This Famous Value Investor Is Selling Facebook Shares

Famed NYU professor and valuation theorist Aswath Damodaran has confirmed he will be selling his Facebook (NASDAQ: FB  ) position in the near future. In his mind, shares have surpassed their intrinsic value of $27.65, and since Facebook is a growth company, there is little reason to hold on to shares. He grounds his view in his experience that investors tend to overreact to a growth company's results, and right now, he believes investors are reacting too positively to Facebook's recent quarterly results.

However, Fool contributor Steve Heller believes that if you're truly a growth investor, it may not be wise to follow Damodaran's logic. Check out the following video to get the full story.

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  • Report this Comment On August 10, 2013, at 1:23 PM, DukeBradford wrote:

    invest in beat up stocks...not beat up companies. Facebook stock has shot up 40%. Take profits and move on....

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