Benjamin Felix

I did a video on this topic and the title was kind of aggressive.

I don't know.

Very out of character, probably.

I don't know if we'll call this episode the same thing, but that one we called the mega IPO grift.

Anyway, that's roughly what the topic is.

It's just about some of the big IPOs that are coming down the pipe here potentially.

People who watch my YouTube channel may be thinking that this is going to be a repeat of what they saw on my channel.

And a lot of it is similar content, but I do have some new information to add to this episode discussion.

On a few points, I had some emails with Professor Jay Ritter and got some interesting new data points.

I also talked to the folks at Avantis about how

They handle IPO inclusion, which is actually different from how Dimensional does it.

I mentioned Dimensional in the video, so that's interesting, but we'll get to that in a minute.

The main issue here, and I saw this coming up a lot online, which is why I thought it made sense to make a video about it.

The main issue is that some massive private companies are set to go public soon.

SpaceX, OpenAI, Anthropic, there are a few other ones, Databricks, a couple others as well.

And these are private companies that would rank among the largest public companies if they were public.

The interesting thing is, and the relevant thing is for people who think like us and invest like us, buying the market basically, at least as a simplification,

The implication here is that if those companies go public and get included in an index, if you are an index fund investor, you're going to end up potentially buying some of these companies when they go public, whether you like it or not.

I think there are lots of other issues around this too, like separate from the investment thesis.

Some people don't like the idea of investing in certain companies for other reasons.