Rigged game

IPOs and IPOs! One after the other. Between 2021 and 2022, we witnessed more than a 100 of them.

But there were no signs of them when the markets tanked. Now, when the market is reaching new peaks, they are out again like worms after the rains.

This in itself shows how much rigged the IPOs are against an individual retail investor. The price of the IPOs are not set by the market but by the company and their bankers. They set the price that is best for them. But we cannot blame the company for that. Instead, we can be cautious and not invest in those prices. That is the only way to secure ourselves from these IPOs.

There are times like this. Despite so much work, our conviction doesn't turn out to be right. But it's okay. No one, not even Warren Buffett has succeeded in all their investments.

Sometimes, our investments may fail because we haven't spent enough time analysing the company. A blunder!

Markets are rising finally and Twitter gurus are back. Nature is healing...or failing?

You may think DCF is the best valuation method until you come across a high-growth high-capex company with no free cash flow. Should you ignore it because of negative FCF or invest because it's a high-growth company? Dilemma.

Has happened to many of us at least once. No doubt there. The question is to remain invested or book profits?

Low fee, no research, and decent returns. Maybe index investing really is the best.

A company that has been shunned by many investors because of its convoluted past is making the news again. Will the run continue?

This article was originally published on July 07, 2023.