Hi Michael Benjamin Graham wrote in his book The Intelligent...

Hi Michael

Benjamin Graham wrote in his book The Intelligent Investor that "our one recommendation is that all investors should be wary of new issues"

Two reasons:

1. "New issues have special salesmanship behind them". A good example is Dick Smith's prospectus. Note the pretty pictures and bullsht phrases such as "leading retailer", "superior omni-channel offer" and "robust growth strategy". All supported by highly paid professional advisers.

2. "Most new issues are sold under favorable market conditions - which means favorable for the seller."