Should You Get in on the Next Big IPO?

Stay Wealthy Retirement Podcast

Taylor Schulte, CFP®

Financialplanning, Retirement, Money, Taxplanning, Stocks, Wealth, Business, Investing, Retirementplanning

2.4 • 606 Ratings

🗓️ 28 May 2019

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

Uber and Lyft are two big companies that made a huge splash with their IPOs recently, but it remains to be seen whether either will become profitable.

Both have posted billions in losses so far and it doesn’t seem like that will change any time soon.

With that in mind, it makes you wonder why so many investors pay tons of money to invest in IPOs as soon as they can. I mean, what’s the big deal?

In today’s show, I’m going to dive into this topic and provide some academic data that sheds light on IPOs.

Once you know more about them and how they’ve performed historically, you may come to see IPOs for what they are — an exciting event that will more than likely cost you money if you get involved.

Show Notes & Links: www.youstaywealthy.com/45

DISCLAIMER: This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. This podcast is not engaged in rendering legal, financial, or other professional services.

Transcript

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0:00.0	Welcome to the Stay Wealthy podcast.
0:12.4	I'm your host, Taylor Schulte, and today we are talking about the wonderful world of IPOs, also known as initial public offerings.
0:20.7	But first, I want to quickly thank everyone for all the kind messages and feedback I've
0:26.0	received over the last few weeks.
0:28.2	There are over 700,000 podcasts in iTunes with business podcasts just like this one being
0:34.8	the second most popular genre.
0:36.6	And I learned from a listener this week
0:38.8	that we recently cracked the top 200 in iTunes, which is just crazy to me. This podcast is,
0:46.2	as you guys know, a labor of love. And it just feels good to see my hard work pay off and just get
0:51.2	some recognition and know that people are finding this information helpful and valuable. So thank you for the support. Keep the questions and messages and feedback
0:59.8	coming. I read and respond to every email, even the one that said, Taylor, you don't know what
1:06.0	you're talking about and you should shut this podcast down. Even that one. I even responded to that email.
1:10.2	So please keep the messages coming and thank you again for all the support. Even that one. I even responded to that email. So please keep the
1:11.5	messages coming and thank you again for all the support. Okay, with that out of the way, by now you have
1:16.6	likely caught wind of the Uber and Lyft IPOs. If not, the short story is that these two companies
1:23.3	were private for a really long time, meaning the general public, you and me, could not invest in
1:30.2	them. And now they're publicly traded, which means anyone and everyone can own a piece of these
1:36.6	companies. Uber in particular was initially funded by a venture capital firm called Benchmark,
1:44.0	and Benchmark is a very well-known VC firm who has
1:47.2	previously funded companies that we all know by name, companies like Twitter, Dropbox, Zillow, and a
1:53.7	bunch more. Uber was also funded by a mutual fund firm called Fidelity Investments. So they took on private money, private investments
2:03.1	in the beginning, same with Lyft, same with a lot of these companies to help get them off the ground.
	...

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