Prof. Aswath Damodaran on mutual funds investing in Twitter
October 18, 2013
Excerpt from The Wall Street Journal -- "New York University professor and valuation expert Aswath Damodaran says that it doesn't make sense that a fund firm would keep Twitter's price constant throughout 2012, even as prices of other social-media companies changed sharply. 'What it effectively means is that the old investors of the fund are going to lose money to the people who are able to buy the fund now at a depressed price,' Mr. Damodaran says. 'It's not fair to existing shareholders if others can exploit dated pricing.'"