Thursday, May 10, 2012

Facebook IPO - Did you makeup your mind yet ?

Facebook IPO - Going live in a week,  what is that have to do with you ? You must be  curious george as me, be part of the hype or stay away from the burn...

Facebook: My  version:  A popular dot com for social activities, famous for wall, concept got popular when friends could write on each others wall and other friends in the list would know what is going on with others, because other friends knew what's going on, their friends wanted to be your friends, as this multiplications started, facebook developers thought to put a suggestion from their end, Hey!! add this guy/gal you might know her and this became a big hit with users joining referring each other. Totally forget the most popular feature is Facebook does not strictly keeps track of user activity,  who viewed your profile , how many times ?

History on Google IPO:  Popular search engine provider when started, people had a very strong skepticism, how will they make from search engine alone, so as the time speaks we now see google is leaps and bounds ahead in everything and anything, so who is the winner here, always the casino wins, so skeptics loose again. 

Facebook IPO : where there is Juice(Money), There are ants., one old saying in India converted to english.

Dealing with billions, when they can acquire that much, the operating expense, maintaining servers with work force management is the only major expenses.

  • Will attract half of the staff from major search engine
  • Acquistions, mergers, patent buying, online sales,app development

Facebook  Advantage :
 Millions of users, demographic user base :: young crowd with lots of time, life is facebook for people who are constantly updating their personal activities from announcements.,  demographic base is strictly for fun crowd, so if you are one of the facebook users who said, I stopped facebooking, you are not alone, but Facebook is not for those who could not use it to the fullest.

  • Branchout derived from Facebook (Job networking site) (Similar startups utilizing FB)
  • Online game players (Farmville, few)
  • Events, groups, business promotions, single user sign integration to any application

Facebook  Dis-Advantage :
  1. New competition site with enhanced privacy protection
  2. Previous networking sites history
  3. Management - very early to say they have best management or not

Facebook  (BUY-HOLD-SELL)  :  I will say to myself Buy if it's in the range of  IPO pricing...,
I am not promoting Facebook, so you make money you keep it, you loose money you caught a falling me..:) ---

 Let me do this last, May 10th 2012, this write up is pre IPO .... so just don't go bananas, It's personal opinion, if you are reading after Post IPO and you made tons of regrets already for not buying or over buying ...





Sunday, March 18, 2012

Buffet invests in Bank of America - 5 Billion dollars August 25 2011 Now its March 19 2012 Money is doubled

Mr. Warren Buffett , what makes this man so special, every investors living inspiration on how to follow the rules he always follows.

Let's get this clear.

  1. Invest when people are scared 
  2. Sell when people are buying
  3. Invest in the legacy of the product
  4. Invest in management
Point 1 :
He bought Bank of america and GE shares (5Billion dollars BOFA, GE- 7 Billion dollars) When world was treating these companies as trash, all the pundits in news channels are shouting don't go there never look into these banks, they are loosing money more than they are earning .... basically blah, blah, blah .... which registers in every mind as don't buy these infested companies.

while having sun bath, he gets a thought  to do it ... wow!!  I wish I can borrow his shower  head ...

He keeps selling, when everyone is happy about buying .. no one gives a haineee ..on what he is doing when things go right ... typical, I am feeling richer affect ... when in reality they are pouring money for another investor like Buffett..

Legacy of the product, Hey!!! him and coke are two synonyms, he drinks coke and shows off to the world that he is drinking coke, he has been doing that from the day he invested in coke, before he invested in Coke, he never gave a haineee... to it... , I am getting laugh myselves writting about his haineee..... Jokes apart, he carries his investment along with him and make sure he orders his product, how many of the current investor totally believe in the share that we put in, I watch Jim Cramer's MADMoney ... have heard questions from investors, are you going to follow him blindly ... he might be right, but not all what he says might be correct ... Legacy of the product.... I missed the bus for coffee stocks, I guess search out for some of those java stocks which gives dividends and have huge potential in long term.

Good example, My favorite dialogue from movie "Forrest Gump', which he says , my friend booba invested in a fruit stock which made me a "millionaire" , it was so spontaneous I laughed at the dialogue thinking as a joke, Hey!!! that was a message for an investor that time and this time , Forrest Gump was released in 1994, even some one out of curiosity bought apple stock say even 100 of them would have been a quarter  millionaire atleast.
Good example for defining, investment in management.

Guys, I wrote this to remind myselves these points, I have evolved so much as an investor, I would love to share some of experiences with you all .. Make lots of money ... it's out there ..

Best Wishes