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Why do people buy FB if its price isn't justified by P/E?
03-30-2014, 02:36 PM
Post: #4
john Offline

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Joined: May 2012
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1) Why should P/E of 20 apply throughout time? In the early 80's you could get 10% on risk free bonds and now you can get 2% on risk free bonds, but P/E =20 rule applies in both situations?

2) Why should you ever apply some backward looking metric to a fundamentally growth oriented investment?

3) FB is a story stock. If you believe one story it is worth $50. If you believe a different story it isn't worth even $0.50. I personally believe story 2, but I think the whole concept of FB is stupid and lots of people disagree with me.
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Messages In This Thread
[] - Richard K - 03-30-2014, 02:11 PM
[] - icpooreman - 03-30-2014, 02:24 PM
[] - John - 03-30-2014 02:36 PM
[] - BDary2 - 03-30-2014, 02:48 PM

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