The Personal Finance Podcast
The Personal Finance Podcast

Should You Buy Into IPOs (SpaceX, Anthropic, or Open AI)

June 12, 2026

AI Summary

5 min read

"Over the course of his 54 years, he does not think Berkshire has ever bought a single new issue." Warren Buffett’s stance on IPOs is about as definitive as it gets, and it sets the tone for this episode of The Personal Finance Podcast. Host Andrew, founder of Mastermoney.co, walks through the hype surrounding upcoming IPOs from SpaceX, Anthropic, and OpenAI, and builds a case for why the average investor should approach them with extreme caution. The central argument is not that IPOs are always bad, but that the mechanics of how they work—combined with the emotional frenzy they generate—make them a poor fit for most disciplined, long-term portfolios.

The Mechanics of an IPO: Who Really Wins?

An IPO, or initial public offering, is a sale. And in every sale, there is a seller and a buyer. The seller is typically the company’s founder or early venture capital investors who have waited a decade or more to cash out. The buyer is the public. Andrew emphasizes that the first thing an investor should do is read the S1 filing, specifically the "use of proceeds" section. If the money is going toward growth and expansion, that’s a reasonable reason to go public. But if the primary purpose is to cash out insiders, that is a red flag.

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What you'll learn

  • 1 (00:56) **What an IPO Actually Is** - Andrew defines an Initial Public Offering as a sale where a private company sells shares to the public, explaining who the typical sellers are (founders, venture capital investors).
  • 2 (03:28) **The Hype Around SpaceX, Anthropic, and OpenAI** - Andrew acknowledges these companies have massive moats and could shape the future, but warns they are still speculative and risky.
  • 3 (05:13) **The Retail Access Problem** - Explains that regular investors almost never get the actual IPO price; big institutions get the price, while retail gets the first-day trading pop at a higher price.
  • 4 (06:59) **Mechanic #1: The Float** - The number of shares available to trade on day one is often very small, creating a supply-demand imbalance that drives prices up artificially.
  • 5 (08:26) **Mechanic #2: The Lockup** - Institutional investors must hold shares for a typical 90-180 day lockup period, preventing them from dumping the stock immediately.
  • 6 (09:13) **The Uncomfortable Base Rate Data** - As a group, IPOs tend to underperform the broader market over 3-5 years, despite notable outliers like Amazon or Tesla.
  • 7 (09:49) **Warren Buffett's Take on IPOs** - Andrew reads quotes from Buffett, who says Berkshire has never bought a new issue in 54 years, comparing IPOs to a lottery where the seller picks the timing.

+ Full timestamped outline available in the app

Show Notes

SpaceX. Anthropic. OpenAI. Everyone is talking about investing in these IPOs. Here is what Warren Buffett would say and what you need to know before you touch any of them. 


👉 Join Andrew's FREE Masterclass The Portfolio Pyramid:   https://event.webinarjam.com/q05p7/register/q05p7b65?webinar_id=24 


What You'll Learn in This Episode


  • What an IPO actually is and why the seller always has the advantage over the buyer
  • Why most retail investors never get the real IPO price and end up buying the hype instead
  • The two mechanics every investor must understand before touching any IPO
  • Why Warren Buffett has not bought a single IPO in 54 years and what that means for you
  • When SpaceX, Anthropic, and OpenAI will actually show up in your index funds automatically
  • The four questions to ask yourself before investing in any IPO
  • Why buying an index fund might be the smarter play than chasing the IPO hype


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