Dell
Current return on $10,000: $1.5 million
Michael Dell already was building computers at just 15 years old, and it turned into a fast-growing business when he attended the University of Texas. Of course, he dropped out to launch his self-named company, Dell (NASDAQ:DELL).
The company rode the surge in the PC revolution and it came public in 1988. Within just nine years, the stock would snag a 100X return.
But the key to Dell’s success wasn’t just the products — it was a change in the company’s business model. To reduce its inventory costs, Dell adopted a built-to-order manufacturing model, which resulted in much higher cash flows and profits.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
Comments are currently unavailable. Please check back soon.