Margin of Safety » St. Petersburg Paradox http://amarginofsafety.com "...to distill the secret of sound investment into three words..." Fri, 26 Jun 2020 18:44:00 +0000 en hourly 1 http://wordpress.org/?v=3.2 Jason Zweig’s New Column on Facebook’s Valuation http://amarginofsafety.com/2012/02/04/jason-zweigs-new-column-on-facebooks-valuation/?utm_source=rss&utm_medium=rss&utm_campaign=jason-zweigs-new-column-on-facebooks-valuation http://amarginofsafety.com/2012/02/04/jason-zweigs-new-column-on-facebooks-valuation/#comments Sat, 04 Feb 2012 20:34:44 +0000 Ray Galkowski, CFA http://amarginofsafety.com/?p=1266 Continue reading →]]> 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:

 

 

 

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