What Ryan Braun’s Season-Ending Suspension Can Teach Us About Personal Finance

For those of you that follow baseball, you may have caught wind of the recent news that Milwaukee Brewers Ryan Braun recently received a season-ending suspension (65 games) for his link to the Biogenesis Lab that violated league policy concerning performance-enhancing substances (as of my writing this on July 23rd, 2013, the specific details regarding dosages has not been publicly disclosed). But what is noteworthy about Braun’s case is that it yet again proves the trope “it’s not the crime that causes the biggest headache, rather, it’s the cover-up).

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Originally posted 2013-07-24 06:35:22.

The Uber IPO’s High Risk

Jeremy Siegel’s research into initial public offerings, which found that IPOs underperform the market by four percentage points annually during the five-year stretch following the IPO, speaks to the elevated valuations and hype that occur at the time of the offering. Most notably, Warren Buffett’s 1990s talk to Florida MBA students mentioned that Coca-Cola IPO’d in 1919 at a price of $40 per share, and then fell by over 50% to $19 per share the next year. For your own research, pull up the stock performance history of companies that have had an IPO at some point over the past decade and you will typically see the price droop in the years following the IPO.

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