‘The four most dangerous words in investing are, “it’s different this time”.’
At least that’s according to the wisdom of the late Sir John Templeton, American-born British investor, banker, and fund manager.
Sir John’s words may be resonating with many in the investment community given the recent boom in coverage of Special Purpose Acquisition Company (SPACs), so much so they may seem as novel as non-fungible tokens (NFTs… the latest investment craze of 2021) even though SPACs themselves have been around for twenty years.
Simply put, a SPAC is a company with no commercial operations that is formed strictly to raise capital through an IPO for the purpose of acquiring an existing company.