Why Investing In IPOs Is Not A Good Idea, Ep #6

Capitalist Investor

Capitalist Investor
Why Investing In IPOs Is Not A Good Idea, Ep #6
Mar 04, 2020 Episode 6
Mark Tepper


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Investing in IPOs is a hot topic because the companies in this category are typically in a very impressive growth curve. There’s lots of optimism and hope surrounding them. But there’s also a lot of hype. How are they performing? Are they over-valued in the market? You need to look at their management teams, their growth, and their valuation. In this episode, we take a deep-dive into IPOs and whether or not most are worth an investment. 

Outline of This Episode

  • [0:27] The hype surrounding IPOs is just that—hype.
  • [1:15] IPOs are boom or bust—speculative at best
  • [3:23] Valuation is the area where IPOs have issues
  • [4:45] The impact of the recession on the S&P 500
  • [7:49] Dealing with changing interest rates
  • [9:26] The decrease in publicly traded and increase in private capital assets
  • [10:39] Understanding IPO prices versus first trade price
  • [15:10] Peloton takes advantage of the high valuation of software companies
  • [18:10] Two takeaways to consider IF investing in an IPO

Resources & People Mentioned

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Send your questions and comments to us at info@SWPConnect.com

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