Mohamed A. El-Erian: A Different Take on Facebook (CNBC)

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May 21, 2012
Behavioral finance specialists will have a field day with the Facebook IPO[b] [/b]as it speaks volumes to an issue that differentiates them from those that espouse the efficient market hypothesis.- namely, that investors can be vulnerable to mistakes dictated by unconscious biases.

Or, put another way, the manner that our brains have evolved and work may not always result in the best investment decisions. And the implications could go beyond this.

Facebook [FB 34.03 watchlist_down.gif -4.2018 (-10.99%) realtime_icon.gif] was one of the most hyped IPOs in history, and understandably so. The company has over 900 million users around the world, is a leader and a major disrupter and, as such, continues to redefine not only social networking but also a growing number of people's interactions with the internet and with their mobile tools.

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