"We shall repeat here without apology--for the warning cannot be given too often--that the investor cannot hope for better than average results by buying new of

"We shall repeat here without apology--for the warning cannot be given too often--that the investor cannot hope for better than average results by buying new offerings, or 'hot' issues of any sort, meaning thereby those recommended for a quick profit. The contrary is almost certain to be true in the long run. The defensive investor must confine himself to the shares of important companies with a long record of profitable operations and in strong financial condition. (Any security analyst worth his salt could make up such a list.) Aggressive investors may buy other types of common stocks, but they should be on a definitely attractive basis as established by intelligent analysis." - p28 The Intelligent Investor (Revised Edition 2003) The IPO market partly thrives on the fact that there are highly speculative and/or uneducated investors out there willing to invest in any new offering. Investors must expect IPOs will fail without blame, in my opinion, and diversify accordingly. Unfortunately, the uneducated speculators are the ones that likely lose it all on something "guaranteed" to be hot.