Billionaire Jeremy Grantham Says He Will Invest When SPCX Drops to Par Value of $0.10
Billionaire Jeremy Grantham stated that he will invest when SPCX drops to a par value of $0.10. Currently, SpaceX has fallen about 48%, trading below its $135 IPO price.
Market Observation
Grantham referred to SpaceX as "the craziest IPO in history" and predicted a high probability of collapse.
Market Mechanism
With the decline in SpaceX's stock price, value investors are looking for low-entry opportunities. This event reinforces the bubble narrative, putting short-term pressure on growth funds, while benefiting short sellers and contrarian strategies.
Source: Public Information
ABAB AI Insight
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
- A par value of $0.10 is the entry signal for value investors.
- Wall Street has only survivors, not eternally correct stock gods.
- When bubbles burst, age and experience often prove clearer than narratives.