IPO Duds

[vbin]

(11-20-2020, 02:01 PM)fenders53 Wrote:

(11-20-2020, 01:35 PM)vbin Wrote: NIO: I invested in it, pulled out when I recobered my money. Who knew it will fly like this. So a dud might not stay dud. Never the less IPOs are more risky.

PLTR: I invested in PLTR purely becouse I believe they have an advantage based on their business model and what they have to offer.

UBER: I bought based on reasons I don't want to disclose and I was lucky to not loose money and make some money. And I am out of it now mostly.

Other IPOs that I am looking at: Databricks, this is going to fly of it doesn't go the snowflake route. Airbnb, robinhood.

In a hindsight,  I  missed out on multiple baggers by not buying the IPOs just becouse they were expensive even though I beleived in the tech and business.

It's human nature to remember the big fish that got away. IPOs are in fact risky.  How many beating did you miss by not buying?  I intend to start investing in more of them.  AIRB is on my list.  So here is my IPO plan.

1. The narrative has to be good, and LASTING.  Is a future MOAT even a possibility?  I thought Uber was a joke at the price. BYND was a novel idea I thought.  But you can't patent fake meat.  If it gets popular you won't gouge MCD for long.  Valuations are tough to calculate initially for a disruptive new tech, but in the end valuation will matter.  If you pay 500% the IPO price you are probably just MOMO gambling.

2.  If you pick a decent IPO the share price will pop.  Take some of your investment off the table if you get the opportunity and invest in another IPO.  There will be more losers than winners over time.  Far more.  But what if you accidentally sell off half your AAPL or AMZN IPO?   Such is life, you still made so much money it doesn't even matter if you left half of it on the table.      

I need to buy more IPOs. 

I missed more than I want to remember and this is despite being in the middle of the action and knowing that these companies will do well. Simply becouse of valuation. Need to change that nerrative and not be a dear stairing in headlights. Going to put money in companies I believe and close my eyes. Those are the 3 names I have on my list as of now. PayTM in India is another one which is going to be a rocketship but no way yet for me to invest there.