Buffett Declares Social Media Valuations Overpriced [REPORT]

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Speaking in New Delhi, Buffett, chairman and CEO of Berkshire Hathaway, said that most social networking websites “will be overpriced,” adding that “it’s extremely difficult to value social networking site companies. Some will be winners, which will make up for the rest," according to the report.

Buffett’s comments come as social media companies, including LinkedIn, Groupon and Facebook prepare IPOs for this year and next. The valuations for the companies -- particularly Facebook’s, which has run as high as $65 billion -- has spurred talk of a dot-com-like bubble in social media, though not everyone agrees.

Buffett, one of the most successful investors of all time, has always steered clear of tech stocks, even Apple, which he recently said he avoids because the business is too unpredictable.