Benjamin Graham argued that a long-term investor will almost never participate in an initial public offering (IPO) because the animal spirits that are triggered by the IPO will almost never coincide with sensible pricing. Warren Buffett elaborated on this concept by saying that, if there are over ten thousand publicly traded companies in the world, the odds that the best deal out of any of them is the company going public is extremely slim. I think he went even further and said that he has never before invested in an initial public offering on behalf of Berkshire Hathaway.

I have been close attention to Luckin Coffee, the Chinese-based coffee startup that is opening up about 100 new stores across China per month. It is anticipated that it could become the most significant rival to Starbucks because it is rapidly expanding in a country with 1.3 billion people it is currently … Read the rest of this article!