Osprey
Recycles dryer sheets
- Joined
- Jul 28, 2016
- Messages
- 144
Below is an excerpt from the article
"The U.S. is becoming “de-equitized,” putting some of the best investing prospects out of the reach of ordinary Americans. The stock market once offered a way for average investors to buy into the fastest-growing companies, helping spread the nation’s wealth. Since the financial crisis, the equity market has become bifurcated, with a private option available to select investors and a public one that is more of a last resort for companies.
"The number of U.S.-listed companies has declined by more than 3,000 since peaking at 9,113 in 1997, according to the University of Chicago’s Center for Research in Security Prices. As of June, there were 5,734 such public companies, little more than in 1982, when the economy was less than half its current size. Meanwhile, the average public company’s valuation has ballooned.
....
"Retail investors haven’t had access to shares of some of the highest-value private companies, including Uber Technologies Inc., Airbnb and Snap Inc. Some of those shares have gone to clients of the wealth-management arms of large banks, typically wealthy individuals or families.
"If those private companies enter the public markets in coming years as expected, average investors may miss much of the kind of rapid growth achieved by nascent public companies a decade or two ago. Amazon.com Inc., which went public in 1994 valued at $440 million, is now worth about $358 billion."
I had wanted to invest in uber but saw that since it wasn't a public company one suggested way was to invest in Google which owns an interest in uber. Is anyone finding ways to participate in private companies or other investment vehicles besides the public markets?
There’s never enough time to do all the nothing you want.
Bill Watterson, Calvin and Hobbes
"The U.S. is becoming “de-equitized,” putting some of the best investing prospects out of the reach of ordinary Americans. The stock market once offered a way for average investors to buy into the fastest-growing companies, helping spread the nation’s wealth. Since the financial crisis, the equity market has become bifurcated, with a private option available to select investors and a public one that is more of a last resort for companies.
"The number of U.S.-listed companies has declined by more than 3,000 since peaking at 9,113 in 1997, according to the University of Chicago’s Center for Research in Security Prices. As of June, there were 5,734 such public companies, little more than in 1982, when the economy was less than half its current size. Meanwhile, the average public company’s valuation has ballooned.
....
"Retail investors haven’t had access to shares of some of the highest-value private companies, including Uber Technologies Inc., Airbnb and Snap Inc. Some of those shares have gone to clients of the wealth-management arms of large banks, typically wealthy individuals or families.
"If those private companies enter the public markets in coming years as expected, average investors may miss much of the kind of rapid growth achieved by nascent public companies a decade or two ago. Amazon.com Inc., which went public in 1994 valued at $440 million, is now worth about $358 billion."
I had wanted to invest in uber but saw that since it wasn't a public company one suggested way was to invest in Google which owns an interest in uber. Is anyone finding ways to participate in private companies or other investment vehicles besides the public markets?
There’s never enough time to do all the nothing you want.
Bill Watterson, Calvin and Hobbes
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