Excerpt from MarketWatch, published May 14, 2019
Should I invest in what I know?
“For IPOs, you’re flying blind.” Eric Walters, the managing partner and founder at SilverCrest Wealth Planning in Greenwood Village, Colo., advises waiting one year. Of course, some IPOs take off. Facebook’s stock has soared in the seven years its been a public company and Beyond Meat BYND, -1.66% shares have increased 240% since the company’s IPO earlier this month.
Is this a good time to invest in the company?
Likewise, Walters said the first year is typically tough for companies that are fresh to the financial markets. “Historically, most IPOs do poorly in their first 12 months because of the significant selling pressure from corporate insiders, venture capital, and private equity investors who are looking to liquidate their illiquid holdings,” he said.