Your Daily Bit of Wall Street Wit & Wisdom

Lyft IPO party

Lyft IPO party in Los Angeles, h/t Alex Welsh for the New York Times

“The chief losses to investors come from the purchase of low-quality securities at times of favorable conditions.”
— Benjamin Graham

Friday’s launch of trading in the Lyft IPO (initial public offering) made plenty of news.  What it didn’t make was money for those who bought at the open.  All those who clambered to get in on the action closed under water.

IPOs can be used as an exit strategy for business owners and early investors.

The ride-hailing company reported losses of $682 million in 2016, $688 million in $2017, and $911 million in 2018.  Lyft has cautioned that losses could mount as the company seeks international expansion.

IMO, zip your wallet.

Get where you want to go and enjoy your weekend!

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

Paris opera house

The Palais Garnier, Paris h/t Rindoff / Dufour via Getty Images

“If you have to sit in the balcony, it’s time to head for the exits.”

The adage above is apt admonition for investors eagerly awaiting a slew of IPOs (initial public offerings), as well as those clamoring for Chinese junk bond yield.

Sometimes it’s better to enjoy the show from afar.

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

news

h/t digitaltrends.com

“Headlines, in a way, are what mislead you, because bad news is a headline, and gradual improvement is not.”
— Bill Gates

Investing is done over a long time horizon (years).  Speculating concerns a short time  (days, weeks, months).  Our specialty is sensible speculation.

You may find that by the time a market move makes headlines, it’s too late.  Look at the character of market price behavior, not what the headline writers make of it.  What they say may turn out to be a contrary indicator.

And that can be useful, as well.

Best regards,

Steve