Warren Buffett Would Never Buy the SpaceX IPO. Here's What He'd Do Instead.
The legendary investor preached the value of buying good companies at reasonable prices.
Warren Buffett Would Never Buy the SpaceX IPO. Here's What He'd Do Instead.
Overview
The countdown commences. SpaceX is going public as soon as tomorrow, and it's likely to be the most hyped initial public offering (IPO) of all time. The rocket company has captured the imaginations and enthusiasm of investors worldwide. One investor that won't likely be boarding the rocket ship anytime soon is the famed Oracle of Omaha, Warren Buffett.
SpaceX plans to offer its stock at $135 per share, valuing it at $1.77 trillion. That stratospheric price likely sent shivers down the 95-year-old's spine. Let's talk about how the world's greatest investor might view this unique public offering.
Details
The famed investor and former chief executive officer of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) is equally known for his ability to pick winning companies as for knowing when to stay away. While SpaceX has captured the imagination of investors globally, the company's financials are what truly matter. They are the core reason Buffett almost certainly will sit this one out.
Source
Originally published at www.fool.com.
