Buffett says such sites will be overpriced.
When someone like Warren Buffett speaks, you outta listen. Buffett, one of the richest man in the world and a genius investor, has warned investors against pooling in money in social networking sites, terming them as “overpriced”.
“Most of them will be overpriced,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said today in New Delhi. ”It’s extremely difficult to value social- networking-site companies,” he said, without specifying companies. “Some will be huge winners, which will make up for the rest.”
Though he avoided taking names, his comments come soon after Facebook was valued at $85 billion, and Twitter at $5 billion.
Buffett has always been hesitant investing in technology, rather opting to to put his stake in industrial, financial and consumer-goods holdings. Despite the fact, and he will have his naysayers, we are sure his comments will not go ignored.