Are You Creating Or Destroying Value?

Morgan Stanley studied all high technology IPOs in the USA from 1980 to 2002. During that period over 1705 IPOs occurred, creating $1.6 Trillion in shareholder value.

However, virtually all of that value was generated by only 5% of these IPOs. 25% of companies actually destroyed shareholder value and 31% failed to generate any incremental value post-IPO. A further 39% were either acquired or produced marginal value for their shareholders.

Source: Morgan Stanley, "The Technology IPO Yearbook - 22 Years of Tech Investing", 8th Edition, March 18, 2002