The Facebook Bubble

[BargainValueHunter]

I was VERY familiar with San Jose, CA (or "The South Bay" AKA "Silicon Valley") from 1994 - 2000.

 

I remember much talk of "gonna be huge" and "potential" regarding THOUSANDS of so-called companies.

 

Now I know Facebook is not Pets.com but remember THREE things:

 

1) The future is invisible.

 

2) "Potential" probably shouldn't be a large part of a value investor's analysis ESPECIALLY when the company exists EXCLUSIVELY as massive sets of 1s and 0s.

 

3) Teens and college student's tastes change REAL QUICK.

 

Again, Facebook is not Pets.com, but its not exactly Coca-Cola in 1925 or Phillip Morris in 1950 either.