[jameslk]

I've been curious what the hypothetical outcome would be if you were to invest the same amount of money in every IPO for the past 30 years and sell at a fixed time 10 years later. Are IPOs underpriced, overpriced, or neither on average over the long term? How does the return compare to investing the same amounts into the S&P 500 or similar benchmarks over the past 30 years?

[hendzen]

there is an ETF that does this, at 2 years rather than 10. https://www.renaissancecapital.com/IPO-Investing/US-IPO-ETF. Performance ITD has been worse than SPY until very recently when a lot of tech companies (incl IPOs) have had very strong performance... which is obviously why this thread is even happening.

[jameslk]

Interesting... although 2 years doesn't seem like a meaningful enough time frame to capture real growth, only hype.

[quickthrower2]

Which is the strategy no doubt!