Monday, January 07, 2013 10:35:03 AM
Well, the valuation of Facebook was definitely not based on hard financial facts like earnings, cash flow, enterprice value etc.
It was based on assumptions on the growth rate or business potential. (looking into the glass sphere again). I am still shocked and amused at the same time that people invest in a company, with a price-to- earnings value of 100
.
Anyhow, as long as valcom does not issue (revised) financial reports, this is a risky game with real money, and I am still in.
However, the rest of my portfolio is filled with fundamentally strong (after B. Graham and Buffett) companies, even though the annual return is only in the 10-15% range (average), but not in the x00% range.
Best regards
It was based on assumptions on the growth rate or business potential. (looking into the glass sphere again). I am still shocked and amused at the same time that people invest in a company, with a price-to- earnings value of 100
. Anyhow, as long as valcom does not issue (revised) financial reports, this is a risky game with real money, and I am still in.
However, the rest of my portfolio is filled with fundamentally strong (after B. Graham and Buffett) companies, even though the annual return is only in the 10-15% range (average), but not in the x00% range.
Best regards
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