At the start of 2000, investors couldn't get enough shares of IPOs. But by the end of the year, few would touch them with a 10-foot pole. Yes, newer issues are generally more speculative than other stocks. Sticking to firm loss-cutting sell rules largely takes care of that problem.
Few stocks rise during bear times.
But when the market turns, high-quality stocks that recently made their debuts soar far above the best blue chips. They speed up traffic along the Internet. The company was born in 1979 but didn't turn public until 1997. Among 94 chip firms, the average IPO date was February 1994. Next, look at how it rates.