Thread by @tusharbohra

A lot of you would have wondered why so many IPOs together... hardly any time to study them well.

Precisely....hardly any time to study them well... that's the genius of a reason

(1/n)

Mediocrity hides in a crowd...many a mask it wears
As "smart" investors in IPOs
Play a game of musical chairs

(2/n)

This is a well tested trick of behavioral science...followed in so many places... the pattern is easily recognizable

(3/n)

For example, the fineprint in a legal document or agreement, notes to financial accounts, conditions to be reviewed and agreed on websites etc., marketing pitches (the footnote on a slide) etc

(4/n)

Make things difficult to access or understand and make the obvious (such as the next 2 years earnings CAGR) very easily visible...let the gullible fall prey to the game, there's always someone who hasn't done enough work (actually, given the time constraints, most haven't)

(5/n)

Last, but not the least....peer pressure and the art of creating artifical scarcity and time pressure (crunch the decision making time)...makes for the perfect FOMO
Especially true for institutional investors. ;)

(6/n)

Ever wondered why is it that all the companies coming for an IPO generally have fantastic past 3 years CAGR or maybe next 2 years estimate CAGR, or maybe both? And how, for most, this growth vanishes very quickly on listing???

(7/n)

Enjoy the party while it lasts
Remember though, that the empty chairs are slipping away, one at a time....someone is going to be left standing without one very soon.

(8/8)