cross-posted from: https://piefed.world/c/tech/p/1160169/a-danish-pension-fund-has-blacklisted-spacex-calling-it-grossly-overvalued-with-catastro
AkademikerPension will not buy SpaceX shares at any price near the $1.8 trillion IPO target, saying the company cannot reasonably be worth more than $1 trillion and that Musk’s voting control makes it effectively uninvestable
That sounds like someone takes their fiduciary responsibility seriously. Good job.
Americans with 401k are about to get screwed when this IPOs. They’re wanting to change the index rules. That means every index will have to include this rotten piece of shit. Most 401ks would be affected.
The rule changes include changing how long after an IPO a stock can be included in an index fund Right now it’s a year. They want it to be weeks.Teachers PF won’t touch this IPO with a 12m pole.
I don’t know how the teachers funds work. But if they invest in index funds they’ll be affected.
Based.
The rule is quite simple: if Elon has something to do with it it is grossly overvalued. Europe’s pension funds are not stupid and have a long history of making stable gains on their investments, as they should.
are not stupid and have a long history of making stable gains on their investments, as they should.
Except the Danish government-mandated pension fund ATP that everyone is forced to contribute to. If you want to hit jackpot just invest opposite of what ATP is investing.
Why is it so bad? I don’t know about the exact situation, but 10.4% average yearly gain seems exactly like what a pension fund should do. Trying to hit the jackpot with people’s pensions is not a secure or sustainable way to deal with people’s pensions.
The last 8 years straight they’ve lost money though…
That appears to be fundamentally false.
Not when you look at their entire (investment) business. an article from the biggest danish financial paper outlines it (paywalled)
ATP is actually an insurance company masquerading as a pension fund: focus more on their guarantees, instead of getting optimal returns.
Their guaranties and payouts in their inaurance-branch are also horrendous and laughable, plagued by nonsensical coverage rules and ridiculous low rates.
Edit: and no, it’s not an insurance company masquerading as a pension fund, the areas are two entirely independent branches they have slowly been merged over time in the name of government efficiency (a.k.a. budget cuts). They also handle student financial support and basically all government financial aid programmes. But again, the cost of these things are entirely separate from the pension fund and how that is managed, it’s not the same pool of money.
Ah, yeah that sounds pretty bad
They’re all active on WallStreetBets…
This is unfortunately way too real. How a supposedly professionally managed fund can loose money when prretty much the entire market is trending upwards is almost impressive.
Me, looking around at every other company in existence: uhh… guys…
Theres overvalued with catastrophic governance, and then there’s everything Elon Musk is attached to. For example, Tesla is valued at 1.6 trillion - more than the next 29 car companies combined - and recently agreed an almost 1 trillion pay package which would be something like $130 000 per every Tesla ever sold.
It’s made up value so he can borrow against it. You dont pay taxes on borrowed money.
