Does SpaceX Belong in Your Portfolio?

SpaceX's public debut may have dominated headlines, but the bigger question for investors remains: Does SpaceX belong in your portfolio? In this episode, Austin Wilson, Josh Robb, and Tony Hixon take a closer look at the company behind reusable rockets, Starlink, and ambitious plans for the future of space exploration. We discuss SpaceX's business model, growth potential, valuation, risks, and the challenges investors face when evaluating a private company. Thinking about buying some shares? Listen to this episode first! 

Check out the show notes, links, and more resources at thewealthmindsetshow.com/s2e40

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You're listening to The Wealth Mindset Show where Hixon Zuercher Capital Management's team of finance professionals, portfolio managers, and a life coach come together to tackle complex topics in finance and retirement planning so you don't have to. From investment strategies and wealth management to tax planning, retirement income, and aligning your money with your values and purpose, The Wealth Mindset Show offers the tools to thrive.

Austin Wilson:

All right. Hey, hey, hey, welcome to Wealth Mindset Show where the Hixon Zuercher team has conversations on managing wealth, navigating retirement, making smart decisions for a secure, meaningful future. I'm Austin Wilson, Chief Investment Officer at Hixon Zuercher Capital Management.

Josh Robb:

And I'm Josh Rob, Director of Wealth Management here at Hixon Zuercher Capital Management. Joining us today is our founder-

Tony Hixon:

There we go.

Josh Robb:

And-

Austin Wilson:

Fearless leader.

[0:45] - Motorcycle Trips, Sports, & The Graduation Decision

Josh Robb:

... fearless leader, the CEO, Tony Hixon here today to talk about a very important topic. But before we get there, a little bit of an update. I know the two of you have spent a little time traveling. Tony, would you like to tell us a little bit about yours?

Tony Hixon:

Yeah. So my wife and I agreed years ago that when our kids graduated high school, we would celebrate, and they could choose either a graduation party or a trip. You get the party, you get the money, you choose a trip, you get the memories and the photos and the experience. So my oldest chose the trip. We went to Costa Rica a couple years ago, and my forgotten middle child just graduated and she also chose a trip. So we just went to Greece to a couple islands over there, Santorini, Mykonos, et cetera. And I had a good time. We went on a Royal Caribbean cruise and had a great experience, and she took tons of pictures. And it's a beautiful part of God's creation. We're really honored and happy to go.

Josh Robb:

All right. Awesome. And Austin, you-

Austin Wilson:

Yeah. Not as exciting as Greece. I went to Georgia. Northern Georgia. My dad and I met my uncle and my cousin from Florida, and we met in the middle, which is about Georgia. And went for a motorcycle trip for four days and had a great time. Great roads, great food, great people. So we do it every year. That was the eighth year in a row. It's pretty amazing. Same poor dudes, same four bikes.

Josh Robb:

Yeah. And I just traveled from ball field to ball field.

Austin Wilson:

That's right.

Josh Robb:

Softball and baseball. And enjoying it though. We've had-

Austin Wilson:

You went all the way to Toledo and all the way to Tiffin.

Josh Robb:

I was all over the place. So yeah, it was great. Kids are having fun, good times. Got rained on, but that's normal for this time of year.

[2:20] - SpaceX Basics & Largest IPO in History

Austin Wilson:

So today-

Josh Robb:

Yes.

Austin Wilson:

... we're talking about something that everyone, I'm sure, has heard about because it's all over news, social media, it's all over everything. And that is SpaceX.

Tony Hixon:

I never heard of it. SpaceX.

Josh Robb:

What is it?

Tony Hixon:

Maybe I'm on the wrong episode.

Austin Wilson:

SPCX, I believe is the ticker. SpaceX finally went public. So SpaceX going public was a really monumental thing. Not only has it crushed a lot of records that we're going to talk a little bit about, but it just was hotly anticipated. It's another Elon Musk company, and Elon Musk, anything he touches has a lot of following to it. So what happened? Well, it went public on Friday the... It was Friday the-

Josh Robb:

12th.

Austin Wilson:

... 12th. It went public. And what's interesting is that there were four times as many people interested in buying it as there was shares available to buy. It was four times oversubscribed.

Josh Robb:

Yep. No, pause real quick. So when you talk about an IPO, let's back up just a tiny bit. So SpaceX is not a new company.

Austin Wilson:

Correct.

Josh Robb:

It's been there for a while. It's-

Austin Wilson:

Probably 10 years old.

Josh Robb:

... run privately. It's been owned by individuals and there is no shares that you could purchase.

Austin Wilson:

Not publicly. Correct.

Josh Robb:

And so an IPO is initial public offering, which means that going forward they are putting shares out on the market and people can trade them like they do all the other stuff. It's publicly traded.

Austin Wilson:

Correct.

Josh Robb:

And so the big news on that is to make that transition, you have to make your initial sell of shares. So you create however many shares you want based on valuation, all that fun stuff, and people buy them. Once they buy them, they can then sell them to others.

Austin Wilson:

It's just like any other stock at that point.

Josh Robb:

Secondary market stocks. So this initial public offering, like you talked about was in a sense oversold, there was more people that wanted them than were shares available.

Austin Wilson:

And one of the reasons for that is that SpaceX, so one of the big numbers is that it's trading at like $1.5 trillion market cap. Wow, that's freaking huge. I remember we didn't even have a trillion dollar company. Now there's like six. They're one of them, and they're one of them at like a week old.

Josh Robb:

Yeah, they're the newest.

Austin Wilson:

They were like a trillion dollars at the IPO. But what's interesting is that not all of that $1.5 trillion came available for sale. Some of the private holders are still holding their SpaceX shares. Elon Musk still being the largest shareholder. The entire company didn't go public. So not the entire 1.5 trillion was available for the market to digest, which is why there was more demand than there was supply. So actually, I think it went public at like $150 a share, and as of the timer of recording this, we already had jumped up 50% in four trading days. It was pretty incredible move. So the question that a lot of people are asking is, wow, this is really exciting. It feels like the '60s maybe, right? The space race, all this other stuff. Is this the next great thing? And the answer is maybe, I don't know.

We're going to talk about some reasons why it might be and why it might not be not, or why it might not be. But the interesting thing we need to talk about is how investors can just look at the situation and say, "Let's learn about it," because this is obviously new. It's new technology. It's a new company. Let's get our mind around... First of all, we just learned what happened going public and what all that really means, but we need to talk about what this means for these potential exciting opportunities like this because, guess what? There's a couple other big IPOs coming later this year. That would be OpenAI, so parent company of ChatGPT, and Anthropic, parent company of Claude. Some major AI players coming later that may have similar reactions, may not. The market has to digest a lot of that supply when it comes online.

[6:01] - Why Investors Are So Excited About SpaceX

Austin Wilson:

So SpaceX, that's what we're talking about today. So why are investors so excited? Well, like I said, this company's not new. It's been around for a little while now. While Tesla, Elon is the CEO, he's not the founder of Tesla, by the way. He joined a struggling small company. He founded SpaceX. This is Elon Musk's baby, and actually his net worth is now over a trillion dollars. I think it's like 1.3 or 1.5 trillion dollars.

Tony Hixon:

Crazy.

Josh Robb:

Yep.

Austin Wilson:

And that is mostly highly concentrated between Tesla and SpaceX. His holdings just are enormous in them. And actually, as of now, because we know the valuation of the company at any given moment, his SpaceX holdings are worth more than his Tesla holdings.

Josh Robb:

Oh, wow.

Tony Hixon:

Yeah.

Austin Wilson:

Which is pretty incredible.

Josh Robb:

Yeah.

Austin Wilson:

So why do people like SpaceX? Well, it's just because this company is transformative. It's doing new things that other companies have not done before. One of the things that's super interesting and has always been interesting about SpaceX is they've focused on lowering the cost of space. They've done this through reusable rockets because think about for 60, 70 years of going to space, these have been disposable. They've crashed to earth and burn up and we've been done. We're talking now about reusing rockets.

Josh Robb:

Now the shuttles you could reuse.

Austin Wilson:

Yes. They would land.

Josh Robb:

They would land and they could reuse those.

Austin Wilson:

But the rockets, they were gone.

Josh Robb:

But some of the parts that they used to get up there-

Austin Wilson:

They were gone.

Josh Robb:

... because the shuttle was attached to the rocket-

Austin Wilson:

Correct.

Josh Robb:

... to get out of the atmosphere, those are actually finding at least portions of it to reuse.

Austin Wilson:

Absolutely. So that's new. Another thing is that this company is highly influential with government contracts. And one of those government contracts is for the space program. So space program has a lot of government contracts. Some of the government contracts are for Starlink. So Starlink, if you've heard, if you live in the middle of nowhere, you may need internet. Everyone needs internet. And internet is hard to get in some very rural places. SpaceX's product, Starlink, is a little satellite, goes on your thing and it's not even that crazy expensive, and you get ridiculously fast internet.

Josh Robb:

Yeah, for what it is, because it used to be very slow-

Austin Wilson:

Absolutely.

Josh Robb:

... if you're using something that wasn't hardwired.

Austin Wilson:

So that would be another big thing that the government has contracts with and people can use there. Those are the things that people are excited about this. So this company already has a lot going for it. It's got a track record of innovation, a track record of execution. But another thing that's interesting is that this company is not just about space. So sure, they do space and that's really huge. But they're also an artificial intelligence company. XAI, so Twitter AI, that arm is now merged with SpaceX. It's pretty amazing. So it's an artificial intelligence company. They've got communications through Starlink. They've got defense contractor work through the government. A lot of infrastructure in addition to space. So that combination is checking a lot of boxes that are getting people really, really excited about something that's new. So I guess the question you might ask is, what makes this company different than other hotly anticipated IPOs?

Well, in this case, space is the differentiator between what's coming public this year and the big three that are coming up. So if you want space exposure, this is really the name of the game, but also you are in the demand theme of AI. So there's a couple things that get people really excited about what's going on here. And ultimately you have to decide, is SpaceX worth the hype? And that's something we're going to spend a lot of time talking about because this IPO has been hyped up for months leading up to it actually going public. And right afterwards, it's continued to be just as hyped. It's actually spends more time on NBC than NVIDIA, I feel like these days. And that's because it's new and exciting and that sells. But is it justified? And the answer, Josh, probably you would know best.

Josh Robb:

Yes, it depends. It really is on what are you trying to accomplish? Because when you ask about, is it justified? The multiple, which is how you value these companies-

Austin Wilson:

Is obscene.

Josh Robb:

... is very high.

Austin Wilson:

Well, and it doesn't generate a profit.

Josh Robb:

And that's the problem is-

Tony Hixon:

Nor does it generate much revenue. Last year, I think it brought in $18 billion of revenue.

Josh Robb:

Right.

Tony Hixon:

Four billion of that was Starlink and we got a $1.5 trillion valuation.

Austin Wilson:

And we're burning through money like crazy.

Tony Hixon:

Yeah. It's a nonprofit.

Josh Robb:

So the big question becomes, what are you actually investing in? And you just mentioned a bunch of things it does. You could do a lot of stuff, but if you can't make money doing those things, are you a business? And that's the big question at this stage is are they able to adjust that to be profitable? Now that's not new. I mean, you look at even Amazon and some of those startups as they're trying to either innovate or create a new space, a lot of times they run a loss for a little while. So it's not like this is the first time you've seen something like this. The question is though, are they able to make that transition and justify the price of what future things could hold?

Austin Wilson:

As with really most IPOs at this stage, especially in the technology area, this is very technology-focused. Most of these companies aren't yet profitable. That's not uncommon for a company. What is uncommon is how big the company is when it went public.

Josh Robb:

Yes. Yep.

Austin Wilson:

I actually heard the joke that's like the SpaceX, market cap greater than Meta, revenue, less than Macy's, right? Just to put that into perspective, which is an unbelievable way to put it. But you hit a good point, Josh, that you're buying this company today not based on what it does. You're buying this company today based on what it can do.

Tony Hixon:

Future hope.

Austin Wilson:

Yeah. It's future hope. And really that's what we do with all investing because we're not looking necessarily at what a company's doing today. We're trying to say what can it do for the next one, two, three, five, 10, 20, 30 years to get a value today. And that's how investing really works. It's all about the future. This is just all baking in some really, really aggressive growth estimates that have to happen for it to be semi-reasonable, right?

Josh Robb:

Have you ever felt overwhelmed by the complexities of managing your wealth? You're not alone. At Hixon Zuercher Capital Management, we specialize in helping affluent families and individuals navigate the complex challenges of managing their finances. Wealth management is all about combining thoughtful financial planning with active investment management to help you reach your goals. Our process is designed to guide you toward what truly matters because we believe wealth isn't the destination. It's a vehicle for something much more meaningful in your life. Achieving your dreams requires careful planning, smart decision making, and access to high quality investments. That's where we come in. We understand that complex financial situations call for deep expertise in investing, tax strategies, and retirement planning, but our approach goes beyond that. We integrate your financial goals with your core values, helping you visualize the possibilities your wealth can create for a secure future.

If you're ready to take the next step, visit hzcapital.com/start to see if we'd fit in to your needs and to schedule a call with us. Again, that's hzcapital.com/start. Now let's get back to today's episode.

[13:04] - The "FOMO" Effect

Austin Wilson:

Another thing that's happening with SpaceX in terms of being public now is FOMO, right? This is a FOMO trade, fear of missing out, F-O-M-O. I don't want to miss it, right? A lot of people are looking at SpaceX and going, "Oh my goodness, this reminds me of when Amazon, like you mentioned, went public. When NVIDIA went public, when Tesla went public." And what happened since then? All those have turned out to be some pretty good investments. They've been volatile as I'll get out in a lot of ways, especially early on. But since then, oh wow. Some great growth.

Tony Hixon:

But I think the valuation at the moment of them going public was a lot more reasonable than this one.

Austin Wilson:

Absolutely.

Tony Hixon:

So it's apples and oranges type scenario in that Amazon went public, they were a very mature business, profitable at that moment.

Josh Robb:

And you're looking at, you just listed four of them. Those are the ones that succeeded. How many also have gone public and they didn't? So again, that's the thing a lot of people do is they have winners bias in that they only look at the ones that did well, but there was how many others that had a IPO and then didn't fulfill the expectations that were set for them. So yeah, there's always that fear of missing out. The idea here though is understand what you're investing in and the probability that they'll actually achieve the goals that they're setting or the expectations the market is putting on them.

Austin Wilson:

Absolutely.

Tony Hixon:

I think too the other major risk to talk about in this scenario is key man risk. So the whole company really depends on the space between Elon Musk's ears, right? Using his mind to come up with this. If he were to transition out or whatever word you want to substitute in there, this also makes the valuation of that company even more unreasonable based on the amount of key man risk that's going on with Elon himself.

Austin Wilson:

Yeah, absolutely. Probably more than any other company-

Tony Hixon:

More than any other company.

[14:54] - The Bull Case: What Could Go Right?

Austin Wilson:

... ever, probably. So let's talk about potential upside, the bull case, and then we could talk about potential downside, which would be the bear case. So the bull case, maybe there are reasons why people are optimistic, right? There could be actual truth to what is so exciting, right? The potential opportunity of the space economy, we don't really know what it is, but it could be as big as-

Tony Hixon:

How much money can you make on space?

Austin Wilson:

Yeah. It could be as big as anything, right? Starlink though is continuing to expand globally. It's growing, and that is actually a profitable part of their business. It's just not offsetting the rest of it. Their spaceship launch costs continue to decline. So this is something that's only going to become more profitable over time as well. Governments are increasingly reliant on their satellites. There's potential infrastructure for data centers in space. That's something that's been talked about. We could talk about solar panels in space. There's all kinds of opportunities there. So there is a lot of super interesting things that could happen and could go right, or even if a couple of those went right, that all of a sudden makes this seem a little bit more reasonable.

But you have to ask yourself key questions when you're saying, "I'm bullish on SpaceX," is how large can the space economy really become? Because do we really have demand to sustain space investment forever? Do we have need for it? We've gotten this far as humanity and really haven't done much with it and we've done okay, right? So how much of a benefit for humanity can that be? At what cost? The other one, Starlink, that's their baby, right? That's actually doing okay for them. Could that become critical global infrastructure? Is this something that can roll out to just beyond the rural people in the middle of the countryside who need internet to more... Yeah, maybe this is in big cities, maybe this is in airports. It's already on some airplanes, which is kind of cool. Mobile internet is pretty cool.

Josh Robb:

By the way, one of the ball fields I play at has a Starlink-

Austin Wilson:

Do they?

Josh Robb:

... for our coaches because you have no cell reception when you're out there. So they added a Starlink so the concession stand can use credit card transactions.

Tony Hixon:

There we go.

Josh Robb:

And then all the coaches can jump on to do their game changer and update the scores and stuff. So it's cool to watch.

Austin Wilson:

What Starlink tells me is that there is no excuse to not have high speed internet in 2026.

Josh Robb:

Yeah.

Tony Hixon:

I believe it.

Austin Wilson:

It's like a hundred bucks a month and $500 upfront or something like that and it's really, really good and it's nice. So there you go. Buy some Starlink if you don't have it. The other thing is these people who are bullish on SpaceX continue to have to think, like we talked about, beyond current rockets and satellite to integration of AI, integration of AI with space, and what all of this can become in the future. Again, looking forward, not what it is today. So theoretically, the bull case for Starlink is that this company could become one of the most important infrastructure and communications companies in the world. So that's the bull side.

Tony Hixon:

Did you mention data centers?

Austin Wilson:

Yeah.

Tony Hixon:

Yeah. In space.

Josh Robb:

Data centers in space.

Austin Wilson:

Floating around.

Josh Robb:

Yes.

Tony Hixon:

Got it.

Josh Robb:

Which I don't get. I think it's crazy.

Austin Wilson:

It's one of the things that data centers... So data centers are more in demand than they ever have been. Artificial intelligence drives a lot of need for data processing. So we're investing in data centers all around the world.

Tony Hixon:

And they're very controversial.

Austin Wilson:

They're very controversial.

Josh Robb:

People don't like them around.

Tony Hixon:

To put them on land.

Austin Wilson:

They take a lot of space.

Tony Hixon:

Yeah. Water. Cooling.

Austin Wilson:

They take a lot of water. They take a lot of energy. They have cooling problems. So one of Musk's ideas is what if we put them in space, because we solve a couple of our problems.

Tony Hixon:

Yeah. There's no clouds.

Austin Wilson:

There's no clouds. We can get great solar. And we're closer to sun. So great solar power and it's really cool. So we don't have any cooling problems as long as you can transmit data effectively.

Josh Robb:

Can you imagine though server has a problem and you guys send somebody up to reset?

Austin Wilson:

That sounds expensive. Yeah.

Josh Robb:

Unplug and plug it back in.

Austin Wilson:

Just unplug-

Josh Robb:

That's what they have to do.

Austin Wilson:

... for 10 seconds and plug it back in.

Josh Robb:

Count to 30, then come back.

[18:34] - The Bear Case: What Could Go Wrong?

Austin Wilson:

Yep. So those are the reasons that we could have some optimism about this company. Let's get realistic and say there's also a potential downside. We have to consider that as well. So the bear case, what could go wrong? Obviously this sounds pretty risky, right? One of the biggest challenges this company has, as Tony mentioned, is valuation. It's obscenely valued by any metric ever conceived. Again, because you're not buying it for today, you're buying it for what it may be in the future. We don't really know that.

Tony Hixon:

Unprofitable company generating hardly any revenue.

Austin Wilson:

Yeah. And another thing to think about, and this is true not just for this, but true for other investments as well is just because a company is great, maybe this company's great, does not mean it's a great stock to own, does not mean it's a great investment. Things can be a crazy expensive, overvalued, and not good investments, however, be something that is critical to your life and you use it every day and it's a great company. Those are not always the same. This could be that example too. It actually could be a great company, but it could be too hyped. So the question might be, at today's price, are we really paying a little too much for the growth that may or may not happen? So the expectations that we need to keep in check of right now are this growth that they're talking about that we have seen needs to continue and probably accelerate.

Execution among Musk and his entire team must be very strong. They really can't have missteps at this valuation. If they get competition, think about companies like, I don't know, Blue Origin. Who's the other one? Virgin Galactic, right? Those are a couple of them. If those actually gain some traction, I mean, then they might be considering it considering what valuations are for this company. They could say, "Well, why..."

Josh Robb:

Get some cash.

Austin Wilson:

Yeah, "I can totally issue some shares and at a better valuation than I'm getting right now." So if competition increases, that could be bad. And investors, if it just becomes out of favor, that obviously can send stocks down. So any disappointment can lead to a lot of volatility there. So just a lot of risk, a lot of growth expectations. But what we need to do is talk about what this means for long-term investing because this really isn't just about SpaceX. This is about how we respond to exciting opportunities. And there's exciting opportunities every corner. Right now, it's space and AI, but it was the internet and it was telecom and it was da, da, da, da, da.

Tony Hixon:

Yeah.

Austin Wilson:

Tulips.

Tony Hixon:

Railroads.

Austin Wilson:

Railroads.

Josh Robb:

We talked about those in a long episode.

Austin Wilson:

Absolutely.

Josh Robb:

For the investor, and that's the question is, should I own it? How much should I own? And those are questions that you're really going to have to talk to your financial advisor about to see your unique situation. But broadly speaking, eventually you may own some of this anyways as it's integrated into maybe the S&P 500. So if you own an index or something, as this company stabilizes, it may be added into any kind of index. And if you track an index, you're going to own it as well. If you own a broad market fund, this may show up in there. So you may actually indirectly own it over time, naturally. If you want to buy individually, the biggest question is, how much? And I always say, and this is something we've talked about in other episodes, when there's a high risk like this where there's a lot of uncertainty around it, you got to be careful not to overinvest and put more than you're willing to risk.

If you lose it all, what will that do to your overall outlook and your financial goals? This is one of those where you got to be careful about overexposing. Just because everybody's excited about it doesn't mean you should risk your long-term financial future just to participate in it.

Austin Wilson:

Yeah.

Josh Robb:

So if you're thinking about investing, not saying you should or you shouldn't, but be careful about how much you put into it because again, there's so much volatility and unknown here, it's very concentrated and that can be a problem.

[22:11] - Lessons for Long-Term Investors

Austin Wilson:

So I guess you need to think of broader questions to ask when you're looking at investments. So think about in the past, we talked about some examples of other great IPOs that have turned out to be fantastic investments. The biggest one that comes to mind is NVIDIA. When it went public, which was like 30 years ago now, but it was teen, teeny, teeny little guy, it's turned out to be pretty good for anyone who got in pretty early. And again, there have been issues where... There have been things where other companies didn't do well, but there are great opportunities from new companies that go public that can create enormous wealth. And you know what? I bet the fundamentals of NVIDIA didn't look like they do today. They're probably not near as cashflow generative and profitable and all these other things.

So great new, exciting opportunities can create tremendous wealth over time, but overpaying for those great opportunities in crazy valuations, and I would say this is a crazy valuation example, can, does not always have to because if the fundamentals catch up, all bets are off, but it can lead to disappointing returns in the future. That's just like looking at... This is just markets 101. When markets are more expensive relative to history, returns are probably a little bit lower. Well, when companies get more expensive relative to history or their peers, returns can often disappoint as well. It's not always the case, but it can be. So just some things to be concerned about here.

And so as someone who manages money, Tony and I manage our portfolios here, you might ask, "What are you guys doing about this?" The answer is we're watching it because it's certainly in the news.

Tony Hixon:

Sure.

Austin Wilson:

There's a lot of uncertainties and there's a lot of reasons why we don't necessarily think it fits what we're doing, but that doesn't mean it's not right for everyone to have a little bit of a piece of if they want. And like you said, it's going to slowly be introduced really over the first couple of weeks and then even the first handful of months into some of the major indices, not at its current waiting as terms of market cap because not all the shares are available for trading, but at a much smaller rate. But my opinion, okay, this is all my opinion-

Josh Robb:

This is Austin's opinion.

Austin Wilson:

... I'm not buying SpaceX.

Josh Robb:

Okay.

Austin Wilson:

It is a bit stretched in terms of what expectations need to happen to make it be a good investment for me without taking on too much risk.

Josh Robb:

There you go.

Austin Wilson:

That being said, it is very exciting. I want to watch it. I want to understand it. Hey, someday that company could be generating cash like NVIDIA is, and then all of a sudden I might get pretty excited about it.

Josh Robb:

Right. If we were still doing our portfolio competition with pretend money-

Austin Wilson:

You could buy it.

Josh Robb:

... I might be interested.

Austin Wilson:

Yeah, that's right.

Tony Hixon:

Yeah, because ultimately Austin and I, we're entrusted to prudently steward wealth that we didn't earn.

Austin Wilson:

Right.

Tony Hixon:

Right. Our clients worked hard for that and they're trusting us to steward it on their behalf. And so by our valuation metrics, this investment doesn't seem to check the prudent box.

Austin Wilson:

That's right.

Tony Hixon:

It checks some boxes.

Austin Wilson:

Exciting box.

Tony Hixon:

Exciting box. A potential, keep-it-a-low-part-of-your-overall-wealth box, but as far as inclusion into our client portfolios, we're taking a backseat, wait and see.

Austin Wilson:

Yeah.

Tony Hixon:

These publicly traded companies have to report earnings quarterly and these guys don't have earnings. And so every quarter they're going to have to face up to shareholders and tell them, convince them to stay invested or buy more shares, and we're just going to sit back and watch the story unfold. And if it becomes compelling enough to check that prudent box, we will include that on our client portfolios.

Austin Wilson:

The other wild card is the lockup period. We didn't even talk about this, right?

Tony Hixon:

Six months, right?

Austin Wilson:

So six months from when IPO has happened to forward six months, this would be another, this would be talking December now is when a lot of the insiders who still have shares are then available to sell their shares into the public. What this does and has done in the past with not all but some companies has created significant volatility around that time because if a bunch of new shares become available, the market has to soak up that supply.

Josh Robb:

Supply and demand.

Austin Wilson:

That's supply and demand, and therefore there is often some weakness around that. So that is going to be something to watch or it could go the other way and more shares come on and there's more than enough demand for it. So it all depends right now. But Josh, what are your thoughts, closing thoughts, opinions?

Josh Robb:

It's always fun to watch. I love seeing innovation and new technologies, right? Just this idea, our kids, my kids, we watch the space ship go around the moon and come back. In two years is going to land on the moon.

Tony Hixon:

Artemis.

Josh Robb:

Artemis. Yeah. I mean, there's so much fun to this, right? So the cool thing is this is a company participating in something that's exciting. So it is cool to watch. But again, when it comes to financial planning, the slow, steady approach wins the race in the long run. And that is what we teach our clients and that is what we do.

Austin Wilson:

Absolutely.

Josh Robb:

That's where I land on this.

Austin Wilson:

Well, thanks Tony for joining us. Josh-

Tony Hixon:

Thanks for having me.

Austin Wilson:

... good chat. If you guys found value in our conversation, don't forget to subscribe to The Wealth Mindset Show on whatever podcast platform you're listening to. That way you don't miss any episodes when they drop. Also visit us at thewealthmindsetshow.com for more resources, for show notes, for all those things, or if you're ready to check out what we do at Hixon Zuercher Capital Management, visit hzcapital.com, and check us out on social media. We'd love to connect with you on that. Otherwise, we'll catch up next episode. Have a good one. Talk to you later.

Tony Hixon:

Bye.

Josh Robb:

Bye.

Thank you for joining us at The Wealth Mindset Show, where we tackle the complexities of finance and life planning to help you align your wealth with your values. We hope today's conversation provided value and clarity as you navigate your financial journey. Your hosts work for Hixon Zuercher Capital Management and all opinions expressed by them or any podcast guests are solely their own and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions and the securities discussed in this podcast. There is no guarantee that statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment, and any investor attempting to mimic index performance would incur fees and expenses that could reduce returns.

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