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Investing in facebook on its first day? - Printable Version +- Twitist Forums (http://twitist.com) +-- Forum: Facebook forums (/forum-14.html) +--- Forum: Facebook Marketing (/forum-12.html) +--- Thread: Investing in facebook on its first day? (/thread-15319.html) |
Investing in facebook on its first day? - Dwight - 10-15-2012 09:30 PM As many people know facebook is going public this friday. My portfolio has already grown a little, but this might be the only time a major corporation is going public for while. I was wondering if it is wise to invest in it on its first day. Moreover, what time of the day should I invest in it or what patterns to follow? I have the ability to set up a basic limited stock where I can set up a buy exactly when the market opens at whatever price I set. What is a good price or lower should I set if I invest right as it opens? - John W - 10-15-2012 09:38 PM Irving Fisher in his 1930 book "The Theory of Interest" and John Burr Williams's 1938 text "The Theory of Investment Value" established that a value of something is the summation of all the cashflows discounted to a present value by a discount rate. Knowing that, if we take what we know of Facebook's future earnings into account we have a value of $0. So there's your starting point. The prices are going to be driven by behavioral economics for some time and won't be anywhere close to a reasonable value. - coraann - 10-15-2012 09:38 PM Follow the advice of your stock broker. Isn't that what you pay him for? - JoeyV - 10-15-2012 09:38 PM 1) Who has a stockbroker that offers advice? 2) Why would anyone listen to the advice of a stockbroker? 3) John W is full of poop again. - raysor - 10-15-2012 09:38 PM Don't follow the advice of your stockbroker. Even though he is a professional with maybe many years of experience and knowledge of investments and markets. No, follow someone here on Yahoo, much more sensible. |