NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
I think the biggest factor in the unavailability of private deals to retail investors is the hassle factor. If I am a promoter, my goal is to fund my deal with a few large checks written by investors who will not turn into high-maintenance customers. The last thing I want to do is to sell to an army of tiny investors, some of whom are guaranteed to turn out to be clueless and crybababies. An important corollary here is that any deal being offered to the retail market is almost guaranteed to be stinky since if it was any good it would have been snapped up by the heavy hitters.
Yes. Hence, I have never bought any IPO. The companies may not be all bad, but way overvalued. If the price were good, they would not offer it to the laymen. It's not to say that there's no IPO that does not turn successful later, but the point is that one should not clamor after any IPO, any SPAC.
And even venture capitalists get burned with dumb deals like Theranos. Of course, there are more startups going under that we don't know about.
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