fbBarron’s Said Facebook Worth $15 in 2012

For those of you who think following stock tips from people you know, stock market gurus or reputable financial publications is a good strategy… THINK AGAIN! Check out this article from Barron’s back in 2012.  20 days before the article was written Facebook hit an all time low of $17.55. It is currently at all time highs at $133.50.

Too lazy to read the whole article? Here let me list some quotes to highlight their points.

  • “Is the stock a buy? The short answer is No.”
  • “What are the shares worth? Perhaps only $15.”
  • “…the shares trade at 50 times earnings. At $15 they’d still be valued at a rich 35 times earnings.”
  • “Connect with your friends on Facebook. Stay away from the stock…”

Ok I think I made my point. Please always honor your stops, always do your due diligence and never NEVER be stubborn with a trade or you will lose BIG in the stock market.

Below is a video I did showing you what happens to you when you follow stock market guru alerts. Although, I like Barron’s the video applies to them as well if you decide to blindly follow.

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