Commentary

SpaceX IPO. Down the Crown. Maybe I’m in.

Occasionally in life you get one of those rare opportunities to buy into something new, fresh, and on the cusp of the wave. Or you think you do. I went down the Crown to think about it. Gary had opinions. Sid had leverage.

Satirical cartoon for 45 Day Delay — Gary Gourmet at the pub bar, daydreaming of a SpaceX rocket.

Occasionally in life you get these rare opportunities to buy into something that is new and exciting, fresh and on the cusp of the wave, like buying Amazon in 2009 or buying Bitcoin in 2008. I think every investor dreams of buying something like this before anyone else, to make wild claims to their friends, saying “I bought X in 2008.”

A news notification popped up on my phone: Elon Musk set to launch SpaceX in a public IPO, rumoured mid-June. I sipped my tea, which had gone slightly cold. During the time I was thinking about SpaceX — is this going to be one of those moments, or is this going to be a sell-the-news kind of moment? — I felt that being stuck inside was not going to help me think about it. So I put on my rain jacket and headed outside. I went for a walk to see where my feet would find me, and, to no one’s surprise, I ended up at the local pub. As I walked in, the door made that familiar squeaking sound that turns the head of every local.

“About time!” cried a familiar voice from the bar as Gary Gourmet turned around, beaming with all three teeth.

I smiled and looked at the floor as I made to take off my coat.

“The regular then?” he asks me.

“Not today, Gary. Got a lot on my mind,” I say to him.

“Lot on your mind? What on earth could you be worried about?” he said, picking up his half-full pint and bringing it to his sweaty lips.

“You wouldn’t care if I told you anyway, Gary. Do you mind?” I say, in a half-baked attempt to lose his interest, picking up a packet of Knobby’s nuts.

“Try me,” he said, clapping his lips together, thoroughly enjoying his pint of Stella.

I sighed and looked at him, wondering if he’d actually understand anything I was about to say.

“Well, it’s about the SpaceX IPO,” I say, leaving a pregnant pause waiting for him to say that he hasn’t got a clue what I’m talking about. Instead he nods, as if to say go on. So I do.

“I’m just wondering if it’s going to be one of those things that people talk about in years to come, or is it going to be one of those moments that I deeply regret? If I buy now, what if it goes to the moon? If I leave it now and it goes to the moon, I’d be stuck on the sidelines waiting.”

I looked up at Gary Gourmet to see that his face had hardly changed.

“Do you know what I’m talking about, Gary?” I ask.

“Course I do,” said Gary. “Been keeping my eye on SpaceX for a long time,” he says, looking down to the bar, lifting up the dregs of his drink to his enormous mouth.

“I’ve got SpaceX on a hundred-x leverage!” shouts a voice from the snooker table behind.

“And that ain’t a surprise to anyone,” shouts Gary, as he turns around to see Sid — arguably the most degenerate trader I’ve ever met.

“Here’s the thing,” says Gary. “Do you believe in the business? As in — do you think it can grow, and what it’s doing now is effectively good?”

I look at him and stare. “Well, of course,” I say.

“Well, if that’s the case, you don’t need to put all your eggs in one basket.” He slams down his pint glass and clicks his fingers to the bar lady, asking for another.

Of course he’s right. DCA into the market. Why didn’t I think of this?

“You’re just going to be buying one bit at a time, Gary?” I asked.

“Of course I am,” says Gary. “In fact, I’ve already got pre-IPO exposure through some private-equity friends I know.”

I look at him in amazement. He looks back at me and laughs.

“These pints aren’t paying for themselves.”

“Any chance I can get in on that?”

“Do they offer leverage?” Sid shouts from the pool table.

“Absolutely not,” says Gary. “Besides — if you want to get in on SpaceX, there’s not long to wait.”

Maybe Gary’s right. Maybe he’s wrong. Maybe Sid’s right — who knows? All I know is this: if this goes in the direction that most people think it will, Elon Musk will be the world’s first trillionaire, and I might make an extra £30 on my initial £100 investment.

Folks, am I in? Probably. But probably not in the way you imagine. This is a trade not to be missed whether it goes up or down. But this, of course, is not financial advice. If you want real financial advice, talk to my friend Side Quest Sid.

Thanks for reading.

(This is not financial advice)

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