As unicorns like WeWork and Uber test the IPO market with disastrous results, America's biggest wealth manager for the ultrarich shares his best strategies for investing in unproven giants
That's how Peter Mallouk handles investing in newly public companies for his clients. The founder and president of Creative Planning, Mallouk manages $40 billion in wealth for clients with anywhere from $500,000 to more than $100 million in assets. Barron's also named him theIf one of his clients is intrigued by a new stock like Uber, Lyft, or Peloton, he tells them to wait a year so they can learn more about the company's business.
Companies are required by law to disclose far more information about their businesses once they file for an IPO and go public, while standards for private companies are much lower. Mallouk says some investors take brutal advantage of this, which makes it essentially a stroke of luck that the public didn't lose a lot of money"It's also an example of the crap that Wall Street will dump on the American public," he said.
"You want the stock to go through some public scrutiny," he said. "We can usually invest at a lower price and having a much better understanding of what the company is about once it's had to go through a few quarterly calls and we see what the insiders do.", which will almost always drive the stock price down for a time. How much they sell can be an important indicator of how much confidence people with the most knowledge have in the stock.
That's certainly been the case this year, even though the poor performance of several unicorn IPOs has caused some alarm.That list of concerns might create the impression that Mallouk wouldn't invest in a company that's losing money, or that he steers clear of the private market. He says that's not the case, and he's not opposed to putting a client's money in a company that's unprofitable as long as it has a path to making money in the future.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Saudi Aramco’s IPO Prospectus Doesn’t Reveal How Much It Plans to SellSaudi Arabia moved a step closer toward listing its national oil giant Aramco on its domestic exchange, releasing the preliminary prospectus late Saturday. Still key details that investors are focused on were missing.
Leer más »
Saudi Aramco prospectus flags risks, gives few details on IPO sizeSaudi state oil giant Aramco will sell 0.5% of its shares to individual retail i...
Leer más »
Saudi Aramco releases details about IPO set to begin on November 17Reza Amanat of Argus Media says there's still a lot of political risk associated with the Aramco IPO.
Leer más »
Saudi Aramco targets sale of 0.5% of oil firm to retail investors in IPO: sourcesSaudi Aramco is looking to sell up to 0.5% of the state oil giant to retail inve...
Leer más »
Saudi Aramco prospectus flags risks, gives few details on IPO sizeSaudi state oil giant Aramco will sell 0.5% of its shares to individual retail i...
Leer más »
Factbox: IPO prospectus lays out main risks to Aramco's operationsSaudi state oil giant Aramco unveiled the prospectus for its initial public offe...
Leer más »