this 3rd Quarter thoughts of 2020
Updated: Feb 4
Very few people on Earth ever get to say: ‘I’m doing, right now, the most important thing I could possibly be doing.’ If you join this fight, that’s what you’ll get to say.” Bill McKibben, Co-Founder of 350.org
Ever wonder if you can get some of that easy money that IPOs…Initial Public Offerings…seem to deliver? Really, they are the founders cashing in on years of hard work. You may hear about the big gains in the first few weeks, but you may not see what profits have been, after 5 years. 61% of IPOs are down 5 years after their public launch! Buying on Day 1 may be a recipe that does not taste very good and I have found we can track the stock and look for a lower risk time to buy in. Often, we can buy in even lower than the IPO price.
😲Why does this matter to you? It might take a year or more, but if you are patient, you could own shares of the company you love AND make money on it. When you love a company, like Beyond Meat, I will help you follow it for a smart time to make your first buy.
The initial public offering (IPO) market is gearing up for its busiest week since May of 2019, when Uber went public: 12 deals are expected to raise $6.8 billion this year. Snowflake, a cloud company that Warren Buffet has a stake in, offered 28 million shares to raise $3.08 billion and was the biggest deal of the year. Trading with the ticker SNOW, proceeds will be used for general corporate purposes and acquisitions. Not your typical Berkshire Hathaway play as it is not yet profitable, SNOW recently posted a net loss of $171 million, slightly less than it posted in the same period a year ago. 😲 Why does this matter to you? Leaving aside whether it fits your values, you will rarely see me recommend investing in a company that is losing money, with no real idea when it will turn out sustainable profits.
I worked with the Unitarian Universalist’s Investment Committee in Boston, in 2014, to divest from fossil fuel stocks. Here is one of our fund companies, Green Century, and some companies they screen out:
Civilian firearms and military weapons
Tobacco & Genetically Modified Organisms (GMOs)
Nuclear energy or nuclear weapons
Explore for, extract, process, refine, and transmit coal, oil, or gas
Burn fossil fuels to make electricity & Possess carbon reserves
No need to register, just click on the Join Zoom Meeting link below!
The fierce urgency of fire: How wildfires, hurricanes, and other extreme weather events underscore the case for climate action and renewable power on September 22 – Climate Week at 1 pm ET
Join Zoom Meeting ID: 99726602533 Password: 286481 (US) +1 646-876-9923 Passcode: 286481
😊Why does this matter to you? Investing in “dangerous industries” brings all sorts of risk to you and your portfolio. Join this Zoom meeting and hear how Green Century operates at this Climate Action and Renewable Power! The panel will explore how to move as swiftly as possible to a zero-carbon economy.
Michael Batnick, author of the Irrelevant Investor, on a most important concept in economics: inflation. Some things get more expensive over time: not everything goes up by the same amount…and in fact, not everything goes up. The table below helps understand why it is so hard to manage our budgets: look at what is lower: toys and TVs!
😲Why does this matter to you? The Fed bases their interest rate policy on trying to get inflation up to 2%. How inflation impacts you…informs decisions about your financial plan and affects how you spend your dollars. We will spend a lot of time over the coming year, talking about how inflation, and low rates, will impact you.
Good news can happen, even in the middle of a pandemic. Sheltering in place gave me the time to focus on taking Skye Advisors to the next level. Over the next few weeks, look for the Skye Advisors 2.0 reveal!