How an Unprofitable Company Went Public with a $60 Billion Market Cap | AWM Insights | Financial and Investment News

Some of the biggest financial and investment news from the last week includes DoorDash – a food delivery service – reached a $60 billion market cap, even though the company isn’t currently profitable. Will it get to profitability? Why are IPOs like this and AirBnB ending up with such unexpectedly huge valuations? This week, Brandon Averill and Justin Dyer discuss these high valuations, break down the 3 categories of market returns, and outline why now could actually be one of the most dangerous times for a new investor just starting out. Episode Highlights How to be a good investor (1:09) Watch where your information is coming from (3:04) "If something is possible to know, you're better off not being very smart because smart people fool themselves into thinking they know, while average people are more likely to say, I don't know and up end up closer to reality." Psychology of Money by Morgan Housel Should you buy Tesla? AirBnb? (4:52) Skill vs Luck in investing (5:21) The 3 categories of market returns (5:38) Why this is a dangerous time for investors just starting out (8:07)