Tell me about a recent IPO that you have followed?
One of the most recent IPOs that Paul Mampilly has followed closely is a music streaming service called Spotify. Spotify originated in Sweden, but in order to get there service on Wall Street they avoided paying the $100M fee usually given to go public. Spotify did something called public listing.
Spotify’s Business Model
Spotify follows a business model which has become very familiar in recent years called the subscription service. The subscription model of business allows a business to accept a certain amount of money in a repeating time frame, whether monthly, quarterly or yearly. From those subscription payments the business can generate new services for its customers. The Spotify model also uses a certain amount of AI in its listening services, since it learns what one listener prefers to listen to over another listener. It takes this learned knowledge and applies it to the subscriber’s playlists.
What is the #1 mistake people make when investing in stocks for the first time?
The big mistake that first-time investors make which is easy to see why it is wrong, is that they go all in on one stock. By placing everything on one stock it is hard to leverage the market as a whole. Secondly, when first-time investors invest in several stocks, they tend to put more on one stock over all of the stocks they purchase. Lastly, first-time investors allow the market’s ups to motivate them to buy. An investor needs to have more control over their investment decision rather than following what the market is doing. Watch Paul Mampilly on Youtube.
What entrepreneurs do you admire and why?
Elon Musk has lots of guts to start the things he did. For example he started a market in Tesla, electric cars, he essentially created that market. He did the same thing with SpaceX.
Paul Mampilly is the Senior Editor for Banyan Hill Publishing and the Founder of Capuchin Consulting. Paul Mampilly worked on wall Street for several year until the age of 42, when he decided to stop helping the large corporations on Wall Street make $Millions and turn his attention to helping the day working American who would like to get more knowledgable about what Wall Street has to offer. His role at Banyan Publishing allows him to share his knowledge and success with others who are just beginning to take hold of their own finances and seeking to grow them with others as an educational guide. Learn more: https://www.crunchbase.com/person/paul-mampilly