Most Social Networks 'Overpriced': Warren Buffett

Multi-billionaire investor Warren Buffett has called most of the valuations social networks today have received “overpriced” and investors should be wary of them, reports Bloomberg. “Most of them will be overpriced,” the Berkshire Hathaway chairman and CEO was quoted as saying. “It's extremely difficult to value social networking site companies.” Buffett didn't specify names, but added “some will be huge winners, which will make up for the rest”. Buffett's comments come at a time when social networking sites like Facebook and Twitter are receiving investments in the tens of billions of dollars, skyrocketing their value. Similarly, IAC founder and chairman Barry Diller told CNN in an interview last week he felt these valuations are “mathematically insane”. Via DesignTAXI News.

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