In recent months, IPO investing has been getting a bit of attention as quite a few popular companies such as Airbnb and DoorDash entered the public market this year. We dedicated this episode to exploring what every investor should know about investing in initial public offerings. Throughout the episode, Grant reviews the process of going public, how the IPO markets have changed over the last few decades, and whether we should expect adequate returns from IPO investing.
[01:05] Basics of IPO Investing – What IPO investing is, why it has been in the news recently, and the process of going public.
[05:57] IPOs and Investment Banks – Investment banks play two crucial roles in the process of an initial public offering. Grant reviews what these roles are and how an investment bank interacts with different parties involved in the process.
[09:54] The Open Market – Stock price fluctuations that happen right after a company goes public and what investors should keep in mind about them.
[12:09] Recent Trends – How private funding and venture capital mechanisms have changed the way companies enter the open market over the last few decades and what it means for investors.
[16:47] Deciding Whether to Invest in IPOs – Grant shares his thoughts on what you should take into consideration when deciding whether to invest in IPOs.
[18:47] Brands and IPOs – How the popularity of a brand may drive the stock price of a company right after going public.
[21:43] Having IPOs in Your Portfolio – How the performance of your investment portfolio may be affected by investing in IPOs and tips for making smart decisions around IPO investing.
What Is an Initial Public Offering? :