Musk's Not a Trillionaire Anymore...But Really, Technically...He Never Was

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So, of course the SpaceX IPO fell like a rock. I've been in the stock market for decades, and this is just how IPOs go, which is why often, I don't play. They are always overhyped and, I think, overvalued, and the first few days after the initial offering the IPOs soar. And then they fall. Like a rock. Because people take profits. And because the REAL valuation makes itself known. IF you think a newly IPOed company has value, the time to invest is when the dust settles. This has proven to be true almost in every case. So, the biggest headlines are of course that the first trillionaire in history, Elon Musk, is no longer a trillionaire. I say, "Duh." If you've been in the stock market long enough, you know this is how it works. He will be a trillionaire again. It's just a matter of time. It just won't be today. SpaceX may be overvalued, but it's a tremendous company with tremendous potential. The other thing about these headlines is that they make it sound like Elon Musk is a guy with a trillion dollars, readily accessible...in the bank. No. It's all on paper. It's not liquid. Any more than my fortune is. It's not in the bank. It's on paper. I have major steps to liquidate assets. There are tax consequences. It's not like I can just make a withdrawal and have my money in a couple days. Remember when Musk wanted to buy X for $44 billion. His net worth was well over that. But he still needed investors. He still needed creditors. He couldn't just write a check and buy it. Because he didn't actually have the cash. He simply had the underlying assets. Most wealth is not held. It's locked. Could I call my broker tomorrow and get $100k? Sure. But would it be easy? No. Would it be without consequence? No. Sure, my portfolio and my bank accounts say it's there if I want it. But it's not like I have direct access to it. If I have $1 million in my pocket, it doesn't mean I have $1 million in my hand to spend any way I want to. It just means I have $1 million locked into assets that equal $1 million of value. Musk may be the richest man in the world. It doesn't mean he has access to his fortunes like you and I have access to our savings account.