Did Buffett know what could happen today? Meta is going through a tough time in its core business Facebook, struggling to keep growing its user base and also struggling to keep up the speed of revenue growth. The company lost in less than a day 230,000 million dollars in capitalization after evidencing this reality in the fourth quarter report. However, it is still one of the mega-cap companies with $898.51 billion as of today.
For the market expert, the company led by Mark Zuckerberg, although it is “the business of dreams”, as it does not require little capital to grow a lot, had an uncertain future, so both he and his partner, Charlie Munger, have agreed not to invest in Facebook.
Buffett’s premise is based on how difficult it can be to value “exceptional” companies like Meta. And from In 2012, he assured that he did not invest in the company because he could not foresee how it would do in five or ten years (that is, now).
“It is much easier for me to find out how much Coca-Cola is worth than Facebook or Google. I am not saying that they do not have a bright future, but it is something that I can know,” Buffett indicated a few years ago, according to an Insider report.
For now, Zuckerberg’s bet is to capitalize on the global size in terms of user reach that Facebook built over the years in what he believes will be a new technological revolution: el Metaverse.
Will Buffett be encouraged to invest in the Metaverse? The odds seem to be that for now he wouldn’t.
Source: Ambito
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