Should you invest in Skims?
As of this writing, it's not possible to invest in Skims unless you're an accredited investor. However, if the company goes public, you can buy shares through your brokerage account.
Bear in mind, though, that while you can request shares from your broker at the IPO price, you may not get the number of shares you request -- or any at all. Brokers often receive a limited number of IPO shares and reserve them for institutional investors and high-net-worth customers.
If you cannot get in on Skims' actual IPO, you'd need to wait until the stock starts trading on a stock exchange to purchase shares. Just be aware that investing in companies immediately after their IPOs is risky because there's less information available than for well-established publicly traded companies, and you could wind up overpaying due to hype.
Here are some reasons you might want to add Skims to your portfolio if the company does, in fact, go public:
- You're a fan of Skims' products.
- You already have a diversified investment portfolio but want additional exposure to the retail industry or the consumer discretionary sector.
- You plan to hold the stock long-term and wouldn't lose sleep if the price tanked in the short term.
- You believe the company has a strong competitive advantage and the potential to deliver market-beating returns.