Globalization underpins the fast growth of the current generation of Internet companies, especially those heading toward IPOs in the near future, according to four Silicon Valley leaders in video interviews released by Wealthfront today. Great Perspectives on Tech IPOs from Wealthfront. All four leaders, in different ways, address the central questions hanging over the technology community: whether we are in the midst of a speculative bubble and how long the current wave of expansion and IPOs might last. “Every company that’s now in the market has a much larger base. They can operate globally in a way they couldn’t 10 years ago,” says Eric Schmidt, executive chairman of Google. “The globalization of the Internet is a very big deal for […]
One of the most important and difficult decisions you’ll make after your company navigates a successful IPO and lockup period is when and how much of your stock to sell. After numerous Wealthfront clients asked the question, Jared Jacobs, one of the engineers here at Wealthfront, created a simulation to help employees at new public companies visualize different approaches to selling some or all of their stock. As far as we know, it’s the first publicly available simulator of its kind. [...]
This week saw two tech IPOs and news of one more in the offing, Yelp’s. If you’re one of those employees at a company that’s gone public or is preparing to go public, you may end up with options that are suddenly worth a lot of money, and facing questions about whether to exercise your options and then how much of the company’s stock to sell. Remember that keeping too much of your portfolio in one company’s stock – even your own company’s stock – is one of the investing practices academic researchers have consistently demonstrated is a mistake. (See The 9 Stupid Things Investors Do). In what’s known as familiarity bias, people tend to invest in what they know, […]
Here’s another good case for looking under the hood of your mutual funds and ETFs: Brett Arends’s excellent piece in Smart Money Magazine about how many global funds are heavily invested in the U.S. stock market. For instance, he wrote of Vanguard’s Total World Stock Index that 42% of the money is invested in the stock market of just one country—you guessed it, the U.S.