Warren Buffett Won’t Be Buying Facebook Stock
Facebook will be attracting several investors with its IPO on Monday but Warren Buffett won’t be one of them.
Buffett said that there are other places he would rather put his money. Buffett said:
“We never buy into an offering… The idea that something coming out…that’s being offered with significant commissions, all kinds of publicity, the seller electing the time to sell, is going to be the best single investment that I can make in the world among thousands of choices is mathematically impossible.”
Buffett’s business partner Charlie Munger also said that he was steering away from the Facebook IPO. Munger, was a little more blunt about his reasoning. Munger, who is 88-years-old, said:
“I don’t invest in what I don’t understand. And I don’t want to understand Facebook.”
Munger also said that he just isn’t a fan of Facebook. Munger said:
“I don’t want people putting all this personal stuff into a permanent record when they are 15 years of age. I think it’s counterproductive. I just basically don’t like it.”
But that doesn’t mean that Munger and Buffett don’t think that Facebook will be successfull. Buffett said that he didn’t want to take anything away from companies like Facebook, Apple, and Google, but said that he couldn’t predict where those companies would be in 10 years.
“I would not short Facebook. I would not short Google or Apple. They’re all fantastic companies. But in terms of what they’ll be worth in five or ten years, I just don’t know.”