Financial Advisers: How to Counsel Clients in a Hot IPO Market

cfa_logoLauren Foster of the CFA Institute has an excellent article up at Enterprising Investor about IPO investing. That I’m quoted is an added bonus. My friends Carl Richards and Michael Kitces show up too.

“For those who are convinced that any particular IPO will be ‘the one’ (after all, it might be), I encourage them to understand both the risks and the odds before they buy, and that they only buy with money they can afford to lose,” Seawright says. “It’s like going to Vegas. The lavishness of the casinos demonstrates that the odds favor the house. But, if you only play with money you can lose (perhaps out of your entertainment budget), it’s not quite so bad.”

I encourage you to read the entire article. 

Financial Advisers: How to Counsel Clients in a Hot IPO Market

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