Should have bought the car. And not the shares.
Readers will recall W&D's alert in October about the upcoming IPO (Initial Public Offering, or 'float') of Ferrari, a motor vehicle manufacturer. Well, the company was floated at a price of $52 per share in October. The demand was massive.
And on the first day of trading the stock bounced to $60.97, a 17.25% stag. Nice work, if you can get it.
Now the flat tyre. The share price is down to about $35. That's a 43% share price collapse.
W&D remembers that part of the IPO sell-spiel was that, '9 of the 10 most expensive cars ever sold are Ferraris'.
But Ferrari shareholders didn't buy the cars. They bought the shares.