An investor/observer doesn't have to solve a company's problems, or even know all the details of its operations. A company is an abstraction. You can evaluate it based on its team, and its market power/sustainable-advantage. Indeed, we should expect the company management understands many things we outsiders do not – or else they're in the wrong jobs.
With Facebook's attentional domination and network-effects, even idiots would be able to build a $20-30B business. Facebook's management are not idiots. They understand the giant success drivers of Google and others in the network era, as well as the risks from upstarts and changing tastes.
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An investor/observer doesn't have to solve a company's problems, or even know all the details of its operations. A company is an abstraction. You can evaluate it based on its team, and its market power/sustainable-advantage. Indeed, we should expect the company management understands many things we outsiders do not – or else they're in the wrong jobs.
With Facebook's attentional domination and network-effects, even idiots would be able to build a $20-30B business. Facebook's management are not idiots. They understand the giant success drivers of Google and others in the network era, as well as the risks from upstarts and changing tastes.