Yeah, this is very common and would basically keep me from buying any shares other than some small gambling amount.
If nobody that purchases the IPO can trade for 180 days, does the price just sit there? If not, where are the tradeable shares coming from? Just the owners, venture cap, and maybe employees?
I’m not any kind of an expert on this, but I’d expect that lockups mostly apply to actual insiders (employees and VC firms) who already owned shares before the IPO, rather than the large investors who were allocated shares at the IPO. The general idea is that there’s an enormous adverse selection problem with an IPO - you don’t want to buy a big chunk of stock at exactly the same time that the CEO and other insiders want to sell it. So, to generate more confidence in the IPO, the insiders pledge to hold their shares for 6 months to say, “Hey man, I’m not just trying to sell you a pile of shit. I’m willing to hold these shares for at least another 6 months to prove it.”
There’s not a similar adverse selection problem for the large investors buying at the IPO price, so there’s no reason to impose a lockup on those shares.
Not sure how this applies to Surf’s situation or why he has access to shares at the IPO price. Maybe they allocated a certain % to customers?
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I’m been seeing more “for sale” signs in the past few weeks and they have been staying up longer.
Is the housing market cooling off a bit?
(And by “cooling off”, I mean “still really hot” as opposed to “surface of the sun hot”)
In my area it has definitely cooled down. I think it’s as simple as people going back to big cities as they realize the office is not in fact dead (and cities are fun when there isn’t a pandemic).
There do seem to be more listings in my area compared to when I last looked, and some of the places that were there when I last looked still are. Not seeing anything like price drops though.
Definitely looks like it based on the data mentioned below
Total U.S. for-sale inventory rose 3.9% in May from April, the first monthly uptick since July 2020 and only the fifth such gain recorded over the past 24 months. Inventory was up in May from April in 43 of the nation’s 50 largest markets (for which we have data). Still, inventory nationwide is down 31.2% from a year ago, the fourth straight month of 30%+ year-over-year national inventory declines. Inventory was up from a year ago in just three of the nation’s largest markets — San Jose (30.3%), San Francisco (25.6%) and Milwaukee (2.6%). Inventory in a fourth large market, Seattle, was only 0.4% below May 2020 levels.
From https://www.zillow.com/research/zillow-may-2021-market-report-29635/
L O L
GE is reverse splitting its stock 1-for-8.
LOL at Jack Welch for shamelessly manipulating their earnings to create the illusion of stable growth. LOL at his successor Jeff Immelt for lots of things, but most importantly always having an empty private jet following the private jet he actually traveled on, just in case there were delays with his primary jet. And LOL for anyone who held up Welch as a great businessman.
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I’ve seen a couple of price drops in my area. But when I zillow search homes right now, everything is significantly more expensive than it was a year ago. Maybe they got ambitious and priced too high … there is a home across the street from me for sale, for about $550,000. It’s been on the market almost a year, maybe? Went under contract and then back on the market. It sits on 10 acres. I wonder why no one bought it.
My neighbor is planning to put her house on the market, but for some reason still hasn’t done it yet. (She might be waiting until she finds a house to buy?) Feel like she’s losing tens of thousands of dollars by not putting it up two months ago.
Jeff Immelt has to be in the conversation for worst huge company CEO, non criminal division.
Lol Jack Welch. The fact he picked Immelt is on its own proof he sucks.
Just lol. Have a special committee say it’s ok and apparently you can insider trade with impunity.
I cany believe Immelt is only 65. He’s been around forever.
You’re hiding the punchline: the CEO claims to have sold the stock to expand his turkey-hunting farm. As one does.
Buffett letter on philanthropy:
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Interesting brief letter. He’s now given away roughly half of what he pledged in 2006: shares that are currently worth $100 billion.
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There’s a nice recognition that his philanthropy is basically painless for him:
The easiest deed in the world is to give away money that will never be of any real use to you or your family.
- Related to that, a recognition of the more difficult and admirable type of philanthropy:
A much more admirable form of philanthropy than mine involves the giving of personal time and effort. I’ve done little of that.
Those who give their love and time in order to directly help others – perhaps adding a monetary gift that requires them to give up the purchase of something meaningful for their own use – are the heroes of philanthropy. America has millions of such givers.
These people receive no recognition whether they mentor the young, assist the elderly or devote precious hours to community betterment. They do not have buildings named after them, but they silently make those establishments – schools, hospitals, churches, libraries, whatever – work smoothly to benefit those who have received the short straws in life.
I have not given my time or energy in comparable measure.
- Most interesting, I think, is a discussion about whether to donate large sums now to provide immediate help to people, or to let that wealth compound so that even larger sums can be donated later:
My 16 annual contributions to the five foundations I’ve funded were worth $41 billion when disbursed. As I instructed, the funds were spent or committed quite promptly.
Had I waited until now to give the shares, they would have instead brought $100 billion to the five foundations. The question then becomes: Would society ultimately have benefitted more if I had waited longer to distribute the shares?
My first wife and I were totally in sync in respect to our philanthropic goals. She, however, favored giving away large sums when we were young – when our net worth was a tiny fraction of its eventual size. I held out for later, remaining charmed by the results of compounding. I was restrained as well by the desire to retain unassailable control of Berkshire. It was only after my wife’s death that I, at 75, stepped on the accelerator.
Deciding when to switch from building philanthropic-destined funds to depleting them involves a complicated calculation based on the nature of the assets involved, family matters, the seldom-confessed instinct to not “let go” and a host of other variables. One size definitely does not fit all.
And the sad part:
I still relish being on the field and carrying the ball. But I’m clearly playing in a game that, for me, has moved past the fourth quarter into overtime
Man that ending quote sure sounds like one of those “I know I am going to die soon” stories that tend to come true.
That sucks. You gonna sell immediately? (I would)
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