Mortgage Blog

Why Warren Buffett Does Not investment in Facebook

January 4th, 2013 11:52 AM by Eric Fang

He explained onece why he did not like to invest on Facebook.

His investment strategy is "value investing", and sometimes,
he called "cigar-butt investment strategy". He likes to accumulate
stocks a lot once he found the trading price is way below
the intrinsic value, which allows him to have a margin
of safety. That's why he normal does not lose money.

But for facebook, according to him, it's so complictaed to
calculate the value. And if he does not understand, then
he will not invest.

For the tech stocks, he only invested in IBM. For the tech,
he could calculate the value, but it changed too fast,
from the past a few years, INTC, HPQ, Internet stocks,
can change from "hot players" to "nobody" within a few
months. Not like AMX, KO, PG, JNJ, etc will exist
and dominate the market for a long time.

Posted in:General
Posted by Eric Fang on January 4th, 2013 11:52 AM



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