Quote from: wachtwoord on August 22, 2012, 10:00:26 PM

Quote from: DeathAndTaxes on August 22, 2012, 09:56:52 PM

Quote from: wachtwoord on August 22, 2012, 09:41:51 PM

Dude there is a big difference between not investing and starting a fucking crusade.

Every big IPO on the stock market is a scam (why else would the current owners (insiders) sell? And don't say capital because every large business can loan the money quite cheaply). Do you see me posting this on every forum? No, I just don't buy IPOs.

Liquidity. Especially during the growth phase. Last time I check you can't eat a share certificate.

Added some emphasis. IPO-ing for a fair price as an established company is stupid as you can loan cheaply instead of selling equity. IPO-ing when the market highly overvalues the business however is great

OR sometimes the insiders want to reduce risk(to their wealth) and cash in and put some real(not paper) money in the bank. Look at Google- IPO'd for $100, go check what the market thinks it's worth now.

I do like debt(check my responses in D&T's loan thread) as a way to gain capital, but issuing equity(instead of debt) allows a company to weather a down turn much more easily than with large amounts of debt.

I do concede your general premise isn't a bad way to think, but it's certainly not always the case. Remember, diversity(in a portfolio) is the only free lunch.