After one of our pre-IPO companies went public, an investor called in a panic. He hadn’t sold when we did, and the stock was at $7. What should he do? Sell it. Take the loss. We sold for a specific reason, and we are not going to win on every deal.
SoFi is the example in this short. Since we exited, the stock has been back up to the $20s, back down to $10, and later in the high teens. That’s the stock market: even a good company can be a volatile stock. Our game is to hold the company while it’s private and it isn’t trading that way, then get out of the public-market volatility.
Key points
- If you miss the exit and the public stock has dropped, the advice in this short is to sell and take the loss.
- Ticker Tape’s approach is not to sit in a volatile public stock hoping it comes back.
- SoFi has moved between the $20s and $10 since the exit, a reminder that a good company can still be a choppy stock.
- The strategy is to hold the company while it’s private, then step away from public-market volatility.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
