Billionaire Jeremy Grantham Says He Will Invest When SPCX Drops to Par Value of $0.10

As a co-founder of GMO, Jeremy Grantham is known for his long-standing warnings about bubbles, having accurately identified tech and real estate bubbles in the past. His threshold of $0.10 for SpaceX continues his extremely cautious value investment approach.

In terms of capital strategy, Grantham avoids high-valuation AI and aerospace themes, focusing resources on traditionally undervalued assets, motivated by the desire to avoid historic bubble risks. Strategically, he adheres to a long-term compounding logic of "survivors rather than stock gods."

Similar to his bearish stance before the 2000 internet bubble and the 2008 crisis, the current market is at a turning point where high valuations in AI and aerospace are being tested against actual performance.

Structural Judgment
This essentially involves a transfer of pricing power. The gap between high-growth narratives and actual profitability is driven by the unlocking of lock-up periods post-IPO and delayed earnings, prompting capital to shift from pure story-driven investments to cash flow validation, redefining reasonable valuation anchors for aerospace and AI companies.

ABAB News · Law of Cognition

1. A par value of $0.10 is the entry signal for value investors.
2. Wall Street has only survivors, not eternally correct stock gods.
3. When bubbles burst, age and experience often prove clearer than narratives.