Beyond the IPO

Last week, I attended a wealth symposium in Washington, D.C. and one of the more interesting takeaways had little to do with stock prices, interest rates, or election forecasts.

During discussions featuring former Federal Reserve Chair and Treasury Secretary Janet Yellen, Democratic strategist James Carville, and Republican strategist Karl Rove, a common theme kept emerging. Despite their different backgrounds and perspectives, all three spoke about the resilience of the American people, the strength of our economy, and the unique ability of this country to innovate and create opportunity.

As I listened, I couldn’t help but think about one of the biggest investment stories capturing headlines today: the growing space economy.

By the time you read this, the initial excitement surrounding the highly anticipated SpaceX IPO may already be behind us. Whether the stock’s debut exceeded expectations, disappointed investors, or landed somewhere in between is ultimately less important than the broader story unfolding around it.

Because the real opportunity isn’t one company. It’s the ecosystem. For decades, space exploration was largely the domain of governments. Today, it is becoming a commercial industry touching everything from communications and navigation to defense, weather forecasting, logistics, mapping, and global connectivity. Satellites help power many of the services we use every day, often without us even realizing it.

In many ways, the commercialization of space represents what America has always done best. We identify a challenge, develop new technologies, attract investment, and build industries that once seemed unimaginable. Now that doesn’t mean every company associated with the theme will succeed. History teaches us otherwise.

The railroad boom created tremendous wealth, but not every railroad prospered. The internet transformed the world, but many early internet companies disappeared. Innovation creates opportunity, but it also creates winners and losers. That’s why we believe investors should be careful not to confuse excitement with strategy.

When a major IPO arrives, it’s natural to feel a sense of urgency. Headlines are everywhere. Friends are talking about it. Financial media covers every twist and turn. It can feel like an opportunity that must be acted upon immediately. Yet some of the most successful long-term investors understand a simple truth: not every opportunity requires immediate action.

We’re not opposed to owning innovative companies directly when the fit is right. For certain investors, a company like SpaceX may eventually deserve a place within a diversified portfolio. But that decision should be driven by a thoughtful investment plan, not by enthusiasm surrounding a single event. The better question isn’t, “How do I get in?” The better question is, “How does this fit?”

For some investors, exposure may come through direct ownership. Others may gain exposure through diversified funds, infrastructure providers, communications businesses, defense contractors, or companies supplying the technology that supports the broader ecosystem. Each approach comes with its own risks, opportunities, and tradeoffs. What matters most is understanding the role the investment serves within the portfolio.

Near the end of the symposium, Karl Rove shared the story of his great-grandfather, who immigrated to the United States as a teenager with little more than determination and the hope of building a better life. Over time, he built a successful career, raised a family, and embraced the opportunities this country provided. My brief mention of his family origin story hardly even does it justice. He had almost every person in the building tearing up with raw emotion, me included. You had to have been there.

The story stayed with me because it wasn’t really about politics. It was about possibility.

The space economy captures some of that same spirit. Not because rockets are exciting, although they certainly are, but because it reflects something deeper. It reflects the willingness to tackle difficult problems, invest in big ideas, and build things that once seemed impossible.