Initial Public Offering Headlines
A number of initial public offerings have been floated into the market in the last half of 2020. Many have asked me what exactly an IPO is.
In this audio update, I am providing information on what IPOs are and how companies seek to raise capital through this process. I think you’ll find this information helpful and educational.
As fundamental long-term investors, we are looking for companies that have demonstrated long-term cash flow that allow us to make judgments about their future business prospects. While this is a more conservative way to invest, we believe it is appropriate for investors seeking greater predictability in their portfolio strategy as they seek to meet financial planning goals. For this reason, IPO assets tend not to be positions we focus on for portfolios.
I hope this information on initial public offerings gives you some context as you read and listen to the news. Sometimes headlines can be misleading and it’s important to look below the surface and understand exactly what is happening regarding these positions.