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Prem Watsa Comments on Tesla Motors, Fiat, Amazon, and Facebook
Posted by: Grass Hopper (IP Logged)
Date: March 9, 2014 07:39AM

As discussed earlier, the high tech stocks were soaring – particularly those with no earnings and very little revenue. Tesla Motors, for example, sold 22,477 cars in 2013 but commands a market cap of $31 billion, while Fiat, which we like, sold 4.4 million cars but has a market cap of only $14 billion. Amazon has a market cap of $167 billion but has not earned more than $1.2 billion in any one year since it went public in 1999. Facebook has recently made a $19 billion offer for WhatsApp – a company with approximately 50 employees and $20 million in revenue. This is the poster child for the excesses that prevail in the tech world!

From Fairfax Financial 2013 Chairman’s Letters to Shareholders

Stocks Discussed: TSLA, FIATY, AMZN, FB, FRFHF,
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Re Prem Watsa Comments on Tesla Motors Fiat Amazon and Facebook
Posted by: morgan palmer (IP Logged)
Date: March 10, 2014 02:56AM

I don´t know the revenues of Whatsapp, $20 million in revenue, good for 50 employees, but no sense to pay $19billion for this company, incredible excesses, Facebook revenue 2013, $7,8billion, Net Income $1,49billion, Market Cap $177,97billion, 100 times the benefit.

But I can remember that the operation is to pay with facebook shares, paper for paper.

Have no sense to pay this amount for a business with only $20 million in revenue, but If I can pay with paper...


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