Tuesday, May 29, 2012

I would say I'm genuinely torn...

... but I don't think I am.

Chris LeBarton jumped at the chance to get in on Facebook’s initial public offering. The Potomac investor and a group of friends pooled $50,000 to purchase $35 pre-offering shares through a hedge fund connection.
He said he knew it was a gamble, but he never imagined he would get cheated. After Facebook’s stock closed almost break-even its first day of trading and then fell for a few days before recovering modestly, LeBarton and his friends are looking at a paper loss of 6 percent.
“I went into this not even thinking about that possibility,” he said. “The big guys made out, and it seems the little guys got burned.”
When you are doing anything through a "hedge fund connection," you should be a little skeptical. When one has an inner track on something, it is tough to be too upset that your inner track wasn't the innermost.

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