A: That’s a question I get a lot. We don’t invest in Facebook Inc. (NasdaqGS:FB) because Facebook is a stock best suited for speculators and traders. It’s at 100+ times earnings and has very little going for it other than the hope that social media may pay off, and the illusion that it represents a new way of doing things. Consequently, Facebook doesn’t fit our safety-first mandate.
That said, I know that many readers have money outside the MMR recommendations, including shares of FB and TWTR. If you’re one of them, be careful… there may be more gains ahead, but ask yourself if you could stomach the losses if it breaks down.