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I'm 26 and I don't know anything about finance or stocks. I've never invested before and I'm planning on purchasing ARM stock the day they IPO. Is this a bad

I'm 26 and I don't know anything about finance or stocks. I've never invested before and I'm planning on purchasing ARM stock the day they IPO. Is this a bad idea? I was planning on investing a sizeable chunk of my savings.

wskinner 3y ago
Yes. If you know nothing about investing, the best thing you can do is read "A Random Walk Down Wall Street". It's quick and easy and explains why beating the market by picking stocks is not a great way to invest.
- qznc 3y ago
  For people who prefer a website over a book, this is a solid place to start: https://www.bogleheads.org/wiki/Main_Page https://www.bogleheads.org/wiki/Main_Page
Varloom 3y ago
Softbank are dumping their shares in ARM while at peak valuation, before RISC-V eats its market share (they saw it coming, that's why they are rushing to IPO before rise of RISC-V). Most big ARM clients are dumping ARM for RISC-V. Including, Qualcomm: https://arstechnica.com/gadgets/2023/08/qualcomm-one-of-arms-biggest-customers-starts-a-risc-v-joint-venture/ https://arstechnica.com/gadgets/2023/08/qualcomm-one-of-arms... Google (Converting whole Android system to support RISC-V): https://arstechnica.com/gadgets/2023/01/google-announces-official-android-support-for-risc-v/ https://arstechnica.com/gadgets/2023/01/google-announces-off... And Samsung : https://research.samsung.com/news/Samsung-Electronics-Participates-in-RISE-an-Open-Source-Project-for-Enabling-Software-Ecosystem-of-RISC-V https://research.samsung.com/news/Samsung-Electronics-Partic... When you want to invest look for the underdog, not a company that has it's market share ready to be eaten alive by RISC-V in the coming 5-10 years.
- deleted 3y ago
  [deleted]
- janc_ 3y ago
  Not dumping ARM, but certainly moving away from being ARM-only, so ARM's share of the market will drop...
brucehoult 3y ago
If you don't know anything about finance or stocks then you are EXACTLY the retail customer they are looking for! SoftBank paid $32 billion for Arm in 2016. People at the time were saying that was waaay too much, and that was even without 99.9% of people in the industry having RISC-V on their radar yet. A fair valuation of Arm, assuming that they're going to grow at a kind of industrial average rate from here on, would be 15 to 20 times annual profits. That's something like $8 to $12 billion. $50 billion is insanity.
formerly_proven 3y ago
Buy an ETF instead, this is a bagholder IPO riding the AI hype. Do you want to be a bagholder?
usr1106 3y ago
Investing a sizeable chunk of your savings is gambling. In a couple of years you will know whether it was a good idea or not. And some so-called experts will tell you, that's what we said. And some other so-called experts will be very quiet.
Jyaif 3y ago
> I'm planning on purchasing ARM stock the day they IPO. Consider reading the "RISK FACTORS" section of their IPO filing: https://www.sec.gov/Archives/edgar/data/1973239/000119312523216983/d393891df1.htm https://www.sec.gov/Archives/edgar/data/1973239/000119312523...
Andrex 3y ago
Can I ask what led you to this decision? I'm genuinely curious.
panick21_ 3y ago
> I'm 26 and I don't know anything about finance or stocks. If you don't know much, then don't try to be smart. Invest in broad index bonds rather then individual stocks. For my money, ARM is sinking in the water. RISC-V will eat its lunch far faster then anybody believes. ARM overall trajectory is down not up.
photonbeam 3y ago
Risky. I suspect there will be a lot of short-sellers for arm, the growth story doest warrant the valuation and p/e multiple

wskinner 3y ago

Yes. If you know nothing about investing, the best thing you can do is read "A Random Walk Down Wall Street". It's quick and easy and explains why beating the market by picking stocks is not a great way to invest.

qznc 3y ago
For people who prefer a website over a book, this is a solid place to start: https://www.bogleheads.org/wiki/Main_Page https://www.bogleheads.org/wiki/Main_Page

Varloom 3y ago

Softbank are dumping their shares in ARM while at peak valuation, before RISC-V eats its market share (they saw it coming, that's why they are rushing to IPO before rise of RISC-V). Most big ARM clients are dumping ARM for RISC-V. Including, Qualcomm: https://arstechnica.com/gadgets/2023/08/qualcomm-one-of-arms-biggest-customers-starts-a-risc-v-joint-venture/ https://arstechnica.com/gadgets/2023/08/qualcomm-one-of-arms... Google (Converting whole Android system to support RISC-V): https://arstechnica.com/gadgets/2023/01/google-announces-official-android-support-for-risc-v/ https://arstechnica.com/gadgets/2023/01/google-announces-off... And Samsung : https://research.samsung.com/news/Samsung-Electronics-Participates-in-RISE-an-Open-Source-Project-for-Enabling-Software-Ecosystem-of-RISC-V https://research.samsung.com/news/Samsung-Electronics-Partic... When you want to invest look for the underdog, not a company that has it's market share ready to be eaten alive by RISC-V in the coming 5-10 years.

deleted 3y ago
[deleted]
janc_ 3y ago
Not dumping ARM, but certainly moving away from being ARM-only, so ARM's share of the market will drop...

brucehoult 3y ago

If you don't know anything about finance or stocks then you are EXACTLY the retail customer they are looking for! SoftBank paid $32 billion for Arm in 2016. People at the time were saying that was waaay too much, and that was even without 99.9% of people in the industry having RISC-V on their radar yet. A fair valuation of Arm, assuming that they're going to grow at a kind of industrial average rate from here on, would be 15 to 20 times annual profits. That's something like $8 to $12 billion. $50 billion is insanity.

formerly_proven 3y ago

Buy an ETF instead, this is a bagholder IPO riding the AI hype. Do you want to be a bagholder?

usr1106 3y ago

Investing a sizeable chunk of your savings is gambling. In a couple of years you will know whether it was a good idea or not. And some so-called experts will tell you, that's what we said. And some other so-called experts will be very quiet.

Jyaif 3y ago

> I'm planning on purchasing ARM stock the day they IPO. Consider reading the "RISK FACTORS" section of their IPO filing: https://www.sec.gov/Archives/edgar/data/1973239/000119312523216983/d393891df1.htm https://www.sec.gov/Archives/edgar/data/1973239/000119312523...

Andrex 3y ago

Can I ask what led you to this decision? I'm genuinely curious.

panick21_ 3y ago

> I'm 26 and I don't know anything about finance or stocks. If you don't know much, then don't try to be smart. Invest in broad index bonds rather then individual stocks. For my money, ARM is sinking in the water. RISC-V will eat its lunch far faster then anybody believes. ARM overall trajectory is down not up.

photonbeam 3y ago

Risky. I suspect there will be a lot of short-sellers for arm, the growth story doest warrant the valuation and p/e multiple