NEW YORK ( TheStreet) -- I did something Wednesday that I didn't think I was ever going to be able to do. Not only did I establish a position in social media giant Facebook ( FB), but I did so while feeling good about the decision.As a value investor, trying to convince myself that the company was worth the investment came as quite a challenge. I'm not entirely convinced of the overall value of social media. Be that as it may, I do understand that on Wall Street everybody takes a beating once in a while, and this time it was Facebook's turn.
|Facebook shares hitting $25 could be a buy signal for wise investors.|
I've always said that if you are not in a state of perpetual worry in the stock market, you are not paying attention. Facebook had me nervous from the beginning. The fact of the matter is, it was just too good to be true and affirmed what Buffett has long warned: that investors should be fearful when others are greedy. My risk in buying at this level has more to do with the hysteria that dominated the IPO being over and more rational thinking starting to factor into the valuation. Since $25 had been my target all along, this was an opportunity I just could not pass up. Interestingly, these were likely the same words many investors were quick to utter at the company's IPO price of $38. I could be wrong, and the stock can very well drop another couple of dollars from this level. At this point, I doubt it. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.