Tom Gardner: I'm Not Scared by This Multiple

Brendan Byrnes: I think one of the things that scares a lot of people about LinkedIn is they look and they see that multiple, and it just scares people to death, up over 600 price-to-earnings. It doesn't bother you at all?

Tom Gardner: It doesn't bother me, because the reason, typically, that you get an earnings multiple above 600 is if the company's earnings are extremely low at that point in time.

If you can imagine a business that is reinvesting in itself and has very marginal earnings right now, but has a lot of asset development in that business, a lot of intangible asset value and reputation growing and audience growing, with a business model that works because they're reinvesting in their business, I think that's a very promising thing.

I love that people think the stock is overvalued, because that scares them out, and in an auction market I want fewer buyers of the merchandise that I want in my portfolio, so I'm excited about LinkedIn.

I don't think LinkedIn is going to be an unbelievable 20-bagger, but I think if you're looking for market-beating results, 15% a year over the next five-plus years, LinkedIn is in my personal portfolio and in the Everlasting Portfolio at Motley Fool One, and I'm excited about it, long term.

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