Every so often, an investment opportunity captures the attention of investors around the world. This year, that opportunity is SpaceX.
The company has become synonymous with innovation, transforming the economics of space launch, building what is currently the world’s largest satellite network, and pursuing ambitious initiatives that extend far beyond its original mission. For many investors, SpaceX represents the type of business that seems to define an era.
The excitement surrounding the IPO is understandable. Opportunities to invest in transformative companies at the point they become publicly traded are relatively uncommon, and opportunities of this scale are rarer still. As we speak with clients about SpaceX, however, we find ourselves returning to a broader message that extends far beyond any single investment: that access matters, but access alone is not enough.
The value of access…
The path from startup to public company looks very different today than it did a generation ago. In the past, emerging businesses tended to go public relatively early in their growth cycles. Today, companies can raise substantial amounts of capital privately, allowing them to scale for years before ever considering a public offering. As a result, some of the most exciting investment opportunities may not be available to every investor. For investors with significant assets, having access to these opportunities can be valuable.
At LCM, we spend considerable time evaluating where innovation is creating long-term value and determining how our clients can participate appropriately. Sometimes that means investing through established market leaders. Sometimes it means exploring alternative opportunities. And occasionally, it means gaining access to a highly anticipated offering like SpaceX.
The SpaceX IPO is an example of how relationships, platform capabilities, and institutional access can create opportunities that many investors would otherwise struggle to obtain. For eligible clients who expressed interest, we were able to provide access to the offering.
That access is meaningful. But, in SpaceX terms, we’re just off the launch pad.
Even great companies require great discipline…
Warren Buffett famously said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Those words of wisdom can be useful when evaluating opportunities like SpaceX.
SpaceX, of course, is no ordinary company. Its leadership in launch services, satellite communications, and emerging technologies set SpaceX apart from any other business in the aerospace industry—or perhaps in any sector. It’s notable that while SpaceX booked $18.7 billion in revenue last year, the company still posted a net loss of $4.9 billion in 2025. Innovative, yes. Profitable, no. At least not yet. That reality points to the fact that even when a company is exceptional in many ways, wise investors know to take a step back from the thrill of the investment itself and look closely at the factors that matter most over the long term: valuation, expectations, and how the investment fits within their overall portfolio.
Now that some of our clients are invested in SpaceX, some of our most important work begins. Moving forward, we will be focused not on launches and media coverage, but on the same key factors we use to evaluate any company in our portfolios: quality, management, growth, and valuation.
Buckle your spacesuit…
If there’s one thing investors should expect from SpaceX, it’s that the ride may not be smooth. The sheer size of the offering (the largest in history, raising $75 billion at an unheard of $1.77 trillion valuation), the level of public interest (for space lovers and investors alike), and the enthusiasm of individual investors all point to the potential for increased volatility.
That should come as no surprise. Periods of volatility often follow an IPO as investors attempt to determine an appropriate valuation. Excitement, uncertainty, and changing expectations can all drive price swings—which may be dramatic at times. Investors should be prepared for the possibility of significant short-term price swings. Even then, they should keep their seatbelts tightly fastened.
That said, we believe it is important to distinguish between volatility and risk. Volatility is movement. Risk is the possibility that an investment will fail to achieve its intended objective. The two are not always the same. A stock can be highly volatile and still create meaningful long-term value. A stock can also appear to be stable but present substantial risks beneath the surface. Our role is not to focus on day-to-day price movements, but to continually evaluate whether the factors that made an investment attractive in the first place remain intact.
Looking beyond the headlines…
Our responsibility as fiduciaries—and our mission as a firm—is not to chase every headline or every new idea. It is to identify opportunities that fit within our disciplined investment process and help our clients pursue their long-term goals. The attention surrounding SpaceX will eventually fade. Another company will emerge. Another innovation will capture the imagination of investors. That cycle is unlikely to change.
What remains constant is our process.
Successful investing has never been about finding one ‘perfect’ stock, but about combining thoughtful planning with disciplined portfolio construction, and gaining access to attractive opportunities when they become available.
We believe access to opportunities like SpaceX can be valuable. But access delivers the greatest benefit when paired with experience, disciplined research, and a long-term perspective. In the end, the goal isn’t to own every exciting investment opportunity. It’s to make thoughtful decisions that support the life you want to live and the legacy you want to create.
