I do not write about IPOs often. As far as I am concerned, there is only one privately traded company in the United States that would engender “must have” status if it became traded on the stock exchange, and that would be Mars Candy (the maker of M&M’s, Snickers, Twix, 3 Musketeers, and a handful of others). Out of all the IPOs in the only past generation or so, the only worthy of truly long-term holds that could not be bought through a similar proxy would be Google, Starbucks, and Visa. It’s not something that I think about all of that often, given the strong wisdom against IPO investing given by Jeremy Siegel and Benjamin Graham on the matter.
In the case of Siegel, the admonition against investing in IPOs is based on the numbers. Siegel argued on page 14 of his book The Future for Investors, “The … Read the rest of this article!