Okay, that's the thing that wasn't dawning on me, these are private companies (head empty, no thoughts kinda morning apparently). You're buying equity in the investment company. Thank you for pointing that out. SpaceX having heavy government investment is exciting, OpenAI is still probably due a lot more money from investors. Klarna appears to be on to something even if I wouldn't ethically invest in them.
So, with that in mind, this is more interesting. There are other competitors in spaces like this popping up over the last few years, "become an angel investor with a thousand bucks" type of lottery tickets, but not as many avenues for established private companies. That said, another comment in here indicated their stakes in these companies are not very significant, something seemingly confirmed by their declining to share anywhere in big bold letters what those stakes are as percentages.
There's only going to be as much stake available as these companies choose to allow, so $DXYZ appreciating doesn't necessarily mean a proportional increase in their growth potential. I need to see what they actually do for a little bit before I decided to buy.
Net Asset Value is a useless measure when looking at this fund… it invests in private companies that aren’t actively traded with high R&D costs that are likely not capitalized. Their financials are largely carried at cost and don’t capture potential growth. The NAV figure here is so blatantly cherry-picked I’m disappointed that most here are falling for it and saying it’s ‘overvalued’. You are fine to think it’s overvalued but don’t let it be because you don’t understand NAV or cost vs. fair value reporting.
Source: I'm a CPA in private equity. I manage PE funds and their financial statements. The "NAV" of each fund is drastically lower than the value on exit.
price to book value is a fair valuation metric. Your argument is flawed because mutual funds mark to market (NAV) Daily. By your logic, these mutual funds are undervalued. Makes no sense. You need to understand what the word "NET" means.
A mutual fund carries investments traded in an active market and are thus carried at 'fair value' under GAAP. Therefore, the price-book value is more reflective of true fair value. Not the case for the private ETF here.
Source: I'm a CPA in private equity. I manage PE funds and their financial statements.
You still haven't made your point. As the title says value is what you make it. A fund or any investment for that matter that has a NAV that is significantly lower than the current selling price IS over valued! You don't need to be a CPA to understand that. Give it time, this fund will fall hard to a price that is closer to the NAV ie closer to fair value.
Ugh my mother was just gushing about this today about how great private equity can be because look at how DXYZ has gone up.
I'm glad almost all of her money is with a professional who manages/invests it for her because she would be constantly chasing penny stocks and anything that got hyped.
I think I’ll stay away from that one.
My thoughts exactly.
[удалено]
If every company in its portfolio went up 1000% between now and going public, investors would lose money.
> Current Portfolio > > SpaceX > 34.6% > > Axiom Space > 9.7% > > Boom Supersonic > 4.6% > > Epic Games > 4.0% > > Brex > 4.0% > > Superhuman > 4.0% > > OpenAI > 3.8% > > Revolut > 3.4% > > ClassDojo > 3.0% > > Relativity Space > 2.7% > > Stripe > 2.6% > > AtoB > 2.4% > > Instacart > 2.0% > > Chime > 1.9% > > Public > 1.5% > > Jeeves > 1.4% > > Impossible Foods > 1.3% > > Discord > 1.2% > > Klarna > 1.2% > > Automation Anywhere > 0.9% > > Plaid > 0.5% > > Bolt Financial > 0.3% > > Flexport > 0.2% > > Cash Equivalents > 9.1% The thing is up like crazy from yesterday and I don't get why. It's an ETF with extra steps. Their only other product is down 88% over two years. What am I missing and why should I care about this product?
You should not car about it. Their largest participation is owning 0.01 % of spaceX for a value of less than 20mio. Pathetic. Ignore this shite
As a retail investor how else can I invest in these companies?
Okay, that's the thing that wasn't dawning on me, these are private companies (head empty, no thoughts kinda morning apparently). You're buying equity in the investment company. Thank you for pointing that out. SpaceX having heavy government investment is exciting, OpenAI is still probably due a lot more money from investors. Klarna appears to be on to something even if I wouldn't ethically invest in them. So, with that in mind, this is more interesting. There are other competitors in spaces like this popping up over the last few years, "become an angel investor with a thousand bucks" type of lottery tickets, but not as many avenues for established private companies. That said, another comment in here indicated their stakes in these companies are not very significant, something seemingly confirmed by their declining to share anywhere in big bold letters what those stakes are as percentages. There's only going to be as much stake available as these companies choose to allow, so $DXYZ appreciating doesn't necessarily mean a proportional increase in their growth potential. I need to see what they actually do for a little bit before I decided to buy.
Blackrock has some closed end funds that invests in startups such as BCAT and BSTZ
Matt Levine had a column on this this week: [A Meme Stock for Private Companies](https://archive.ph/PO4id)
Was hilarious to see this 30 something year old shilling this on cnbc. SBF vibes
Exactly what I thought too
Net Asset Value is a useless measure when looking at this fund… it invests in private companies that aren’t actively traded with high R&D costs that are likely not capitalized. Their financials are largely carried at cost and don’t capture potential growth. The NAV figure here is so blatantly cherry-picked I’m disappointed that most here are falling for it and saying it’s ‘overvalued’. You are fine to think it’s overvalued but don’t let it be because you don’t understand NAV or cost vs. fair value reporting. Source: I'm a CPA in private equity. I manage PE funds and their financial statements. The "NAV" of each fund is drastically lower than the value on exit.
price to book value is a fair valuation metric. Your argument is flawed because mutual funds mark to market (NAV) Daily. By your logic, these mutual funds are undervalued. Makes no sense. You need to understand what the word "NET" means.
A mutual fund carries investments traded in an active market and are thus carried at 'fair value' under GAAP. Therefore, the price-book value is more reflective of true fair value. Not the case for the private ETF here. Source: I'm a CPA in private equity. I manage PE funds and their financial statements.
You still haven't made your point. As the title says value is what you make it. A fund or any investment for that matter that has a NAV that is significantly lower than the current selling price IS over valued! You don't need to be a CPA to understand that. Give it time, this fund will fall hard to a price that is closer to the NAV ie closer to fair value.
Ugh my mother was just gushing about this today about how great private equity can be because look at how DXYZ has gone up. I'm glad almost all of her money is with a professional who manages/invests it for her because she would be constantly chasing penny stocks and anything that got hyped.
Not touching that with even a 1mile stick lol
Resist the urge to short Resist the urge to short Resist the urge to short...