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Planning On Investing
Current Winner
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Not A Good Investment
Current Winner
I was planning to invest in facebook but after warren buffet came out with a statement that he wont be investing, I am having second thoughts.
Groupon is a failure after it went public will the same happen with facebook?
I think Facebook has too many users and is too well-integrated into our daily lives to write it off like Groupon or other failures. If people were abandoning it in droves, I would have second thoughts. I think the main risk to Facebook is posed from new regulations or Internet policies that may affect how people use the Internet. At the moment, I think it is on decent footing to do well.
I think his reluctant posture regarding the IPO has to do with the excessive hype circulating around it. Too many average Joes thinking they're going to make some money.
I wouldn't base your investment advise entirely on what Warren Buffet says. I think I read an article saying he was short silver a few years before it retouched its all-time high last year. That said, I'm also not saying you should go out and buy Facebook, necessarily. I'd be hesitant to put a lot of money into it, just because the valuations that are being thrown around are so many multiples of earnings. You need to look at what's best for you and do your own due diligence.
I would never invest in stocks ( or atleast go long on it) that is based on an industry of frivoulous people's whim's and fancies. I would rather play conservative and buy infrastructure stocks or invest in an company which I know is not completely dependent on just people's wish.
Well, you've been proven right on the Facebook IPO.