Brits love the underdog but as soon as there is a whiff of success, we’re criticising?

Britain, loves the underdog but as soon as there is a whiff of success, we’re criticising? What’s that all about? It’s really difficult to know what way an IPO will go. We’ve seen the meteoric rise of shares for the Royal Mail, which has generated much criticism that the shares were under-priced.  But sometimes, you can’t help feeling that ‘you are dammed if you do and dammed if you don’t’.

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Criticism would abound for the Royal Mail flotation if they had been a complete and utter flop, and overpriced.  Caveat Emptor springs to mind…

In fact, the Business Secretary, Vince Cable, recently pointed out that Royal Mail shares have made £2bn for the public purse – surely that’s a good thing?  Yet only this week, more criticism has been heaped on Cable, with MPs demanding further explanation, after the National Audit Office criticised the ‘over-cautious’ approach of the government’s privatisation of the Royal Mail.

So, is it not just a case of Caveat Emptor… it could have been so different, and there was no way real way of knowing. What’s true to say, is if you are fairly new to buying shares or a first time buyer, a general rule is it’s best to seek advice.

That said, with IPOs, hindsight is such a wonderful thing and no amount of research can really tell you what’s in store for the future.  As with anything, investment carries risk, and shares carry risk …should you buy them at all? …When should you buy? …And when do you sell?

Jeremy Warner from the Telegraph makes some interesting comments on the Royal Mail uncertainties.

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