Topic: How To Invest

What is Pat’s commentary for the week of August 10, 2021

Article Excerpt

We agree with the Inner Circle member (see next article) who asked about Diversey. As IPOs (also referred to as new issues) go, it’s a winner. Prior to the IPO, Diversey was wholly owned by Bain Capital. Bain is in the top ranks of U.S. private investment firms, managing $120 billion of investor capital. That’s not to suggest that big investment companies are above reproach, or that they never profit from a conflict of interest with investors—nor abuse investor trust. However, Bain’s former CEO, Mitt Romney, later served as governor of Massachusetts and subsequently ran for the U.S. presidency in the 2012 election. A firm like Bain has a lot to lose if it fails to live up to its reputation. That’s not true of all IPO promoters. All too many are businesspeople who are in the stock-promotion business. That’s one of the hidden risks of IPOs: it’s much easier for a promoter to set up a company and sell the shares to…