Before i could advise her not to, she went and bought 30 shares.
I bought 30 shares at $38 because I wanted to, i wanted to be a part of facebook. I'm going to hold it. Cramer said (she watches him religiously) not to buy it until later, but overall he thinks people should own facebook (this true?). I will buy more if it goes down.Me: don't buy these stocks that are so popular. Don't get burned.
Her: Oh. I think it's going to go way up. can't wait to see what it does tomorrow
Anyone out there want to volunteer to be my moms financial advisor?
update 10/2017: my mom sold it at $98 / share ("didnt want to get greedy"), made $900 on 30 shares
It's only a $1k bet, cain't hurt.
my mom's thought exactly, abdel you're such a charmer
Send my best regards to Madame Louis. Clearly, she is a genius.
Andy's Mom,
please don't!
Thank You
show her this graph, it definitely freaked me out a little..
http://www.ritholtz.com/blog/2012/05/graphic-comparing-fb-with-other-te…
Dear Mrs.(?) Louis,
Hold onto what you have, do not buy more if it goes down, also dont sell if it goes down (obviously u weren't considering this though since you wanted to buy more). Do, however, consider selling if u get a nice healthy gain, cuz that wud most certainly not be sustainable.
Regards, The GoldmanBallSachs
haha my mom: "what kind of name is goldmanballsachs?!"
Andy, I can certainly relate. And while I'm writing this, I'm watching an ABC news item about Marc Zuckerberg's wedding to his longtime sweetheart. What a week he's had! It begin last Monday when billionaire Zuckerberg celebrated his 28th birthday, on May 14. My birthday is May 14 as well. I'm also married...Now all I need is the billion dollars.
My aunt purchased 200 shares, or roughly $8000 worth of Facebook Stock. She has since been calling me, asking why the stock hasn't jumped to $65 or $75 the way LinkedIn did. I'm not even sure how to approach the situation, shes adamant in her investment.
OP I would call your mom right now and tell her to not ever watch Cramer again and never to take any investment advice seriously from CNBC. They are not on your side.
ask her if she knows what valuation or shares actually are...then when she stares at you blankly, plead with her to take her $s and at least put some of them into Goog, Apple or Amazon as well if she wants to buy tech.
and again, show her this chart: http://www.ritholtz.com/blog/wp-content/uploads/2012/05/FB-IPO1.png and ask her what that looks like...(hint: bubble).
In order to justify a $104Bn valuation, FBs earnings growth has to be incredible...ton of downside, not much upside at this price. If it shoots to $50 for no reason in next few weeks I will put my $ where my mouth is and buy some puts. If it drops to $25, I will buy $5k worth for long-run "just-in-case" they find a brilliant way to monetize their users. I think it hits $32/share this week and the day it breaks $38 will close at $29. (WHEN the banks stop supporting it at $38)
well... like someone else said previously, its 1k with maybe 500 max loss in the near term. just buy her a present or something if shes upset.. we all work in finance for a reason right (to buy mom nice shts she wouldnt get herself.)
Just do the opposite of what she does with 10x the money.
"Alpha"
winner.
This is exactly the kind of middle-class thinking that prompted my interest in finance - to do the exact opposite of my parents. At least your mom didn't lose her whole and only inheritance of 200K(sole retirement money) like mine did.
so....i hope she didnt try double down today
cramer is the kind of wandering swindler who would have been tracked down and beaten within an inch of his life, in another time and place
I was wrong...thought it would close at $29 day it broke $38....closed at $34 today, likely because people were in a buying mood. I still think it hits high 20s....
mommy was right. bought at $38, the stock now trades at $116.
Right for the wrong reasons
Looks like your mum should be your financial advisor kiddo
update: my mom sold it at $98 / share ("didnt want to get greedy"), made $900 on 30 shares
This definitely turned out better than it could have...
You need to ban your mom from watching Cramer ever again.
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