Lot of startups who are yet to make profits are filing for IPOs globally. I'm reading the filings and the language is terrible. A few tips on how to do it right.
Here are the right terms to use instead of the current antiquated language.
We are making losses.
"We've been consistently making negative profits and growing year on year."
We don't yet have a business model.
"We're innovation leaders in several fast growing market segments"
Losses will increase for the foreseeable future.
"Blockchain"
EBITDA is negative
"Our future adjusted EBITDA margin is consistently positive"
We Work got it right with their Community adjusted EBITDA
Revenues aren't growing
"We think once Elon reaches Mars the, TAM will double and we'll be a near monopoly in Mars"
Too much competition, commoditized product
"We don't believe in nonsense like revenues or profitabilty. This is our competitive moat"
Business model may not sustainable
"Blockchain"
Revenue visibility is uncertain
"If you discount 2200 earnings, out valuations factor all uncertainties offering investors the best value in the sector"
Product offerings aren't differentiated
"We use AI & ML for everything, including our employee ID cards"
"We will continuously offer exposure to innovative business models based on AI, ML, Blockchain to investors by trapping the markets will follow on innovating stock offerings"
Burn is high
"We continuously invest at the cutting edge of humanity to unlock new frontiers"
Blockchain
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Found out a surprising thing yesterday. My uncle had after working in a small company for about 35-40 years retired recently. He's from a typical middle-class Indian family and didn't have much in terms of property, money etc.
He's not well educated and had just passed his 10th and he's worked for most of his life doing odd things before settling at his last job.
So the question of retirement expenses came up and we were generally talking about it as we were cleaning up his old books and files. In the middle of this, I found a bunch of old paper certificates. He
Pretty much all personal finance books, blogs, podcasts I've come across can be summarized as:
1. Start saving early 2. Spend less, save more 3. Don't take debt 4. Avoid credit cards. Use them only if you can manage them 5. Avoid stock picking. Stick to low-cost index funds
6. Don't tinker with your portfolio frequently 7. Rebalance your portfolio -regularly/annually, etc 8. Avoid thematic funds, hot funds, fancy structured products, commodities, etc 9. Don't do market timing 10. Avoid bank RMs and insurance salesman
11. Have a funny money account. A small part of your portfolio where you do dumb and crazy shit. 12. Get health insurance and term insurance 13. Simple always beats complex 14. Have a will 15. Budget your expenses. Don't budget as long as you save enough 16. Asset allocation
We are in a structural bull market
We see favorable valuation in select pockets
We're sticking to competitive franchises with strong earnings growth
We're selectively buying at this juncture
We're cautiously optimistic about the global economy
We're not bullish, but we're not bearish either
Markets have run up substantially but investors should invest as much as they can
Profit booking is not advised
It may be a bubble, but no one can say
We advise investors to continue buying on dips
Markets are frothy but not investing is a bad idea
Investors should continue their SIPs
Investors need to have a long term horizon
The India growth story is still intact
We analyze top-down but pick stocks bottom up
Investors might make money or lose money in this rally. But all the snake oil salesmen and gurus will make a killing off all the unwitting traders and investors who are driven by greed and are desperate to make money.
Several scammy profiles have have 50K, 100K+ followers and are just blatantly peddling stock tips, options calls etc and all these traders and investors are flocking like flies to a piece of turd.
And it's working so far, but when this party ends, whenever it does, all the people who followed these illiquid small-cap gurus will be in deep trouble unable to find a bid even if they want to sell.