As Facebook nears it's IPO, the buzz is deafening. One can hardly go a week without hearing an updated valuation based on the price that shares have been trading on a private exchange.
Enter Warren Buffett, the value guru who famously eschews technology. For example, check out Berkshire Hathaway's website
Bloomberg: Warren Buffett, the billionaire stock picker and takeover specialist, said investors should be wary of valuations for social networking websites as some of the industry’s biggest startups prepare for initial share sales.“Most of them will be overpriced,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said today... ”It’s extremely difficult to value social- networking-site companies,” he said, without specifying companies. “Some will be huge winners, which will make up for the rest.”
Paul Kedrosky concurs in Dear Warren: Here are the Overvalued Social Networking Companies
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
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