Gil Morales and Chris Kacher

Thursday’s Initial Public Offering of social media firm LinkedIn, Corp. (LNKD) provided the financial media and investors with a lot of hype and excitement in what has been an otherwise choppy and non-descript general market environment.

As we watched LNKD’s share price convulse on Thursday as the opposing forces of greed and fear pushed the stock back and forth, as we can see on the 15-minute interval intra-day candlestick chart of LNKD, below, it became clear that trying to buy the stock within a day or two of its over-hyped IPO amounted to little more than throwing darts at a rapidly moving target.

If you were lucky enough to get shares on the IPO at $45 each, then you probably felt very “linked-in” to the profit side of the LNKD mania on Thursday.

However, if you were one of the unlucky dart-throwers who bought shares on Thursday at $120, right now you are feeling quite “sucked-in” to LinkedIn and may not share the expression of ebullience that most commentators are trying to paint on the faces of LNKD shareholders currently.

In our view, investors are better off leaving the hype and ebullience to others as they simply let the market sort things out for them in the near-term.


Gil Morales and Chris Kacher

Gil Morales and Chris Karcher are co-founders of the Virtue of Selfish Investing.