The Investment Scientist

Top 10 Reasons You Can’t Get Rich Buying Facebook Stocks

Posted on: May 22, 2013

It has been one year since Facebook IPO. Most of my top 10 reasons last year arguing against buying FB stocks are still true today. Remember the hype leading up to the IPO, then ponder this line of mine: “The more successful the Wall Street money machine is, the less likely you will get rich.

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The Investment Scientist

Facebook IPO

1. Facebook is a great service to help you keep in touch with friends and family. But a great service does not equal great investment.

2. When was the last time you clicked on a Facebook ad? I can’t recall when I ever did. The click-through rate for Facebook ads is 10% that for Google ads, for good reason. Google ads are delivered at the moment you have actionable intent, while Facebook ads are delivered when you don’t want any distraction.

3. As more and more people use mobile devices to access Facebook, this will present a big challenge since it is nearly impossible to display distracting ads on tiny mobile screens.

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2 Responses to "Top 10 Reasons You Can’t Get Rich Buying Facebook Stocks"

May not get rich, but as sure as day i’ll make money off it!

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Author

Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC. He is also a regular contributor to Morningstar Advisor and Physicians Practice. To explore a long-term wealth advisory relationship, schedule a discovery meeting (phone call) with him.



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