Chris’ note: As regular readers know, our mission at the Cut is to help you really move the needle on your wealth. That’s why, today, we’re turning the spotlight on one of the biggest wealth-making opportunities in the world right now – pre-IPO shares.
As my colleague Teeka Tiwari has been showing his readers, this year, pre-IPO investors are averaging 22,946% gains on the days companies go public. The opportunity is so massive, he’s putting together a special event to show you how to profit. It kicks off next Wednesday, September 9, at 8 p.m. ET. You’ll hear from Teeka on one private deal he believes could set you up for life.
Sign up for the event here. Then hear from Teeka below on how to make a fortune in the coming IPO mega wave.
The IPO wave I predicted in early January is here…
Just last week, a federal agency announced a new rule that will send it into overdrive.
I smell a huge opportunity. But before I get to this big news, let me back up…
An IPO – or initial public offering – is when a private company lists its shares on a public exchange.
I’ve been watching the IPO market closely since 2019. And in January, I told my readers we’d see a mega wave of companies going public this year.
I believe it’ll rival the wave of IPOs we saw during the tech boom of the 1990s.
Back then, we saw companies like Amazon.com (AMZN), eBay (EBAY), and Nvidia (NVDA) go public. Today, they’re some of the most valuable companies in the world.
So far this year, we’ve seen private companies going public raise $116 billion. These include IPOs and special purpose acquisition companies (SPACs) – a quicker and less complex route to market.
And that’s despite the IPO market shutdown earlier this year due to the COVID-19 outbreak.
With the nationwide lockdown now over, we’re seeing a stampede of companies going public.
Last week, five tech companies filed notices to go public: Unity, Sumo Logic, Asana, JFrog, and Snowflake. Shortly before that, data analytics titan Palantir said it’d go public this year… with a valuation of about $26 billion.
And soon, we could see the largest IPO in history. The payment arm of Chinese e-commerce giant Alibaba plans to go public with a target valuation of more than $225 billion.
With all this bullish news, it’s no wonder the IPO market is up 61% so far in 2020. That’s nearly eight times the U.S. public stock market bellwether index, the S&P 500, which is up only 8% since the start of the year.
But this is just the beginning. A recent announcement by the Securities and Exchange Commission (SEC), the main stock market regular in the U.S., will send this red-hot trend into absolute overdrive…
And it could make you a small fortune.
Last Wednesday, the SEC approved a proposal by the New York Stock Exchange to allow companies to raise capital through direct listings on exchanges.
The Nasdaq reportedly asked the SEC for a similar change to its rules.
I can’t tell you how bullish this news is…
Now, I won’t get into all the details. But the rule change allows private companies to list on public exchanges without taking the traditional, cumbersome, and expensive IPO route.
It’s another option for private companies to list shares right away… And it’s going to create a wave of brand-new IPO millionaires.
But don’t just take my word for it…
Billionaire venture capitalists (VCs) Bill Gurley and Peter Thiel are absolutely giddy about the ruling.
After the SEC made its announcement, Gurley simply tweeted, “YES!”
And it’s no surprise why…
It gives VCs another way to offload their private shares onto the public for massive gains…
Here’s what I mean by that…
You see, for years, insiders have dumped their cheap shares, which they bought in the private market, on public market investors.
But nobody complains…
Because to get you to buy their shares, they price the IPO deal in such a way that you can make double-, triple-… and sometimes even quadruple-digit returns.
But while you’re popping champagne over your “easy-money” windfall, the insiders are laughing their butts off on the yacht you just bought for them.
Let me explain exactly what’s happening…
Wall Street has conditioned you to think making a double or triple gain in a day is a lot. It isn’t.
Take Uber (UBER), for instance…
Gurley’s VC firm, Benchmark, bought private shares in Uber for pennies. It made a 64,200% gain when Uber went public.
Regular investors who bought Uber on IPO day haven’t made a dime yet.
Facebook (FB) is another example…
Regular investors are up 665% since IPO day. That’d turn $250 into $1,912. Not bad…
But Thiel had stock in Facebook before it went public. In other words, he had pre-IPO shares. The day Facebook went public, his pre-IPO shares made him 200,000%. Enough to turn $250 into more than $500,000.
That’s the difference between buying the IPO and buying pre-IPO. If you want to get rich from IPOs, you have to buy shares before they go public.
You can see why guys like Gurley and Thiel are doing somersaults. They have a new way to get you to pay for their next jet.
If you think a couple of IPO double- or triple-digit winners will make you wealthy in the long term, you’re wrong.
They’re just table scraps these uber-wealthy private investors throw your way so they can offload their stocks onto you… while they make the massive gains.
If you really want to be set for life, you need to buy shares in private companies before they go public. That’s how Thiel and Gurley made their billions.
And thanks to another SEC rule change, ordinary investors like you can now profit in what was once Wall Street’s exclusive playground.
These regulatory changes are going to level the playing field. That’s why I’m putting together a special event to show individual investors how they can profit from private markets.
And leading up to it, I’ll be holding my first-ever, free pre-IPO workshop. You can go here to get notified as soon as I release workshop videos.
I created the workshop to prepare you for my first-ever Set for Life Summit on Wednesday, September 9, at 8 p.m. ET.
During the summit, I’ll show you how one pre-IPO deal in what Forbes calls the “most profitable sector” in America can have you “set for life.”
Friends, if you want a legitimate shot at being set for life, you need to at least hear what I have to say.
The only cost to attend is keeping an open mind. If you can come with an open mind, what I’ll reveal on September 9 could help you fund a retirement nest egg in a single day.
Let the Game Come to You!
Editor, Palm Beach Daily