Two of the most amateur stock market dabblers I know have told me that there is “no way” buying Facebook can lose money. Their plan is to use all their savings and retirement money to buy Facebook stock when it IPOs, with the idea of either buying and holding or flipping it depending on its performance in the initial days. Ah, what the great American dream has become.
Well, here’s a great chart:
I should note that this post is meant to be a critique of one-way thinking and not necessarily investing in Facebook. These investors to which I refer have a history of thinking there’s no way a given trade can go against them. That’s terrible thinking, regardless of what the thought is.