According to the Wall Street Journal, 21 of Fidelity’s Mutual Funds dumped nearly two million Facebook shares in June, less than two months after this “IPO (Initial Public Offering) of the Century” went public. Over that brief period of time, this wildly anticipated and super-hyped stock plummeted to almost half of its original price.
Do we own, or did we own Facebook shares in any of our investment portfolios? The answer is a resounding NO! As with any new public offering, Facebook does not meet the screening criteria of Dimensional Fund Advisors (DFA), the primary investment company we use in the development of our portfolios. To put it simply, at this stage of its corporate life, Facebook is just too risky for too many of our clients.
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