Login | July 21, 2026
IPOs: Yea or Nay?
Motley Fool
Published: July 21, 2026
Q. Are initial public offerings (IPOs) good investments? -- H.S., Santa Maria, California
A. Sometimes, but many times, they lose investors' money. Usually, it's well-connected or wealthy investors who get to invest in an IPO at its initial price. Most others will have to buy shares once they start trading -- often at much higher prices, as many IPO shares rise quickly in their first few hours or days.
Consider Groupon, which had its IPO in 2011 and saw its shares climb almost 31% on their first day. Fast-forward to mid-2026, and the stock was recently down 97% from its all-time high two weeks post-IPO. There are successful IPOs, too, of course, such as Nvidia's.
Q. What's a "current ratio"? -- J.D., Portsmouth, New Hampshire
A. It's a way to assess how much liquidity a company has -- how easily it can convert assets into cash. The ratio is calculated by dividing current assets by current liabilities, both of which you'll typically find listed on the company's balance sheet.
The current ratio reflects whether the business has sufficient short-term assets (such as cash and expected incoming payments) to cover its short-term obligations (such as payments due). A more precise measure is the "quick ratio," as it subtracts assets harder to convert to cash -- such as inventories and prepaid expenses -- before dividing by current liabilities.
Both measures ignore long-term debt and assets, such as the value of production plants and equipment. When evaluating any company, be sure to assess other factors, such as revenue and earnings growth rates, profit margins, inventory levels, competitive advantages and valuation metrics. Learn more about evaluating and investing in stocks via the "How to Invest" area at Fool.com.
Fool's School
Paying Off Your Mortgage Early
Paying off your mortgage early may seem like a no-brainer move, especially if you're retiring soon or are already retired. But don't rush into it -- there are solid reasons to keep paying off that loan gradually, and you should at least consider them.
First, if you pay off your home loan by making hefty withdrawals from your bank accounts and perhaps selling off stocks in your brokerage accounts, that could leave you in a weaker financial condition. You might be free of the mortgage, but you'll have much less in your financial accounts; should you suddenly need money, you might end up in trouble. Also, you'll have shifted a lot of value from your various accounts into your home: If you need cash, you can't simply or easily sell off a chunk of your home to raise those funds. You'd have to either sell the entire house or take out a second mortgage -- a home equity loan or a home equity line of credit (HELOC). And then you'd owe interest again -- perhaps at a higher interest rate.
Also, moving money from investment accounts into your home will leave you less able to invest for retirement or other long-term goals. Interest rates matter, too: If your mortgage interest rate is, say, 4%, every dollar you use to pay off that loan is like earning a guaranteed 4% return because you won't have to pay 4% on it. But if you invested that money in stocks, and earned an average annual return of 6% or more, you'd come out ahead. (Stock market returns are not guaranteed, of course.)
Then there's taxes. If you itemize deductions on your tax return and they total more than the standard deduction, the mortgage interest you paid can help shrink your tax bill.
Weigh all the pros and cons before deciding what to do. You might compromise by making some extra payments on your loan to pay it off sooner.
My Dumbest Investment
Financial Advisers
My worst financial decision was employing the services of a financial adviser. -- W.O., online
The Fool responds: That's too bad, as many people seem to have better experiences with financial advisers than you. The 2026 State of Retirement Planning study from Fidelity found that 3 out of 4 respondents valued "professional guidance for family conversations about retirement wishes." A 2024 Vanguard survey found "Whether they work with a human financial adviser or a digital-only adviser, 86% of advised investors report having more peace of mind related to their finances as a result of advice."
A good adviser can be invaluable at turning points in your life, such as when you get married, have kids, want to buy a home, get divorced or need to do some estate planning. They may cost more than you'd like to pay, but they can more than make up for that by ensuring that you're investing effectively and have all your financial ducks in a row. We especially like fee-only advisers, and you might find one near you via NAPFA.org or GarrettPlanningNetwork.com. Also, make sure your adviser is a fiduciary, someone who is ethically bound to put your best interests first.
(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)
Foolish Trivia
Name That Company
I trace my roots back to the 1899 founding of the S黍 Paolo Tramway, Light and Power Company in Brazil. By 1940, I was supplying two-thirds of Brazil's electricity. By the 1960s, I was buying physical assets (real estate, natural resources and infrastructure). Today, with a recent market value just under $100 billion, I'm a major international investment company specializing in asset management, wealth solutions and a range of operating businesses spanning energy, infrastructure, private equity and real estate. I've delivered annualized returns of more than 15% to shareholders for over 30 years. Who am I?
Last Week's Trivia Answer
I trace my roots way back to 1853, when the inventor of the elevator safety brake sold his first elevator. In 1854, he had P.T. Barnum demonstrate it. In 1900, I introduced my moving staircase at the Paris World Fair. Today, based in Connecticut and with a market value recently topping $27 billion, I'm a dominant global elevator and escalator specialist. I move some 2.5 billion people daily and maintain about 2.5 million customer units. My elevators have been installed in structures like the Eiffel Tower, the Washington Monument, the Empire State Building and Seattle's Space Needle. Who am I? (Answer: Otis Worldwide)
The Motley Fool Take
Viva Veeva
Veeva Systems (NYSE: VEEV) designs cloud solutions for life sciences companies, a niche where it's a leader. It's embedded in the day-to-day activities of some of the top life sciences companies. It also has a competitive advantage, as it's not easy for its clients to jump ship, at least not without risking business disruptions.
Veeva has hit significant challenges over the past few months, with many investors increasingly fearing that competition will erode its market share. The company's stock was recently down more than 45% over the past year -- making Veeva Systems' shares now look more attractive for long-term investors.
For one thing, the company continues to add new customers to its ecosystem, and as of Jan. 31, it boasted 15 of the top 20 biopharma companies as its clients. Veeva is also investing in ways that could pay off down the road, notably in artificial intelligence (AI). Veeva Systems has launched Veeva AI, an initiative allowing agentic AI tools that can boost productivity by fast-tracking and automating tasks such as reviewing clinical data and ensuring regulatory compliance.
Veeva Systems' shares look cheaper than they have in a while, with a recent forward-looking price-to-earnings (P/E) ratio of 17, near multiyear lows. (The Motley Fool owns shares of and recommends Veeva Systems.)
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