I must have had a dozen calls the other day. I could hear the excitement in their voices, too. “Rick, should I buy Facebook?”
Facebook was all anyone was talking about. In fact, people were cashing in their kid’s college accounts to buy Facebook. So, did I buy Facebook? Heck no.
Here’s why…
First of all, I’d never buy a stock based on “hype” or emotion.
Second, Facebook has no track record. It’s too risky.
I only trade stocks that have a proven fundamental and technical track record. This way, I can make sound decisions based on known criteria.
Perhaps someday Facebook will meet my checklist parameters, but it surely has not been vetted yet.
I’ll sit back and wait.
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