LinkedIn Corp (LNKD): When Value Investing Fails

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We have to face the fact that there’s just no excellent way to find the fair value of the shares of fast growing companies like LinkedIn Corp (NYSE:LNKD). Investors brave enough to put their money in these stocks should do so only with a very strong conviction of the company’s competitive advantage and its addressable market. A plan to hold for a very long time is essential because the astronomic valuations pinned to stocks like these will most likely be accompanied by very volatile price swings.

Typical value investing methods may not always work. Even when they don’t, there’s no reason to turn a cold shoulder on a stock. Instead, change your approach and tread carefully.

The article When Value Investing Fails originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com, Apple, Facebook, Google, and LinkedIn.

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