Buffett: Beware 'Overpriced' Social Networking Sites

Oracle of Omaha will stick to his usual investments, thank you
By John Johnson,  Newser Staff
Posted Mar 25, 2011 3:37 PM CDT
Warren Buffett Warns Against 'Overpriced' Social Networking Sites
Billionaire investor Warren Buffett gestures at a press conference in New Delhi, India, Thursday.   (AP Photo/ Mustafa Quraishi)

Warren Buffett says he's just itching to make another big deal for his beloved Berkshire Hathaway, but you won't catch him frothing over the slew of initial public offerings expected in the tech world, reports Bloomberg. “Most of them will be overpriced,” said Buffett. "It’s extremely difficult to value social-networking-site companies. Some will be huge winners, which will make up for the rest."

Buffett didn't name specific companies, but as the Daily Intel blog at New York notes, "Facebook was recently valued at $65 billion on the secondary market, Twitter at $5 billion, and Groupon is rumored to try to go public with a bigger valuation than Google did." Click here for more or here to read about fears of a new tech bubble. (More Warren Buffett stories.)

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