Should I Invest In SpaceX?

Summary

Podcast Summary: The Ramsey Show Highlights

Episode: Should I Invest In SpaceX?
Host: Dave Ramsey & Co-host (Financial Advisor)
Date: June 12, 2026

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Episode Overview

In this episode, a caller seeks advice from Dave Ramsey and a Ramsey Network financial advisor about investing in the newly-public SpaceX stock. The discussion centers on whether single-stock investing—particularly in a hyped, high-profile IPO like SpaceX—makes sense for individual investors, especially for those still building wealth. The hosts provide practical, grounded guidance rooted in their well-known investing philosophy, balancing honest encouragement with warnings about risk and volatility.

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Key Discussion Points & Insights

1. Caller’s Scenario and Question

• John, the caller, is debt-free, has grown children, an emergency fund, a steady income, and investments in traditional vehicles but wants to know if it’s wise to buy SpaceX stock now that the company has IPO’d.
• He is considering a modest investment (“maybe 10 shares, 100 shares…$1,600 to $5,000”) but doesn’t want to risk a significant portion of his wealth.
  (00:06–01:34)

2. SpaceX IPO Context and Initial Impressions

• Dave Ramsey provides context, noting the rapid rise in SpaceX’s stock price post-IPO and the excitement in the market.
  • “It opened at 150. The price is already over 160. Over 162 now per share.” — Dave Ramsey (00:44)
• The hosts acknowledge Elon Musk’s track record of innovation but recall the volatility associated with his ventures (reference to Dogecoin).
  • “This is the same guy we’re talking about…” — Dave Ramsey (01:57)

3. Ramsey Investing Philosophy

• The co-host reiterates the show’s general advice:
  • Prioritize “eating your vegetables” by consistently investing 15% of household income in diversified, tax-advantaged retirement accounts (401(k), Roth IRA) before speculating with single stocks.
    (03:31–04:34)
• The “kitchen table test”: Only put money at risk if you’d be emotionally and financially unbothered if you lost it all.
  • “If you put this $5,000 on the table and it burnt up in flames, would you survive? Would you be okay?” — Dave Ramsey (04:34)

4. Evaluating Net Worth and Investment Choices

• John’s net worth: Around $250,000 (including home equity), $200,000 in investments.
• The co-host says single-stock “play money” is more appropriate for multimillionaires; for John, who is still in the wealth-building phase, the focus should remain on diversification.
  • “I think you’re still building. And the truth is, over time, good growth stock mutual funds…they’re going to add SpaceX into their mix and you’re going to have a piece of that.” — Financial Advisor/Co-host (05:15)

5. Risks of Single-Stock Investing

• Single stocks are much more volatile than funds with 100+ companies.
• Most investors are better served by “boring” mutual funds, which will eventually include major companies like SpaceX as they’re added to indexes (like the S&P 500).
  • “The issue with single stocks is they’re just more volatile than a more diversified fund that has 90 to 200 companies in it. That’s a little more balanced.” — Dave Ramsey (06:35)
• Most should keep single-stock (or crypto/“play money”) investments at no more than 5–10% of their portfolio.
  • “If it’s volatile, it’s risky. You better know that you could lose all this money….make sure that this kind of stuff is no more than 5 to 10 percent of your total portfolio.” — Dave Ramsey (07:01)

6. Motivation & Mindset

• The co-host stresses motivation: “If you’re thinking at any point this is the thing that’s going to take my portfolio to the moon, then you need to take, you need to take a moment.” (06:44)
• The hosts sprinkle in playful space puns and caution against treating hype as investment strategy.

7. Personal Disclosure

• Dave Ramsey himself is not investing in SpaceX, despite his optimism about the company.
  • “I am not… buying single stock in that company as much as I’m rooting for it. I’m like, it could double and I could have so much regret. Or I could just keep doing what I’m doing. Invest in mutual funds and stay boring.” — Dave Ramsey (07:42)

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Notable Quotes & Memorable Moments

• “I had a good friend tell me she believed it is going to skyrocket, but how long it will is only time gonna tell.” — John, Caller (01:34)
• “We’re all hoping it does, but I also remember when Dogecoin was pushed by Elon on SNL and… it didn’t do what we thought it would do.” — Dave Ramsey (01:57)
• “If you put this $5,000 on the table and it burnt up in flames, would you survive? Would you be okay?” — Dave Ramsey (04:34)
• “So many space puns.” — Dave Ramsey (06:57)
• [Playful banter about the hosts’ reluctance to go to space and the joy of floating in a salt chamber] — (08:05–08:43)

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Timestamps for Important Segments

• 00:06–01:34 — Caller describes his situation and interest in SpaceX.
• 01:34–02:33 — Hosts discuss SpaceX’s IPO, Elon Musk’s track record, and investment skepticism.
• 03:07–04:34 — Breakdown of Ramsey-style investing discipline and why it matters.
• 04:34–05:15 — The kitchen table test: Risk tolerance and emotional resilience.
• 05:15–06:13 — Advice on diversification versus single-stock speculation.
• 06:35–07:01 — Risks of single stocks and the importance of portfolio balance.
• 07:01–08:43 — Philosophical notes, humor, personal disclosure by Ramsey, and closing thoughts.

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Closing Advice from the Hosts

• Prioritize diversification and consistent, long-term investing.
• Consider single stocks only as a small, “play money” portion—never as a strategy for building wealth.
• Ensure risky investments pass your personal “kitchen table test.” If losing the money would hurt, don’t do it.
• Remember: Boring investing (mutual funds, index funds) has built more wealth than betting on the next big thing.

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This episode delivers classic Ramsey wisdom, urging listeners to avoid hype and invest for the long term, sprinkled with humor and space-themed banter. The message: Stay the course with diversified, disciplined investing, and only take fliers if you can truly afford to lose.

Transcript

[Dave Ramsey]

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[Caller (John)]

I'm debt free. I have my emergency fund. I have a regular income that supports me. I'm single. Children are grown, live on their own. My question is, I would like to talk to someone about investing with this Elon Musk SpaceX. I have a little extra money. I'm thinking about investing. I do have investments, but they are through a company. It's not something that does personal investing. And I figured your show could guide me a little better.

[Dave Ramsey]

Sure. Okay, so for people watching or listening at home, as of the day we're doing this show, SpaceX has gone public, as they say, they IPO'd at it at the price of 135. It opened at 150. The price is already over 160. Over 162 now per share. And so you're saying I've got a little extra money. Should I buy this single stock in this company that I think is going to do well?

[Caller (John)]

Correct.

[Dave Ramsey]

How much money?

[Caller (John)]

Wait a minute. Y' all both said, oh, sorry, how

[Dave Ramsey]

much money are we talking? How much do you plan on buying?

[Caller (John)]

I wanted to go small, like maybe 10 shares, 100 shares.

[Dave Ramsey]

Okay, so that's 1600 bucks worth.

[Caller (John)]

I don't want to. I'm sorry.

[Dave Ramsey]

So about sixteen hundred dollars worth is what you're willing to put into this?

[Caller (John)]

Yeah. Or 5,000. Oh, I don't want to lose a lot. I had a good friend tell me she believed it is going to skyrocket, but how long it will is only time gonna tell.

[Financial Advisor/Co-host]

Well, I love the pun that you used. She told me it's gonna skyrocket. SpaceX. Get it? Yeah. Yes, I like that.

[Caller (John)]

Yes.

[Dave Ramsey]

Okay, well, I, I don't know if your friend is a fortune teller. I mean, we're all hoping it does, but I also remember when Dogecoin was pushed by Elon on snl and everybody thought, guys, everybody should buy Dogecoin right now. And it didn't do what we thought it would do. Now, that's a meme coin. Obviously very different from a company that's actually producing a good a product and service here. So I'm not going to put in that category, but this is the same guy we're talking about, so. And I'm a Tesla fan. I'm a. You know, I, I think Elon is really good at launching new innovative things. So it would not shock me if this stock doubled eventually.

[Financial Advisor/Co-host]

Yes, I'm sure it'll do just fine. But either way, I kind of want to give you a basis of our teaching around this so that you can understand why our advice will be what it is. If you called in and you told me, hey, I've been investing in mutual funds for the last 20 years. I've got, you know, over a million dollar net worth, blah, blah, blah, blah, blah. And I want to play a little bit and buy a couple of single stocks and spend 5,000. I wouldn't stop you from doing it. I think that you would have amassed the net worth to be able to do that. So if that's not your situation, we

[Caller (John)]

need to know it is.

[Financial Advisor/Co-host]

It is your situation. How much? What's your net worth?

[Caller (John)]

I talked with Corbridge of the day and around 200,000.

[Financial Advisor/Co-host]

Okay.

[Dave Ramsey]

How much of that is your investments?

[Caller (John)]

That's, that is your investment core bridge.

[Financial Advisor/Co-host]

So you've got 200,000 with that Roth.

[Caller (John)]

Yes.

[Financial Advisor/Co-host]

Great house.

[Caller (John)]

I have a Roth. It's just a little bit in that one. And then I have savings and checkings and, you know, I've spread it out. I don't want it all together.

[Financial Advisor/Co-host]

And it all equals $200,000 total.

[Caller (John)]

No, that's just the financial one.

[Financial Advisor/Co-host]

What's the total of your net worth?

[Caller (John)]

And that's just 250.

[Financial Advisor/Co-host]

Okay, $250,000.

[Dave Ramsey]

Do you have a home?

[Caller (John)]

Correct? Yes.

[Dave Ramsey]

Okay. Is there a mortgage on for. Paid for. Fantastic. Okay, so here's the general teaching. If you are sort of eating the vegetables first, you're investing 15% of your household income into tax advantaged retirement accounts like a 401k or IRA. Roth is even better. Then you can spend a little fun money on this kind of stuff because it's not a huge part of your world. So just imagine this. It's the Dave Ramsey calls it the sort of a, the kitchen table test. If you put five, this $5,000 on the table and, and it burnt up in flames, would you survive? Would you be okay?

[Caller (John)]

Yes.

[Dave Ramsey]

Okay. That tells me it could be a fun ride for you. Now, it may add some stress. You might see it go up, you might see it go down. And the truth is the US stock market has doubled about every seven years. So that 5,000 would turn into 10,000 if you just put it into an s and P500 index fund. So what you're really saying is, I think this is gonna do so much better than the s and P500 that it's worth it to lock this money up in this stock right now

[Caller (John)]

for how long?

[Financial Advisor/Co-host]

And see that, that, that's where we

[Dave Ramsey]

get into the question mark. Do you plan on getting out? Do you plan on just holding it forever?

[Caller (John)]

I'm thinking at least 10 years.

[Financial Advisor/Co-host]

So I can tell you what, what we teach is, if you're still building your net worth, which you are, you're not at a point where you could stop investing your 15% into mutual funds. We like diversification. We like investing money into mutual funds where there's a mix of 100 plus stocks inside of that one fund. So that you're not placing your eggs in one spaceship in this case. And I don't believe, I mean, you're asking me today, I wouldn't do it. I think you're better, your money is better spent going into mutual funds as you continue to build your net worth. And like I said, if you had called here and you're like, hey, I got $1 million. I'm doing really well. I just want to play with this money, I would say, you know what, you've been doing all the other things, right, Go ahead and do it. But I think you're still building. And the truth is, over time, like good growth stock mutual funds, aggressive funds, they're going to add space X into their mix and you're going to have a piece of that.

[Caller (John)]

I got you.

[Financial Advisor/Co-host]

Do you see what I'm saying?

[Dave Ramsey]

The company's worth its salt. It'll end up in the s and P500, and therefore your mutual funds and index funds would already own a piece of that.

[Financial Advisor/Co-host]

Exactly.

[Dave Ramsey]

Just in a more diversified action. So there's nothing wrong with what you're doing at your stage, but you want to just be thinking about the opportunity cost of where else could that money go? And will this add more stress to my life than it's going to add wealth or joy?

[Caller (John)]

Correct.

[Dave Ramsey]

That's the issue with single stocks, is they're just more volatile than a more diversified fund that has 90 to 200 companies in it. That's a little more balanced.

[Financial Advisor/Co-host]

I think also too, the motivation behind it. If it's just, this is so fun and I just want to play. But if you're thinking at any point this is the thing that's going to take my portfolio to the moon, then you need to take, you need to take a moment.

[Dave Ramsey]

So many space puns.

[Financial Advisor/Co-host]

I know, I can't help it.

[Dave Ramsey]

Well, you're fun to talk to, John. You keep on the path, stay out of debt, keep investing 15% of your income. And if you want to use some play money, and this applies to anything, guys, if you're Looking to invest in crypto or bitcoin, we would be saying the same exact thing. If it's volatile, it's risky. You better know that you could lose all this money. And you should be okay with that if you're willing to put this money into it and make sure that this kind of stuff is no more than 5 to 10% of your total portfolio.

[Financial Advisor/Co-host]

Yeah, I agree.

[Dave Ramsey]

Otherwise, too much concentration in that one thing.

[Financial Advisor/Co-host]

It feels like a baby step 6 activity in that I want to make sure I'm doing my 15% where it goes. I want to make sure I'm doing kids, college, putting a little extra on the mortgage. And then if I have some play money, that's fun, you know.

[Dave Ramsey]

And you know, I am not just to let everyone know I'm not investing in SpaceX. I'm not buying single stock in that company as much as I'm rooting for it. I'm like, it could double and I could have so much regret. Or I could just keep doing what I'm doing. Invest in mutual funds and stay boring.

[Financial Advisor/Co-host]

All right? You get a opportunity to go to the moon like Katy Perry and all those people do. Do you take it?

[Dave Ramsey]

No. I'm scared of heights. That's just really high up is all I'm saying, you know, And I don't. Here's the thing. I don't think my wife would let me because if something were to happen, you're in trouble. She would collect a very large life insurance policy.

[Financial Advisor/Co-host]

She'd be yelling at you from beyond the grave.

[Dave Ramsey]

Exactly. I would be. I would never hear the end of it. I'd be up there in heaven and she'd be yelling to the skies.

[Financial Advisor/Co-host]

It'd still get. It'd still make it through.

[Dave Ramsey]

And I'd hear the echoes. The angel would be like, who is that? Like, sorry, that's my wife. She's really mad that I went to

[Financial Advisor/Co-host]

space and never came.

[Dave Ramsey]

Never came back. I want to float. That's what I realized. Like, I want to be an astronaut growing up, but I realized I just want to float.

[Financial Advisor/Co-host]

Just get in one of those salt float chambers. You can't get the same thing.

[Dave Ramsey]

You can float in other ways. You don't have to go to space to do that. Create your free every dollar budget today. The simplest way to budget for your life.