I realize the title of today’s column might be confusing.
I mean, just yesterday in this same newsletter, Matt trashed IPO investing.
But here’s the thing:
While I agree that IPO investing is a terrible strategy for making money these days…
IPOs can still deliver huge windfalls to you — but only if you know what to look for.
So today, I’ll introduce you to one of the best-kept secrets of the IPO market…
And most importantly, I’ll show you how to use it for potentially life-changing returns.
IPOs Are Dead! Long Live IPOs!
As Matt explained yesterday, IPOs are a tough sell to investors these days.
I mean, just look at Coinbase, the leading crypto exchange here in the U.S.
Less than a decade ago, the company was worth just $200,000…
But now, with an IPO on the horizon, the company is expected to command a market cap of $100 billion.
And while Coinbase is certainly successful, in my opinion, $100 billion is too hefty of a price tag to pay for it.
I mean, the company that owns the New York Stock Exchange is only worth $60 billion.
Bottom line: due to Coinbase’s sky-high market cap, it seems unlikely investors will be able to earn significant returns if they invest at the IPO price.
And to be clear, this isn’t a “one off” example of how expensive (and therefore, how unprofitable) IPOs have become…
This Chart Says It All
To see what I mean, just take a look at this chart:
This is a list of some of the biggest IPOs from 1980 to 2013.
See those gray bars on the left?
The gray bars represent the gains for public stock market investors — in other words, all the gains that happened after a company IPO’d.
With Apple, for example, back in 1980, you can see the gray bar makes up almost half the value that Apple created.
But now look at the orange bars on the chart...
They represent the profits earned by investors who got in before the IPO.
And look at what happened in the early 2000s — as you can see, everything shifted!
Instead of IPO investors earning big returns, the vast majority of profits shifted to private market investors. In other words, folks who got in BEFORE the IPO.
Locked out for Nearly 90 Years
Unfortunately, getting into a pre-IPO investment is easier said than done…
Ever since the Securities & Exchange Commission was established in the 1930s, private pre-IPO investments were legally off-limits to the vast majority of U.S. investors.
You had to be a well-connected, wealthy insider to grab a stake in these deals.
However, several years ago, Matt and I uncovered a secret back door into the world of pre-IPO investments.
In fact, Matt was one of the first people to tell me about this secret…
It’s something he calls Pre-IPO Cheat Codes.
REVEALED: Pre-IPO Cheat Codes
These pre-IPO cheat codes are 10-digit numbers…
And if you know these codes (along with a couple of other critical pieces of information), you could potentially “backdoor” your way into the hottest pre-IPO investments.
In other words, you can get into these companies before they go public — and then cash out on IPO day for a potential fortune.
For example, this is Twitter’s pre-IPO cheat code: 0001418091.
If you’d known the secret to this code, you could’ve gotten into Twitter before it went public.
In other words, instead of earning 78% since Twitter’s IPO…
You could have cashed out on IPO day for a gain of 2,692% — that’s enough to turn a $5,000 investment into $134,600!
And that is the secret to getting rich from IPOs — getting in before the company goes public, and selling on IPO day, while almost everyone else is buying.
But again, this only works if you know the secret behind these Pre-IPO Cheat Codes.
Want to Know More?
So, before I ramble on and tell you more about this pre-IPO backdoor, let me ask you a question:
Is this something you’d be interested in learning more about?
I’m sure Matt would be happy to share the details behind this discovery — and show you how to get your hands on some of these Pre-IPO Cheat Codes for yourself.
But I’ll leave that up to you…
If you’d like to learn more about Pre-IPO Cheat Codes — and want to learn how you could use them to earn potentially life-changing wealth — just reply to this email now and write, “Tell me more!”
If we hear back from enough people, I bet I can convince Matt to share more details with you.
Just click “reply” now and let me know!