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🍔 Warren Buffett’s Rule → 🚀 Space Stocks

Posted October 09, 2026

Davis Wilson

By Davis Wilson

🍔 Warren Buffett’s Rule → 🚀 Space Stocks

Warren Buffett once asked investors a seemingly ridiculous question.

"If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef?"

Lower prices, of course.

If you're going to keep buying hamburgers, you want them to be as cheap as possible.

Buffett then asked a similar question about buying cars.

“Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices?”

Again, the answer was obvious.

Nobody walks into a car dealership hoping the price of their favorite car has gone up 30%.

But then Buffett posed a third question.

“Now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?”
“Many investors get this one wrong,” he added.

Most investors would say higher.

After all, isn't that the whole point of investing?

But Buffett saw things differently.

He explained that investors often celebrate rising stock prices even when they're still buying, effectively cheering for their future purchases to become more expensive.

"Prospective purchasers should much prefer sinking prices," he said.

It sounds obvious when we're talking about hamburgers and cars.

But the moment stocks enter the conversation, our brains seem to work backwards.

We get excited when prices rise and nervous when prices fall.

And we become most interested in buying stocks after everyone else has already driven prices higher.

I mention this because an entire industry of stocks – that I frequently talk about here in The Million Mission – are on sale right now.

Space Stocks Hit New Lows

Think back to the months leading up to the SpaceX IPO.

Space stocks were the hottest investments on Wall Street.

Rocket Lab (RKLB), AST SpaceMobile (ASTS), Intuitive Machines (LUNR), and practically every other company connected to the space economy was ripping higher.

Then SpaceX went public.

The excitement faded.

And space stocks began giving back those enormous gains.

Now, just a few months later, many of these companies are trading well below their recent highs.

You can see the runups in May/June, right before the SpaceX IPO, in the charts below:

Rocket Lab (RKLB) 1-Year Chart

AST SpaceMobile (ASTS) 1-Year Chart

Intuitive Machines (LUNR) 1-Year Chart

Redwire (RDW) 1-Year Chart

Most space stocks are now flat or even negative on the year.

But here's how I'm thinking about the opportunity.

The SpaceX IPO was a short-term event. The commercialization of space is a long-term trend.

Investors spent months bidding up space stocks in anticipation of one event.

Now that the event has passed, much of that speculative excitement has disappeared.

But the demand for satellite communications, launch services, space infrastructure, and national security technology isn't going away.

In fact, it will continue growing for decades.

Which is why I'm paying such close attention to this selloff.

I want to own companies positioned to benefit from the growth of the space economy over the next 10 or 20 years.

And if the stock market wants to sell me those companies at lower prices because investors have temporarily lost interest?

I'm happy to take advantage.

Or as Warren Buffett would say
 The hamburgers are on sale.

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