Facebook share washout shows individual stock-picking is a mug's game
Facebook (FB) shares closed at $20.88 a share yesterday, 45% down from its initial public offering (IPO) price of $38 a share. The stock was valued at about $72bn on May 18, 2012, when the social media service went public, but about $32.5bn of that value has gone up in smoke. Come November, insiders will have a chance to sell their shares putting more pressure on the price. The Facebook saga is the latest evidence that individual stock-picking is a mug's game. When fund managers rarely beat broad based indexes, what chance have amateurs?
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