Hi folks,
I have managed to save up 2000 euros for stock market investments. I don't have the balls to do day trading, I like long term value plays. To that end, how do I participate in IPOs in Ireland? Both in companies listing here in Ireland and abroad - I'd like to be able to research into the companies and apply for their initial offerings.
Posted Feb 10, 2021, 7:55 AM UTC
Sorry, but, why IPO?
I reckon they are a good way to get in at listing price and if you do your DD you can find stocks that jump early on.
First, you can't access listing prices, only major investors can, by the time you can buy the price has already been set by the market, second, most IPO price do not meet the expectations. Look at Facebook. It took 1 year and half to regain the IPO value. In that time you could have bought an s&p etf and made 8% gain.
Most investments in IPOs lose money in the medium/long term. They wouldn't be a long term value investment and generally aren't available to retail investors to buy at the first listed price.
I haven't made any investments yet through them but you should check out Spark Crowdfunding, they are offering investment stakes in Irish companies.
Would you consider just buying a well diversifed ETF on de giro./ trading212 , leave it for a couple of years and save yourself a lot of heart ache? Some of the comments below have articulated it more succinctly than me but I think retail investors only really are able to get in after the real money has been made on IPOs; e.g airbnb.
IPO isn't big here and usually only to those in the know. Plus 2k wouldn't get u anywhere. I understand ur innocent thinking... Hmm, I'll invest only in IPO so the shares will make me reach... From hearing comments about google/amazon/tesla... If only I'd invested at the start... Sorry to burst ur bubble. Put ur 2k in the post office if u don't want any risk. Or open a DEGIRO or crypto account and play with ur 2k.
Check Motley Fool stock advisor, if your intention is to do long term investments. It's a paid service (but pretty decent price, you can get it for about $49/y) and perfect for newbie investors. Great tips, things ti avoid, etc, and mainly, the top stocks to buy and hold for 3-5y. They keep updating them every week, and they have a history of being on point with their stock recommendations.
A friend recommended it to me and has been great so far for my first 2 months. No need to get any extra services, stock advisor is enough.
Personally I would not advise the Motley Fool. I haven't paid for their service but their public articles regularly contradict themselves.
I second this, the majority of content on it is questionable. The guys making these reccomendstions wont outperform the S&P500 over a longer period.
Forget about individual stocks and just invest in an Index fund.
Their recommended buys for long term are consistently up significantly more than the average stock indexs like Dow Jones or S&P 500. They do their deep due diligence on all of them before issuing a recommendation and this is what I need (I have no time to do nor enough knowledge to do it myself).
Im just saying it's a great place to start if you are a newbie and looking to invest some funds for a long time. This is not meant for daytraders or shorters.
You're two months into your journey, I don't think you've got the threshold for long term buys.
You may be right but you can't compare performance to indexes over such a short horizon.
Oh I know that, I wasn't talking about the stock I bought but their overall historical performance for their recommended shares.
Their recommendations beat regular indexes consistently every year (if you are willing to hold). This is what I wanted, I'm not interested in daytrading. I want a list of stocks for which I can invest a regular sum every month, to move away from the savings accounts that give you peanuts now.
buy Tesla shares, their reserves are now secured by Bitcoin so it's relatively low risk
IPOs are usually only available to big budget clients of big brokerages
Is this an Ireland thing? Because I am sure retail investors can apply for IPOs in other countries. For instance, I have etrade for my ESPP and they keep sending me emails about IPO offerings.
The ones they are sending you are likely those vastly under subscribed and likely to underperform
It's discussed in this podcast by charted financial planners: https://rationalreminder.ca/podcast/134
They are Canadians talking about the US, but it's the same everywhere
!thanks TIL!! Will give that podcast a listen
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I’ve get invites to 2nd tier IPOs with TD Ameritrade and secondary offerings. Unfortunately, TD no longer take European customers. Todays IPO invite Apria inc ticker APR is looking at an offer price between $19 and 21$ I’ve been signed up to get IPO invites for 6 Months this is the first I’ve seen. I had lots of secondary offering invites but the stock price normally drops below the secondary offerings price.
JP Morgan, Goldman Sachs and Morgan Stanley take most of the big IPOs public and sell the book too their big clients.
In Ireland Davy would do the same as the big US investment banks, it’s safe to say we don’t have a big an IPO market here, so you might be waiting a while possibly years.
Alternatively you could save up to be an accredited investor, currently you need $200k income or 300k joint income and or net worth over 1 Million. With this you can invest in seed rounds these can be years before IPO and potentially more gains 100x