In Picking Facebook Shares, Repeating the Mistakes of the Past – NYTimes.com

In Picking Facebook Shares, Repeating the Mistakes of the Past – NYTimes.com.

Nader Nazemi-Faceboo-Debacle-Retail Investor-Loss-Wall STreet-Nader Nazemi

In hindsight

I completely agree with this piece. There seems to be a persistent campaign to take money from individual investors and to put it into pipe dreams that never come true. Even to think that individual investors have a chance against the MEGA Investment Banks is a joke. The individual investor is outnumbered in wits, insider information and access to data not even the management of the companies have. Facebook was a garbage company with no real source of revenue, essentially myspace with more hype. And of course Zuckerberg it tasting the his comeuppance for stealing Facebook’s idea from others. Typical behavior from Zuckerberg. To steal something and claim it as yours. 

Since the implosion of the dot-com bubble in 2000, retail investors have been rightfully wary of the stock market. Facebook was going to change it all, bringing the ordinary investor back.

Nader Nazemi-Mark Zuckerberg-Faceboo-Debacle-Retail Investor-Loss-Wall STreet-Nader Nazemi

Laughing all the way to the Bank

Instead, Facebook was a massacre for retail investors, highlighting yet again why stock picking is a loser’s game. The hype around Facebook was enormous as retail investors salivated at the chance to buy what they hoped would be the next Apple. Yet, after initially trading above $40 a share, the stock is now down nearly 43 percent from the initial offering price.
The Facebook example is one more confirmation of studies that have shown that, on average, individual investors lose out consistently when they buy and trade individual stocks. They’re better off investing in passive index funds.
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2 thoughts on “In Picking Facebook Shares, Repeating the Mistakes of the Past – NYTimes.com

  1. I think the decision to not buy Facebook at the IPO was a no brainer.It was hard to arrive at an idea of the income
    I heard a lot of noise pre -IPO targeted at getting HNIs to take a stake.I was wary at the stage because bargains are hardly ever likely to be found at auctions.
    However I think its too early to altogether write off Facebook.It might survive yet,just be a lot less valuable than people initially believed/

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