Ridiculous in the first place.
S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
441–450 of 524 posts
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#442Letting 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 companie…
In particular, good to marinate beyond the (typically 6 month) lockup period during which investors cannot sell stock
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#443Letting 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 companie…
What happens if the auditors use software that consumes the model provider they are auditing? Seems like an obvious conflict of interest for the model, no? I think that’s not how that works today, but I’m sure that it could and will one day.
If it’s like other things, the auditors of Anthropic will have a contract with OpenAI and vice versa.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#444Letting 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 companie…
What happens if the auditors use software that consumes the model provider they are auditing? Seems like an obvious conflict of interest for the model, no? I think that’s not how that works today, but I’m sure that it could and will one day.
Easy to test against by going multi model audit
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#445Anyone care to explain to me why any of them even considered it? What's the specific upside from the perspective of an index provider? Seems to me like all it does when you bend the rules is erode trust, so whatever the upside is, it must be pretty significant since it comes at such a high cost to the credibility and trust placed in the applicable index and the market itself.
SpaceX got NASDAQ to change their rules so I guess people thought S&P might be similar. NASDAQ probably did it because they make money by the listing going to them rather than the NYSE.
Did you consider they are adding SpaceX to the index because it is a good idea?
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#446Earlier quoted context omitted.
Let's say Alphabet shifts further to ~become a 100% AI company in the same way that Anthropic and OpenAI are. Should they be removed from the index? If not, why not?
The logic isn’t the same. We’ve had plenty of history to judge Alphabet’s financials. It’s less about AI and more about allowing the market to appropriately price the stock after seeing their filings for a period of time.
The financials will be very different when you start doing something entirely different, with all your might.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#447Is there any global indexes that include only companies which have been profitable in past? Say with same criteria of 1 quarter with 4 consecutive positive quarters overall? Might lose some gains, but probably also cut away lot of more risky bets.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#448Is there any global indexes that include only companies which have been profitable in past? Say with same criteria of 1 quarter with 4 consecutive positive quarters overall? Might lose some gains, but probably also cut away lot of more risky bets.
I've been considering VTV lately, it's somewhat close to what you're describing. It tracks CRSP US Large Cap Value which has more rules in place to be considered for inclusion than S&P 500, but isn't crazy exclusive.
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#449Earlier quoted context omitted.
It’s because you just lived through a 10 year period of the best growth for passive, and there is a tremendous amount of marketing online for passive. I don’t disagree with your basic idea, but not being able to articulate alternatives so that you know when they make sense is going to hurt you. We are possibly seeing a major failure mode for passive for the first time.
>and there is a tremendous amount of marketing online for passive. There’s a lot of advocacy for passive investing because it’s practically the only good option for retail investors. Managed funds can actually afford to advertise. There are problems with passive investing becoming such a large portion of public investment, it is practically corporate welfare. But when the alternatives are at or around 2 and 20, with…
Passive has been good and I’m mostly a passive investor. I’m arguing that we are seeing structural changes which expose you to more risk and may make alternatives more appealing.
> because it’s practically the only good option for retail investors.
If you’re hearing about something, it’s because someone organized that message
> Managed funds can actually afford to advertise.
Have you seen how much money and corporate influence Vanguard and black rock have?
> with most performing worse than index funds
At the same risk level?
Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic
#450Earlier quoted context omitted.
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
You missed the plot and are only reinforcing the point. Where in my comment was I saying SpaceX deserves an exception? I am just stating what I observe anytime Elon or one of his companies comes up, it devolves into the extremes. Sorry you fall into that trap.
It's just a coincidence that whatever Elon does impacts the life of millions of people.