Thank you for providing actual citations for important claims you make instead of just expecting us to take your word for everything. I wish more KZfaqrs did this.

IPO: First sale of a company’s stock by private owners who know everything about it to public buyers who knew nothing about it.🤷🏼‍♂️🤷🏼‍♂️🤷🏼‍♂️

IPO = It's Probably Overvalued

The fact that you used cited sources so the viewer can conduct further research, 5 stars.

I have been trading since last 5 years and have recently started investing in IPO's. Although this video could have been more comprehensive, it is still better than other IPO Intro videos on KZfaq !! Kudos to you man !

Can anyone improve on these presentations in terms of time, quality, details observations and conclusions as well as solid reference citings. Wow Ben. You are good!

very well done. I had never heard of the term "quid pro quo" untill 2019.

This is a great guide - very important to understand the process and the risk involved. In recent years, IPOs have been a great way to dump on retail who fall for the hype (particularly some of the tech stocks).

Thanks for sharing this informative video on IPO stocks investment. 👏 Last night, I was watching a pre-IPO stock investing video by Jeff Brown about a "5G device" as I wanted to learn more about diving in the IPO stocks release to the public. Now, after watching your video, I'll be very extra careful before I lose myself in IPO stocks. Thanks again.. 🤝

That is a great summary of how IPO's work, and why us little fish need not concern ourselves with them too much in terms of our portfolios. Thanks again for another great video!

I'm so glad I found you Professor.

Excellent as always, thanks Ben

As always, thank you for the terrific info! Presently, there's a lot of SPAC activity in the market. Perhaps a video on stock behavior post-merger between a SPAC and a private company?

Such a great video, thanks Ben. You keep coming up with topics that I wouldn't even think of asking for information about, and then there they are. Your videos provide so much value. I always look forward to what you're going to come up with next. So, in other words, you can only get in on an IPO (one that is likely to perform well on the first day of trading) if you're a member of the Princeton-Harvard-Yale suck-up-club. Great! So much for objectivity, or equal opportunity, in the markets. If I have one pet peeve, it's favouritism, in any facet of life. Grrr. Hey I have a request for a topic in a future video, I was wondering if you'd give it some thought. Thanks to you, I like investing in index funds, but I'm also of the belief, like Gerald Celente, that "If you can't touch it, you don't own it." Real estate, gold bullion, an old timer car that keeps up with inflation, you can touch all those things. Index funds like XEF, XIC, XUU have low MERs, and they grow over the long term at quite a bit better than inflation, and you get compound interest and that's all great, but I also have a feeling that the fine print somehow states that, in case of a banking crisis, the bank or the government can just take your money and call it a day. It's not like they haven't done it before. Matter of fact, it used to be literally written in Canada's Economic Action Plan (or at least in one of the versions that I read) that systemically important banks will be bailed out with tax payer money should they fail during a banking crisis, but my belief is that, in the next banking crisis, they won't be bailed out, they'll be bailed-in (with people's savings, like in Cyprus). If you haven't read Canada's Economic Action Plan, just have a look at it, it's a PDF that anyone can download from the internet. Mind you, they've been updating it every year and there are now many versions. I can't find the wording on "systemically important banks" anymore, but it used to be in there, I am positive about that. My question is, could you make a video about which funds have some kind of hedge or insurance policy that prevent this from happening? I mean, what are the safest banking assets to invest in, in terms of having our butts covered against the actions of banks during crises, and against the actions of desperate governments, like in 2008? Which index funds are insured by insurance companies that actually have assets (as you know, in 2008, many insurance companies that were supposed to insure people's funds, were actually also broke, and couldn't insure a dime)? Thanks for giving it some thought. It doesn't have to get into all these details, but it would be great to know which ones are the safest, even if they're not the cheapest in terms of MER. Sorry about the long comment, just wanted to clarify where I'm coming from.

Wonderful! What an excellent, crisp explanation, as always. Ben, if you would create a full video tutorial series for the CFA curriculum, you’d put Kaplan and all the other providers out of business immediately 😂

Wonderful content. Greetings from Colombia

Can you do a Videos about: -Momentum Factor - Multifactor Indexes (Msci Dmf for example) -Why having commodities ETC's in a portfolio is not so "smart" ;) -

Thank you

Check out the IPOs on the JSE and the performances.

Hey, Ben. I'd be curious about your thoughts on the so-called All Weather Portfilio as developed by Ray Dalio and Bridgewater Associates?

A good presentation, Ben. I heard that IPO means It's Probably Overpriced. :) I've seen T Rowe Price show some pre-IPO holdings in some of their mutual funds here in the US.

Great video. Thanks. So, I should, relative to the other factors, short funds that invest in IPOs after the first day of trading but not past the first two years and go long funds that do the opposite / filter out IPOs after the first day but not past the first two years. In other words, I should have greater exposure to performance improving factors and less exposure to performance decreasing factors when it comes to IPOs. Is this right?

Best to buy after the employee lockout ...

There is a regular stream of videos from permabears on the inevitability of hyperinflation. You should do a video on the likelihood/unlikelihood of hyperinflation.

Hey Ben, any thoughts on volatility timing strategy? One paper I suggest is "Volatility Managed Portfolios" by Muir and Moreira. Thanks!

I like how you used the term “successful”. 😂

You can get in via a ipo etf as an institution.

Great content as usual. How about a video on derivatives? Don't ever recall seeing one.

Hey Ben, your videos are really mind blowing!..I have drastically changed they way I viewed investing. Actually I used to have my savings actively managed for the last 20 years -with many bad experiences along the way. I always thought the problem was finding the right advisor. But with what I heard from you, I am going to switch to Vanguard Index Funds and do it on my own. I am close to retirement (~5 years) and based in the USA. Do you recommend putting all the money in the retirement index fund they recommend based on years to retirement, or would use a basket of index funds?

How do you invest in pre ipo’s?

It's funny how retail investors get all starry eyed around IPOs. It's almost hypnotic. Without fail, if there's a well known company about to IPO, someone in my friend group will ask me if I'm going to invest and my answer is always _never_ -- and neither should you, dear friend. The last person I know who ignored my advice invested in Snapchat. Luckily, he didn't put too much in, so he's not down in any sort of bank-breaking way, but the lesson is made more clear by your video, Ben. Unless, as a retail trader, you already have an in into the company, pre-IPO, don't invest in IPOs at all. Give the company some time to season before investing.

Hi Ben! You usually share a lot of papers in your videos, but at least for me they are a little hard to follow. I always end up blindly trusting the abstract or just dismissing the whole thesis out of precaution. Could you please make a video explaining the methodology of these articles? You are able to make knowledge very accesible to everyone. Thanks for your work!

Hi Ben, could you do a video about other common risk factors apart from the Fama-French 5 (such as the momentum factor)?

So I should not buy fresh IPOed company stocks?

Though not surprising, I do appreciate how you break down every topic so comprehensively Fyi your link to Rational Reminders is broken

I want to start a finance career but I don’t want to sell funds that I do not believe benefit my clients. What should I need todo in order to start a career where I sell funds that benefit my clients.

Hey Ben. Are leveraged ETFs worth looking into. Can you shine some light on these securities.

That's interesting. If I understand correctly, what this video suggests is that the optimal IPO strategy for fund managers is to participate in the IPOs and then immediately sell the stocks in the secondary market. Is that right?

So when you do a search for what the price of a share was during the ipo, is what being reported the initial allocation that you couldn't get, or the first day of trading? Because when I just looked up what a few recent ipos started at per share, and compare that to what it is trading for now, I figured I would have made quite a bit if I had got in. But after watching this video, I don't even know if that price is the price I thought it was (opening day of trading) or not?

I came from Canal do Holder Channel!

Ben, big fan of your work, have watched many many videos at this point. Just contacted both my brokers about this, do you think I can get any decent allocations with accounts that barely crack 1mm each? I have etrade platinum and IBKR pro (pretty standard but I have generated boatloads of commission for them) I am just a retail client but you mentioned they can sometimes help us out. Just not sure if I'm in the neighborhood where they would

Once again, fantastic video! I have a question: What is your opinion about leverage? 🙂

Hi Ben, the script of this video is missing. By mistake, you added it to the Home Country Bias video so that the script of the Home Country Bias video would need its transcript.

The standard deviation of the IPO portfolio is the real shocker, the annual returns are poor, the risk adjusted returns once we factor in std dev are appalling!

What if a company goes public via a SPAC? Does it make sense to buy stock warrants and then convert them into shares once the merger goes public? Is that the cheat code I’m understanding or am I off?

Thanks! If funds I want aren't offered on the ASX do you recommend trading on foreign exchanges?

UBER was a great IPO.. not.

ben can you do a video on whole life insurance?

What if you are an employee in the company which goes IPO and you have access to stock options? That would be pre-stock allocation, wouldn't you go for it?

Interesting to hear some research that had been done on IPO's that confirm my suspicion that they're not for me. Could you not profit from IPOs from owning private equity. Such as investing in a private equity investment trust (or via an ETF such as IPRV) though?

I'm surprised the evaluation of the business is not mentioned at all. For instance, uber does not make any profit, no wonder the stock is going down after IPO. But if the company is growing profits then even if IPO is overvalued, the stock price will continue to go up.

Why aren't IPO shares distributed based on an auction system? That seems like a more fair allocation and price discovery system

en español......o con subtitulos

Thanks Ben, for this video! More people should know about IPO's. They can be dangerous, but also very profitable 🔥👍

In Singapore, we do IPO allocation via balloting 😄

IPO lockup expirations have been shown to generate negative abnormal returns in the tradingwindow immediately surrounding the expiration date. The return pattern conflicts with basic efficient market hypotheses, which suggests the IPO shares should be priced with the expectation of future stock price decline. Source: www.fmaconferences.org/Boston/IPOLockupExpirationsAPersistentAnomalyofScaleFMA2017.pdf

I always thought it'd be a good strategy to put $1000 in like 100 IPOs over a few years and hold for 20 years and at least a couple should be the next Amazon or Google.... Maybe not such a good strategy after all

What is minimum amount that you can invest in an ipo in Canada?

We all know who didn’t read that paper @ 1:58 about quid pro quo.

I don't wanna share because i wanna keep this important knowledge to myself

My understanding on this is, don't waste your time with IPO's unless you have a cheat code to get in early and profit, but, since some people are making money in stocks, it is possible to still profit in the market, but outcomes are randomly calculated..thus my conclusion is: We are living in a simulation.

This videos perfectly fits what I am currently studying: I recently read about IPOs in "The intelligent Investor by Benjamin Graham" and subsequently came across a presentation of Prof. Jay R. Ritter (site.warrington.ufl.edu/ritter/ipo-data/), where he explains why IPOs are systematically underpriced. All of this information taken together will improve my investment approach. Thank you Ben!

I learnt a long time ago never to buy IPOs. It's bad enough I'm picking an individual stock, but now it's a company without any track record on the stock market. Lol, no thanks.

Ok so, you can just go ahead and make a “high betas and negative loading to value” video because my ears took it in and here’s the output: 🤔🤯

Am mew to finance and this all sounds loke a foreign language #finance literacy

You don´t blink enough man from 0:00 to 0:42 not once wtf

IPO = Is Probably Overpriced 😅😅

It seems to me, that one should consider investing in an IPO with (at least) $200k-300k (US) ready for it. Otherwise, "go back to sleep". Am I wrong?

Hi Ben. Love your channel. Watched all of your videos including the index fund bubble. Then i found this video talking about the same thing but from a different perspective i guess. Care to comment? Will a Recession Wipe Out ETF Liquidity? (w/ Hari Krishnan) kzfaq.info/get/bejne/grVzfLCettuqpoU.html Thanks and keep up the good work!

First !

When Money Managers have no active job they make youtube videos