Tuesday, May 15, 2012

Facebook IPO

The much-hyped Facebook IPO is the sort of thing I hope I have learned to avoid.  Sure it may go up and sure it may be a fad like MySpace and Friendster.  It's a gamble, a speculation.  So easy to get burned.  Revenues last year were $1 billion and "they" are talking about a $100 billion valuation, i.e. a P/E of 100.  Yikes!

Going with the crowd is often a good strategy in life, but not in the stock market. Not what I would call an investment.

No comments:

Post a Comment