Responsible for – amongst other things – all manner of funny “sports fail” videos, potentially assisting people with insurance claims, helping to catch thieves, allowing us mere mortals some mouth-watering first person perspectives of what it might be like for elite extreme-sports men and woman (and/or nutters) strutting their stuff right in the sweet spot, and one of the most gorgeous videos I’ve ever seen, sports and leisure camera maker GoPro went public last week with a $24-a-piece IPO.
Falling into the infinitesimally small group of companies that I feel I actually “sort-of” understand – I know what their products are, what they do, who uses them etc. – I almost considered trying to get hold of some of these shares. However, I resisted because of one of the many reasons why I have steered clear of buying individual shares in any company thus far;
I have no idea what their “business model” is, what their accounts look like etc. and I’m not the sort of person (yet) that has the time or desire to look into it too much and try to make a call on whether I consider them “investable”.
It’s fair to say then, if I were to buy shares in any given company, it wouldn’t be the most well-informed decision, given my uber-lazy attitude in this respect. It could be said that it would be “a bit of a gamble”, and gambling is not high up on JAL’s “how to get rich” guide.
So, I stuck to my conservative guns, left all my investment dough in the confines of my warm, fuzzy passive index trackers, and let GoPro go pro without me. And what did I notice last night? In their first 4 days of existence on the NASDAQ, their stock pretty much doubled in price.
Whilst my initial reaction was obviously “Oh f***! If only I’d listened to my instincts and taken that punt…!”, at least I have re-affirmed something in my mind – even though occasionally I think I’m just starting to get a grip on the absolute basics of how “the stock market” works, it is still an entirely unpredictable place that scares the living crap out of me.
Maybe I’m wrong though? Maybe someone can explain this behaviour that we’ve witnessed in the first few days of GoPro’s IPO? If so, please let me know! Although I guess if anyone really did understand it, then they’d have also seen it coming, and thus have probably retired to their private island by now. In which case, don’t forget to send us a link to your GoPro scuba diving video 😉