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My rule of thumb is to invest in companies that make products that many people use. Look around you, how many people use FB?

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It's imprudent to decouple popularity from price. Would you invest in Facebook a $200b valuation? $500b? Popularity is already priced in by the market.

To invest, you need to have a fundamental belief about the long term prospects of the company above that of the market. I think better answers would be "I think Facebook is a $150b company, so yes" or "I am 50% more bullish on Facebook than the market" or "I think I will be able to sell to people in the future who will be 50% more bullish on Facebook at that time."

If anyone just blindly put money into a company, they're just as well flip a coin. One has to do due diligent and weight the risk versus reward. And even after putting money into a company, one must constantly evaluate its performance. Using popularity to narrow down the prospective targets is just the first step.

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