Poll: Private Public Lives 🕵

Table of Contents

Poll: On Air

“Which private company do you most wish was public?”

  • 50%   IKEA. It would help furnish my portfolio
  • 26%   Mars. It would sweeten my portfolio
  • 8%:    Cargill. It’s the biggest PrivCo out there!
  • 8%     Ernst & Young. Accountants need to be accountable
  • 8%     Koch Industries. Don’t knock it

For the record, a public company is a company that’s chosen to list on a stock exchange. A private company is a company that’s chosen not to list on a stock exchange. Simples!

By a landslide, the Invstr community wants the world’s largest furniture store, IKEA, to join the Stockholm stock market! It was founded by a 17-year old named Ingvar Kamprad who, in the forties and fifties, didn’t see big Swedish prospects in going public.

Then there’s Mars, the candy brand behind Twix, Milky War, M&Ms, and countless other food brands. Having been around for over one hundred years, most investors assume that if Mars wanted to list on a stock exchange, it would have done it already.

Actually, the company’s chairman is a never say never type. However, for now, he admits he does like being able to fit all the company’s shareholders in one room.

Beyond Mars in our poll, though, it’s a three-way lockout! Agricultural firm Cargill, the largest private company of all, has weathered numerous calls for it to stage an initial public offering (IPO). The Koch brothers’ chemical conglomerate bats away those same cries with $115 billion revenues, and Ernst & Young also resolutely says “no” despite ironically providing transaction support for IPOs!

Alas, all of these companies remain exclusively owned and controlled by decedents of their founding fathers. So, why won’t they allow us onboard?

A business owner opts for privacy when they don’t want to sell their stake for instant funding, keen to protect their economic right to long-term profits. Their financials are kept under wraps, their every move isn’t analyzed by market pundits, and their quarters aren’t spent trying to appease the impatient. IKEA, Mars, and co. are also saving extra costs by not listing on a stock exchange.

Not only that, but these firms have all matured. Nearing its full growth potential, Mars already owns a good chunk of what’s in your local superstore. Ernst & Young employs 270,000 people, and Koch Industries turns eighty years old in February. These are not young, disruptive growth start-ups. They wouldn’t be able to create much value with the billion-dollar influx received from an IPO.

Some entrepreneurs start their new ventures with the sole ambition of debuting their firm on a stock exchange one day, selling out, and riding off into the sunset. Quickly departing insiders is a red flag for many investors, but every stock market success story has to start somewhere, right?

Share:
More Posts
Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.