ELI5: When is it okay to buy an IPO?


With IPO’s back in the news (CAVA, ARM, INSTA CART) think this will be a fun discussion.

I’m always reading here that IPO stand for “it’s always overpriced” or that “we all know IPO’s are just a cash grab” but technically every company must start with an IPO and many of these stocks have provided tremendous returns over the year (obviously many more have not). What goes into your decision and when do you decide it is a good time to enter a position?


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