Warren Buffett says ‘he won’t buy Facebook shares’

[1]

American business magnate Warren Buffett has said that he will not be buying shares in the social networking giant Facebook.

Buffett also refuted claims that financial markets are in a second dotcom bubble.

Facebook said this week that it expects to be valued at up to 96 billion dollars when it floats later this month.

That valuation for a company, that made 205million dollars of profits in the first quarter, has prompted some to warn that investors are risking getting carried away with Internet hype just as they did in the late 1990s.

According to The Telegraph, Buffett, however, said ‘financial markets are not in any bubble phase of anything.’

“It is not a bubble... this is not what we were seeing in late 1999 all the way into 2001. We aren''t in any bubble phase of anything,” he told CNBC.

Buffett, 81, the world's third-richest man has historically steered clear of technology companies, saying that he will only invest in companies he can understand.

According to the paper, he broke with that tradition last year when he acquired 10 billion dollars of IBM shares.