Investing

When US investment guru Warren Buffet says he wouldn’t go near a particular stock, you take notice.

Facebook is one of those stocks he despises. He’s a “value” investor who likes to buy stocks which other investors hate and which have had their prices slashed to below what he believes is fair value.

Facebook was the antithesis of what he believes a good investment looks like and we can all learn from his strategies. He doesn’t like Facebook because;

. He doesn’t understand how the business model can make big revenues.

. The founders are selling out when it suits them not investors.

. The enormous hype inflated values and expectations.

Because of the hype, Facebook founders offered more shares at a higher price than originally planned.

It listed at $38 and at the end of its first day it closed at the same level despite predictions of big early profits.

You can’t help but think the only winners are the founders cashing in.