IPOs are often great investments, but not every IPO is fit for everyone. When a new start-up goes public a lot of enthusiastic investors line up, but not all are making the right decision.
This deck explores areas of stock market research and business understanding that one needs to take care of in order to be successful at IPO investing. It touches up investing in sectors and themes, social media analysis, future of technology, market dynamics, investing strategies and hiring investment managers.
Sectors are important. An IPO in a hot sector will likely outperform the market by quite a bit.
Are You Wired For IPO Investing
ARE YOU WIRED
What is your level of general
understanding of the market? Which way
is the S&P 500 headed?
IPOs follow the markets, of course, with a higher degree
of volatility. But when markets are hot anyway, lot of IPOs
happen. So how do you decide which ones to
participate in? Go on ...
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Understanding sectors is
An IPO in a hot sector will
likely outperform the market
by quite a bit.
KNOW SOME SECTORS WELL ENOUGH TO TAKE YOUR
Do you make it a point to
know the IPOing company
There’s enough data & social opinion about unlisted companies for
one to research them thoroughly. Right from their private investors
and founders’ social footprints to their growth trajectory. And then
there’s media – it often plays an important role in the success of
Image from Flickr
What’s your vision of the future! Flying
cars? Teleportation? Work from
anywhere? Genetically produced, but
Knowing WHY a sector is hot is probably more important than
knowing which sectors are hot. A single Coca Cola stock bought at
$40 in1919 is worth millions today.
Know the market dynamics! No. Not the stock
market. The consumer and/or enterprise
market that your investee company is
Hyper-competitive segments see companies under constant
pressure of eroding margins. This is alright for a private company
looking for exponential growth but is a death knell for public
companies and their stocks.
Is it a short-
term or a
We all like to
So, try to think like a
and see if you agree
with the business
the company seems to
be following. See if you
agree to these
Do you completely
depend on investment
It’s highly likely that your area of
knowledge and competence will
be different from that of your
Given that you need to invest
only in sectors and companies
you understand deeply, being
self-directed could be a safer!
PERSONALISING BIG DATA FOR ENHANCED
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