Here’s a story that’s part entertainment, part lesson.
It comes from two cracking charts the team at Equity Mates put together, and side by side they capture just about everything you need to know about investing.
First, the rocket. SpaceX’s recent sharemarket float was the biggest in history – at listing it was valued at around US$1.75 trillion. To put that in perspective, that’s roughly the same as every other listed aerospace company in America combined – Boeing, Lockheed Martin, RTX, GE Aerospace, Honeywell, Northrop Grumman, the lot.
One company worth as much as the entire rest of the industry. In the three days after listing it added another US$910 billion on top.
And then gravity did its thing.
This week SpaceX shares fell more than 16 per cent in a single session – their steepest drop since debut – as part of a sharp pullback that wiped out hundreds of billions in value, after the company announced it was raising debt to fund its artificial-intelligence ambitions. (For all the drama, the shares are still above their float price – but ouch.)
Now the tortoise
The second chart laid out Warren Buffett’s ten longest-held stocks, and the holding periods are measured in decades: Coca-Cola 34 years, American Express 29, Moody’s 22.
The standout fact? Buffett’s Coca-Cola shares now pay him more in dividends every single year than he originally paid to buy them. He didn’t get rich by trading in and out of the hottest thing going around. He got rich by buying good businesses and sitting on his hands for thirty-odd years.
What we can learn
The investment tales remind me of Australia’s property story, just with a rocket attached.
The headlines belong to the hype – but the wealth, more often than not, belongs to the patient. Whether it’s a house held for nine years or a Coke share held for thirty-four, time in the market beats timing the market almost every time.
Real wealth is usually built quietly and slowly – in bricks and mortar you’ve owned for years, or in shares you’ve held through thick and thin.
The exciting, fast-money headlines make for great television, but they’re rarely where ordinary people actually get ahead.
Do the boring things well – be patient, don’t rush your tax return, get proper advice – and your money will mostly look after itself.
