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SpaceX is going public at a 93x revenue multiple. No P/E ratio. Negative earnings. And there is no shortage of buyers.
Benjamin Graham is rolling in his grave.
Graham wrote The Intelligent Investor in 1949. The framework made sense for that world. You could walk into a factory, count the inventory, audit the cash flows, and price the business with confidence. The assets were physical. The math was grounded in something you could touch.
That world is mostly gone
Nvidia trades at 35x revenue. Palantir hit 100x at its peak. Neither company has a single warehouse. Their competitive moats aren't measured in equipment or real estate. They're measured in switching costs, proprietary data, and government contracts no competitor can replicate.
If you're not sure whether your portfolio was built for this economy or the last one, you can grab 20 minutes on my calendar and we'll go through where your money actually sits and what it's positioned for.
Overbought is not the same as overvalued
When people look at SpaceX at 93x revenue and call it insane, they're using a ruler that wasn't built for this measurement. A price can look stretched against today's earnings and still be reasonable against where the business is going in ten years. Graham's framework wasn't designed to price growth trajectories in industries that didn't exist when he was writing.
That doesn't mean you throw out risk management. It means your framework has to match the economy you're actually in.
You need future solutions to current problems
The people who built real wealth in the last two decades weren't running Graham screeners looking for low P/E ratios and high dividend yields. They understood that the economy runs on software now. On recurring revenue. On companies that scale without adding a single square foot of floor space.
That's how we approach investing for clients. Not anchored to old philosophy. Building portfolios around the economy that actually exists right now, and where it's heading over the next decade.
The Intelligent Investor is still worth reading. Understand what Graham was doing and why it worked. Just don't mistake it for a current map.
If you want to see how we build portfolios for clients like you, reply to this email with "portfolio" and I'll walk you through the framework we use.
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