Ask HN: Is it a good idea to invest my lifesaving in facebook shares?

12 points

15 years ago

I am 25, and over the past couple[more like 6-8 years] of years have accumulated a net worth north of 450k in liquid cash. I do not have much knowledge of the stock markets besides what the average joe knows. Over the next couple of years I am looking to take it easy, quit my consulting job, and work on some stuff on my own, and with that in mind I wanted to maximize my return on my savings. I have/had been too consumed in my job to learn about the workings of the stock markets, and as such I do not want to be a stock whiz kid.

I have been considering buying facebook shares on second market for a couple of months now, and the prices are now around 25-30 range for a min of 10k shares, and though some mild research suggests that big names are not investing at these prices as they seem too inflated [I think there was an article on HN regarding the same]. Plus there is all this talk of a bubble, so I guess I am curious to know whether any of you would buy facebook stock at this stage, or if you have in the past, and/or does this sound like a smart/foolish idea.

This would be a sizable portion of my savings from the past decade of my life. I do not have any other assets like houses, etc, and after this, I would have around 100k left over to live for a couple of years/ till the IPO? My burn rate for living is pretty low. I stay with my girlfriend who has a considerable annual income, and as such our expenses aren't all that much. I still need to convince her, but I just wanted to get your feedback/advice/suggestion.

Thanks.

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15 comments