“Passive investing” is not the same as “buying anything at any price”. Index funds follow transparent rules and weights. If the company is overvalued, that overvaluation is set by the wider market, not just passive investors.

> If the company is overvalued, that overvaluation is set by the wider market, not just passive investors.

You probably also believe the markets are fully efficient and there is no insider trading ever.

Historically, it takes 6-12 months for the wider public market to determine the correct valuation.

That's why SpaceX, Anthropic, OpenAI are rushing to 15 days.

They know something bad will happen between 15 days and 6 months after IPO.

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