Facebook governance a concern for California pension fund

Comments (13)
majkmushrm wrote:

So don’t buy the stock.

Feb 06, 2012 8:22pm EST  --  Report as abuse
libertadormg wrote:

It’s good to be king.

Feb 06, 2012 8:56pm EST  --  Report as abuse
WeWereWallSt wrote:

“‘With a person that owns as much of the stock and the way he has set up the governance … it will be very hard to influence him except if he’s got some kind of a conscience,’” Hester-Amey said.”

We guess she hasn’t seen the movie, let alone read the Harvard Crimson.

Good luck with the letter.

Feb 06, 2012 8:58pm EST  --  Report as abuse
jrg wrote:

It is really smart to buy a company when it is overpriced and reached its peak. I am certainly glad I am not a retired CA teacher.

Feb 06, 2012 10:18pm EST  --  Report as abuse
LenicGB wrote:

I can see why Mr. Zuckerberg didn’t want to go public. Parasites like CalSTRS wanna start calling the shots. No way shooter, no good! It’s his company, he makes the rules!

Feb 06, 2012 11:08pm EST  --  Report as abuse
Dave1968 wrote:

I agree with jrg a pension fund buying into facebook is the height of foolishness- why peoples head don’t roll for that idea is beyond me.

Feb 07, 2012 7:17am EST  --  Report as abuse
jaham wrote:

Exactly majkmushrm…don’t buy the stock then.

Is this the same California pension fund that earned 5% less than what is needed to meet their pension liabilities in 2011 – I’m afraid so.

There is nothing quite like getting investment/financial advice from one of the world’s largest insolvent pensions.

Feb 07, 2012 9:54am EST  --  Report as abuse
John2244 wrote:

Facebook is a great business model; its growth and users are nothing short of amazing. However it has many risks that are also its strongest points; code culture, lack of red tape, visionary, connected, smart, etc, etc.

But its biggest weakness is governance. If Mark Z. gets upset about some philosophical issue that will impact sales he’ll do what his emotion will do. You could almost imagine him sacrificing revenue to make a point. Right now in high growth everything is aligned but when Google + and other come nipping on their heels – one mans emotion will override 1000000′s of years worth of management experience. Its a huge risk. If you can get a bit of Facebook great, but you are not buying into a proper company led by a visionary like Apple – you are buying into the visionary.

Feb 07, 2012 1:36pm EST  --  Report as abuse
tmc wrote:

Boards and stockholders certainly do not have a conscious, so it is probably better that Mark keep control. FaceBook has so much information that corporate weenies will want to exploit…

Feb 07, 2012 1:54pm EST  --  Report as abuse
xyz2055 wrote:

LenicGB..no way scooter. Once you open up the company by selling it off in the form of stock it is owned by the shareholders. It is no longer Zuckerberg’s possession.

Folks, anyone who buys this stock is a fool. The big boys will be flipping this puppy big time and happily taking the short term gains. Facebook is a FAD! This isn’t a 100 year company. This thing is going to go bye bye in like the next 5 years to a shell of what it is today.

John2244..what sales? You mean the advertising dollars that Facebook attracts because of the current number of people using facebook. They do not have a physical product to sell. This whole thing could go up like a popcorn fart in about 30 seconds. When the next big thing comes along.

Feb 07, 2012 5:21pm EST  --  Report as abuse
FreedomFeen wrote:

Facebook will ignore the teachers’ unions, and rightfully so. In response, teachers will ban Facebook from schools, and/or make it the law that you give your Facebook password to your school.

Feb 07, 2012 6:43pm EST  --  Report as abuse
jrg wrote:

Exactly what xyz2055 said. Dave1968, Thanks for the concur.

FB is most likely being cashed out. If it was that great of an investment, i.e. generating cash flow, why the IPO? (Disclaimer, I have not looked at the company. Nor will I, for the most part tech and finance are shell companies, as xyz2055 said.) It’s a down econ cycle. Is there that much advertising money out there that they need to do some dramatic innovation to expand and capture the extra advertising dollars?

Online social networking is most probably saturated. The moms with kids market segment is probably declining with the econ and the rest of us know how and have time to actually catch up with friends.

In closing my rant, before you throw any money into a 401k index fund, read Ben Graham’s Intelligent Investor. Get the hardback on Amazon for less than $20, because you will most likely keep this book. Yeah, it’s an old copy, but it still works. Also, Warren provides some good insights why large cap funds really bite, from a financial analyst / investor perspective.

Rising tides and fair winds…

Feb 07, 2012 11:09pm EST  --  Report as abuse
esco wrote:

You have a choice to invest or not if the owner refuses to give you more than a few crumbs… I think they’re missing the point of capitalism

Feb 07, 2012 11:18pm EST  --  Report as abuse
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