When I was in Santa Monica last week for a Dimensional Funds seminar, I also had a chance to hang for a bit with Rocco Pendola, the social media director of TheStreet.com. He told me a story about a CNN security guard who put $1,000 into Facebook (FB) on its first day of trading.
The context: The media were focusing on the stock’s impressive rally that began on July 25. But Rocco contends (and I agree) that the stories of small individual investors, like the security guard, are more indicative of the euphoria and hype (OK, those are my words, not his) surrounding widely-touted stocks like Facebook. Here’s Rocco’s story: