Every time I talk to my friends about IPO stocks, I am a little puzzled. Those who have read some investment books or are followers of Warren Buffett will know that IPOs are definitely not to be touched. Because every IPO is launched at the best time in terms of performance (so it is already in the past tense). Then, in order to attract the public to buy, both the company and the Banks will advertise vigorously, set very optimistic Target Prices, and have high exposure in newspapers.
Why put in so much effort? Of course, it is to sell at the most perfect price. If you buy at the most perfect price, where will we make a profit? Are we desperately buying IPOs just for that 20-30% on the first day? Of course, some people invest millions, and 30% is already satisfying enough.
But I am an ordinary person, where do I have so much capital? So I often oppose buying IPOs, Autocount, Mr DIY, Farm Fresh, Speedmart... I always tell my friends that I am not interested.
As a result, on the day of these Stock IPOs, friends were all happy, but I was thinking to myself, oh no, here we go again. So when it comes to investing in Stocks, it's best not to speak carelessly, as causing harm while making little profit is truly a heinous crime. However, after a while, those Stocks dropped again, and they started doubting themselves once more. Every Stock will have its honeymoon period when it first goes public, but once it cools down, it all comes down to performance.
If you keep track of the company and their performance is decent, then of course you can take advantage of the pullback to add more; but if you hesitate, you might have to rethink whether your initial Buy was just to profit from the IPO. If you've already made a profit, then you can call it a day. Otherwise, sticking around...