Company") of Alien and own space. But I'll be long dead before that plays out.
I've always favoured Tessier-Ashpool S.A. as comparable. The creation of AI's and Freeside and Musk's pronatalism slots in nicely.
Musk isn't a natalist. The global population is going up. And yet, he complains about not enough births. Because he is a white supremacist. He wants white people to outnumber other races. The current state of affairs would be satisfactory to him if he were merely a natalist.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#278Earlier quoted context omitted.
The top level comments are not smart or well conveyed, they are just the other side of the internet echo chamber. “Good, the rich don’t need money”, etc. I think Elon owned companies are just a third rail for any kind of intelligent discussion because it turns into Elon fan boys arguing against Elon haters.
I think you pierced the hearts of Elon haters/fan boys and are getting downvoted. Absolutely agree with your statement. Most top comments are just upvoted from the hivemind. Elon topics are always the worst because nobody even uses critical thinking and will just upvote/downvote based on the theme of Elon = Good or Bad.
So what's your intelligent argument as to why SpaceX's deserves an exception? Please lay out a case that's comessurate to the gravity of such an exception
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#279Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.
You'll eventually get exposure to it when it gets added in 12 months. Unless there are better profitability criteria. Ultimately it's all about market returns. If other indexes add it and outperform then eventually money will shift to those funds that do better.
I think it will be longer than 12 months, if ever.
> To join the S&P 500, a company must demonstrate positive GAAP net income in both its most recent quarter and the sum of the trailing four consecutive quarters
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#280Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.
You'll eventually get exposure to it when it gets added in 12 months. Unless there are better profitability criteria. Ultimately it's all about market returns. If other indexes add it and outperform then eventually money will shift to those funds that do better.
More than likely none of these AI companies will exist 12 months from now. Their carcasses will be devoured by entities with enough money to buy up the scraps after the bubble pops and the market implodes.
Neither SpaceX, OpenAI or Anthropic have a future. What's a shame is that had Elon not merged SpaceX with xAI it might've actually had a future - but he had to go and ruin it.
What an idiot.