Maybe I Should Invest in Facebook, Although…

My record buying individual stocks was fantastic, until I picked disasters. When their price soared, I was happy. When their price plunged, I was miserable. To soothe my frustrations, I sold miserable ones at their lows. One was Apple, selling at $560 on June 1, 2012.
Investing for me is more emotionally satisfying and financially rewarding with index funds. They hold the securities in a market benchmark such as the Russell Large Cap (I like its name, but don’t own it), earning the long-term market return of seven percent. Index investing takes discipline, but helps avoid disasters like defunct Washington Mutual stock I thought was a winner, although at one time I knew Apple was a winner, so maybe it’s Facebook’s time.
Investing in individual stocks requires research and planning. I think about our retirement, college education for grandchildren, medical emergencies, emergency repairs, although at this point, maybe I could dabble in Facebook.
Retirement income is steady. For eleven years we’ve received deposits from Social Security, my public pension and Karen’s pension, although reports I’ve received and believed indicate each plan is underfunded.
Underfunding shouldn’t be a problem. Our savings and investments pay regular Interest and dividends, although with savings interest close to zero, food and gas prices rising, stock prices rising and falling, my good and bad moods are warring. Investing in Facebook might lead to a bonanza, although its price has steadily dropped since the initial public offering.
My health costs are manageable. Medicare and my supplemental insurance cover major medical costs, although Medicare is underfunded, costs are rising, taxes probably rising, and benefits probably falling. Increasing my reserves to healthier levels would be wise, although maybe I could squeeze in some Facebook.
My potential repair costs are minimal. Our condo fees include maintenance costs, although our HOA just levied a special assessment for maintenance. We won’t move, although falling condo sales prices erode our equity. Our five- and six-year-old cars run well, although we seem to have more warning lights on our dashboards. Maybe I shouldn’t invest in Facebook, although we could always delay buying new cars.
Facebook is sellilng at a discount. The IPO price was around $39, went to $45 and on June 1 was only $27.60. I would save $11 compared to those buyers. Waiting was smart,      investing now may be smarter. Those original investors who sold their shares at the opening may jump back in and boost the stock price, although they may dump their remaining shares restricted from sale for six months and drive the price even lower,
Given my rigorous analysis, maybe we should buy Facebook. We’d participate in the moral media bringing democracy to people yearning for freedom and creating worldwide communities sharing the joys and sorrows of life. We’d join a source creating worldwide value, although warnings about lower revenue projections just prior to the IPO indicate management has not proven the company can create stock market value.
I need to be able to take risks at the right time and this feels like the right time, although Europe is in crisis over the Euro, China’s growth is unsustainable and may be inflated into a bubble, the world’s economies are struggling, the latest US jobs report was disappointing, and Google Plus is drawing users away from Facebook.
Google’s stock is about $570 after opening at $100 in 2004. I missed buying that stock. Investing in Facebook would support family members who publish Facebook pages.
We could buy one share, although a round lot of 100 shares has more potential. That’s a lot of money, even more than our condo assessment, although another assessment won’t happen for years. Besides that was for repairs, this is for investment. And if the price goes to $570, we’d have $57,000 for our reserves.
Karen edited this analysis/paralysis saying she liked the article, although emphatically scribbling a note about Facebook stock: “Don’t do It!!”
I know she’s a winner and I’ll follow that winning advice.

About Russellsclearskies

Writing to poke fun at a retired klutz like me who's curiously exploring the absurdities and complexities of the good life. .
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