We’ve primed you on what qualitative and quantitative factors to consider when looking for companies with economic moats. We’ve also talk about two companies (Apple & Blackrock) with moats and how they’re amassing wealth at such a rapid pace that leaves all other companies in the dust (and some bankrupt). I’m starting this series of articles to help and initiate you to look for wonderful companies, and you decide when it’s a fair price to invest.

Now the search begins with the elephant in the room: Facebook.

The social media industry

This is a relatively new industry, and with all things new, its growth has been meteoric, and so has the asset prices and euphoria surrounding it. The dot-com bust of 2000 has given the markets a healthy dose of skepticism with people crying “Bubble!” during the string of social media IPOs years ago.

The social media ...