If the true value of an IPO is for a company to raise money to invest, and it can be mutually beneficial to the company and the investors, then market price is a driver of intrinsic value.
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A lot of IPOs even before the recent VC bubble were bailouts e.g. the birth of the REIT industry — got caught on the wrong side of spreads and went public to avoid BK
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Then value was transferred from one shareholder group to another and the IPOs still influenced intrinsic value per share?
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Isn’t this the same thing as “reflexivity” as coined by George Soros?
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Yes!
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It exists, but we dont know what it is yet! Which for practical purposes means exactly what you say!
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Wait, so you are saying that folks who make statements like, we don't care about macro, we are fundamental investors have it misplaced?
I totally agree, imho, either you state your macro assumptions explicitly or implicitly by using some average multiple (5 or 10 yr)Thanks. Twitter will use this to make your timeline better. UndoUndo
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This applies to all notions of value no
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