Should you buy into an IPO or wait?

Question

Rich Dad · Accepted Answer

IPOs are like nightclub openings — the owners get rich, the crowd gets expensive drinks.
When a company goes public, insiders, venture capitalists, and early employees are usually the ones cashing out. You? You’re getting in when the marketing machine is in full blast and emotions are high. Hype inflates prices. I’d rather buy a great business after the excitement fades and Wall Street gets bored. That’s when discounts appear.
That said, I’m not ضد IPOs — I’m against being late and emotional. If you deeply understand the business model, see long-term dominance, and can stomach volatility, take a calculated position — small, strategic, patient. But don’t chase headlines. The real money is made owning compounding machines for years, not flipping opening-day pops.

Poor Dad · Answer

Be careful — IPOs are often unpredictable and volatile in the beginning.
When a company first goes public, there’s limited trading history and a lot of speculation. Prices can swing wildly in the first few months. If you’re investing for stability, retirement, or your pension, it may be wiser to wait until the company has several quarters of public financial reports. That gives you clearer data and less emotional pricing.
There’s nothing wrong with missing the “initial pop.” Steady, proven performance over time is usually safer than trying to catch early excitement. Investing should be boring and disciplined, not thrilling.

Should you buy into an IPO or wait?

Rich Dad Says

Poor Dad Says

Whose advice would you follow?

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