Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Is Facebook a classic Warren Buffett value investment?

Market Insanity

Will WhatsApp Destroy Facebook (NASDAQ: FB)?

WhatsApp proves that Facebook is a mess. However; value investors should examine the Social Network, because Facebook is a mess that makes a lot of money.

For all its faults, Facebook is still a moneymaking machine par excellence. Facebook generated $11.552 billion in cash and equivalents and $30.757 billion in short-term investments during 2nd Quarter 2018. That gave Facebook an astonishing $42.309 billion in cash and short-term investments on June 30, 2018.

Is Facebook a classic Warren Buffett value investment? Uncle Warren loves to invest in moneymaking companies “that somebody’s idiot nephew can run.” Surprisingly, Facebook might fall into that category.

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