2 Reasons Instagram Monetization Is a Win for Facebook Investors

Instagram just inked a major deal, which holds broader implications for Facebook investors everywhere.

Mar 16, 2014 at 8:15AM

It's funny to think back to when Facebook's (NASDAQ:FB) 2012 buyout of photo sharing app Instagram shocked the investing world with its $715 million price tag.

Today, in light of Facebook's recent agreement to buy messaging start-up WhatsApp for a jaw dropping $19 billion, Facebook's Instagram buyout looks like chump change. However, one recent positive move at Instagram might also serve as a broader example of the merits to Facebook's M&A strategy then and now.

Monetization mania at Instagram
Facebook's management, especially founder and CEO Mark Zuckerberg, historically have had a slightly begrudging attitude toward monetization, which makes the ultimate return on its billion-dollar buyouts all the more unclear.

However, slowly but surely, Instagram appears to be making meaningful progress on toward raking in the big bucks as well. It recently signed a deal with global advertising powerhouse Omnicom that's worth $100 million over the next year. More broadly, this appears to be part of a broader, intelligent push to create shareholder value at Instagram as well.

In the following video, tech and telecom analyst Andrew Tonner looks at the Instagram news and the implications it could hold for Facebook investors more broadly.

Investing in more game-changing growth stocks like Facebook
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Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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