The WSJ published today another excellent Intelligent Investor column by Jason Zweig. Today’s piece was on the lure of high-growth, publicly-traded companies (“Glamour Stocks” as Lakonishok, et al. described them) and the probable investor disappointment with Glamour Stocks’ returns. Today’s example was Facebook. I like how Jason worked in the St. Petersburg Paradox and gave an excellent example of “inverting” the analysis to see if Facebook’s rumored valuation seemed reasonable.
http://online.wsj.com/article/SB10001424052970204662204577200862677176998.html?KEYWORDS=zweig
Here Jason talks about the column:
