The stupendous fall in Nykaa/New Age companies
Some random thoughts –
- In hindsight, I remember many experienced folks mentioning at time of IPO that these can fall by 70-80% and they would not be surprised. These were 20+ years experienced and had seen the .com boom and bust… Experience matters!
- Again realisation that Retail investors are very very small people and we should always be cautious & humble.
- New Age companies are not really for us at any price!
- Flurry of IPOs, as some wise men have often said, point to a short/medium term peak and Oct/Nov 21 indeed was such peak for overall markets/New Age Tech IPOs etc… – I think this is my biggest and most useful learning/take home from this entire tution fees paid to such companies
- Missing the fact of lockin period (although was aware of 1 month Anchor investor lockin but missed the 1 year Pre IPO investor lockin) is totally unacceptable. Very basic I should have kept active track.
- Major protection has been from Allocation. I think this is the biggest card that we can play in this world of unknown. Having consciously chosen ONLY 1 New Age company and that too with ONLY 1% allocation helped to save my face.
- Actionable is – because of Point 6, as I could save portfolio from drowning, I might have option to add some in this fall…Lets see
Disc: Small approx. 1% position in Nykaa. Transactions this week also. Views only for academic purpose. Not eligible for any advice.
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