How to Pick the Next Amazon

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How to Pick the Next Amazon

(San Francisco)

With all the news of Amazon's 20th anniversary return ($100 of shares at IPO would be worth almost $64,000 now), many might be looking for the next big IPO to buy. However, caution is demanded during the IPO process, as historically speaking, things do not usually go very well for those who buy right near an IPO. However, if you are keen to do so, this piece gives three tips for how to go about it. Firstly, be clear about why you are buying, and why now. Secondly, be very clear about your risk tolerance. And thirdly, stick to your plan, buying and selling at pre-determined prices and suiting the investment to your overall financial goals.

FINSUM : Buying at IPO can be dangerous, especially in the short-term, but over the long haul it can immensely profitable.

Source: Wall Street Journal

  • Amazon
  • ipo
  • buy and hold
  • stocks

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , stocks

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