Why is that so! ! Realistic words! ! ! ! !
Many people tend to invest in the primary market?
The real situation may be different from what you think! In the investment world, the primary market is regarded by many as a "holy land" for finding opportunities to get rich. Many investors believe that by intervening early in the primary market, they can obtain high-quality targets that have not yet been discovered, and thus achieve rich returns. However, this view is often based on illusions. In fact, the difficulty of investing in the primary market is much higher than that in the secondary market, and truly promising projects are almost untouchable for ordinary investors.
The reality of investing in the primary market:
It is difficult to obtain high-quality targets: Although the primary market seems to provide an opportunity, in fact, truly promising projects are often not easily accessible to ordinary investors. These projects are usually controlled by institutional investors and insiders, and ordinary investors are often exposed to those projects with higher potential risks.
Lessons from the 2020 Hong Kong stock IPO: Taking the 2020 Hong Kong stock IPO as an example, many investors, including myself, hope to obtain excess returns through IPOs. At first, new shares did have certain benefits, but as the market changed and the number of participants increased, the success rate of new shares decreased, and eventually many people began to lose money. It is difficult for the benefits of new shares to exceed the benefits of directly buying stocks, because the volatility and competition of the market lead to lower returns.
How the primary market works: There is a lot of uncertainty in primary market investment, especially in startups. Even if you invest a lot of money, if the company starts to make a profit, your shares may be diluted, or the company may restart the project, resulting in your investment loss. In addition, there are very few successful cases in the primary market, and the probability of success is much lower than expected.
Limitations: Ordinary investors often do not have enough resources and information to participate in primary market investment. Many successful investors get opportunities through long-term relationship networks and in-depth market understanding, which are difficult for ordinary investors to have.
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