When it comes to wealth building, avoiding IPO hype can be one of the smartest decisions a doctor investor makes.
Just this week, Figma’s IPO soared 250% on the opening bell. But while the headlines were loud, I quietly passed.
Here’s why, and what I have learned from over 20 years investing in public companies.
What is Figma and Why the Buzz?
Figma is a popular design platform, often described as “Google Docs for UX/UI teams.” It’s a collaborative tool that’s taken the design world by storm.
In 2022, Adobe tried to acquire Figma for $20 billion, but regulators blocked the deal. Fast-forward to now: Figma finally goes public, and the media frenzy follows.
But despite the excitement, I chose not to invest. Not because I don’t believe in the product, but because avoiding IPO hype has served me better over the long haul.
Let me explain 👇🏾
Lack of Track Record Hurts Reliability 🚫
IPOs, by nature, are new to public markets. Unlike established firms with a 10-year financial trail, IPOs often lack reliable income statements, cashflow patterns, and balance sheet consistency.
You’re essentially buying a pitch deck, not a proven business.
As a doctor, your approach to investing should mirror how you treat patients: evidence-based, not excitement-based.
Everyone Is Selling a Story 🎭
From bankers to founders to social media influencers, everyone involved in an IPO is incentivized to hype the launch.
But hype is not a strategy.
As Warren Buffett says, “In the short run, the market is a voting machine. In the long run, it’s a weighing machine.”
IPOs often attract votes, attention, speculation, hot takes. But that doesn’t always translate to long-term value.
Retail Investors Often Pay Full Price 💸
By the time regular investors get access to IPO shares, most of the early profit has already been scooped up by insiders.
You’re paying retail price for something insiders bought wholesale.
And when the novelty fades, you’re often left holding an overpriced position with limited upside.
IPOs Can Be Liquidity Traps 💀
Shares of newly public companies are often volatile and thinly traded. That means if prices dip quickly (and they often do), you might find yourself stuck.
Getting in was easy. Getting out? Not so much.
Unless you’re truly convinced of the long-term value, it’s not a position you want to be trapped in.
The Exception That Proved My Rule
Back in April 2021, I watched Coinbase go public.
The buzz was deafening.
But the valuation felt stretched. I skipped it.
Many people called me a “naysaying crypto hater” back then. Fast forward to April 2022, the hype had cooled, and so had the price.
That’s when I took a position. Today, that investment is up almost 180%.
Did I get lucky? Maybe.
But avoiding IPO hype, and staying patient, disciplined, and analytical, made all the difference.
So Should Doctors Avoid IPOs Completely?
Not necessarily.
If you’ve done your research, believe in the business model, and are prepared to hold for 5–10 years or more, then maybe an IPO position makes sense.
But in most cases, the best option is to stay out or wait for the noise to settle and reassess with clearer data.
Remember: Excitement is not a strategy.
Better Strategies for Doctor Investors
If you’re a busy medic looking to build long-term financial wellbeing without drama, consider the following instead:
1. Focus on Time in the Market 🕰️
Forget timing the market. The best investors stay consistent and let compounding do the heavy lifting.
2. Maximise Tax-Efficiency 📉
Use your ISA and pension allowances wisely. It’s not just what you earn, but what you keep that matters.
3. Choose Diversified, Low-Cost Funds 📊
Rather than chasing flashy stocks, invest in index funds or ETFs that spread your risk and reduce fees.
4. Know Your Risk Tolerance 🎯
Don’t invest like someone else. Understand your personal risk limits and make sure your investments match your comfort zone.
Avoiding IPO Hype Can Protect Your Peace
Doctors already have enough stress. Your investments shouldn’t add more.
Skipping the latest IPO might not feel exciting, but it will often save you from poor outcomes, sleepless nights, and financial regret.
Let the influencers chase the next big thing.
You? Stick with a plan, stay patient, and keep protecting your future.
Before Diving into IPOs or Shiny Opportunities, Do These
✅ Take the 2-minute Investing Readiness Scorecard
👉 moneywiseinvestor.scoreapp.com
📘 Download the Free Guide: 7 Key Steps to Investing
Understand what every doctor should know before putting a penny into the market:
👉 moneywisedoctor.com/investing
Let’s help more medics stop guessing, and invest confidently.
Discover how doctors assess risk before investing 🔗
Many medics invest without knowing how comfortable they truly are with market swings.
Read: Investing Risk for Doctors: Are You Playing Too Safe or Too Blind?
Ready to get clear on your investing risk as a doctor? Download our free guide and take the scorecard.
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Together, we can build a financially secure future 💼💰