David Gardner denies possibility of 100x returns from mega-cap companies
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View chart & analysis → - 1David Gardner agreed that it will be difficult to achieve 100x returns from mega-cap companies.
- 2He calculated that a 100x return on SpaceX would require a valuation of $175 trillion, based on SpaceX's $1.75 trillion valuation at its June IPO.
- 3He mentioned Amazon's $438 million valuation at its 1997 IPO and noted that valuation ceilings will rise as the global economy grows.
So what's the key point?
David Gardner said it is hard to make massive profits through very large companies. He explained this by calculating that SpaceX's value would need to reach $175 trillion.
Source The Motley Fool +1 · View original ↗
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