In real life, most of us believe in the romantic notion of finding the love of our lives ourselves. Who wants to be caught in an arranged marriage in this day and age?
But when it comes to our investments, our actions may betray our hidden need to honour our traditional practices – even though we may speak out against it.
Just take participating in an IPO – what do we do? We swallowed the sweet promotional words of the “matchmaker” hook, line, and sinker!
Now there are 2 kinds of IPOs:
1) I never heard of you kind
2) Oh, I know you; you’re famous!
It does not matter. Once you have taken the bait, you will make yourself believe you know the company inside out. You are a believer now!
Like all marriages, once the mundane of everyday living has doused the rose-tinted flames of the honeymoon period, we begin to see the true nature of our partners breaking out.
To some lucky souls, it’s like the beautiful sight of the butterfly emerging from its pupa. Aw…
To others, it could be like the horror of the baby alien breaking out from its host’s stomach. Ah!!!
Savvy and sophisticated investors will approach IPO investing like they go about finding their dream partner. Go on a first date (invest a little), if the chemistry is right continue on a second date and more dating (scale in slowly).
Anytime during their dating relationship if something does not work out, both parties can walk away (cut-loss) with less emotional and financial baggage than had they got into marriage on the first date!
One night stands
Some may prefer to have one meaningless relationship after another. The one night stand people. Thinking that since they will leave on the next morning (IPO staging), that should minimise the emotional damaged of being hurt.
That is of course until they got the medical report for that rash or sore…
It’s all about speculation
Even if you have never gambled before, isn’t life all about speculation?
Like buying your favourite durians (you can substitute with your favourite fruit here).
Some will taste heavenly, some will disappoint you. We take the good with the bad.
IPOs are no different. (And marriages)