Today I bought Google.
Yeah! I’m a Google fanboy since ever. For me, Google isn’t a normal company. Is a GREAT company.
“Google is not a conventional company. We do not intend to become one.”
Original Letter from Google’s founders, 11 years ago.
I know, I know… tons of analysts saying “Google is expensive”.
Yeah, everybody knows…
BUT, I believe in their creativity, in their vision about future.
You can see some Google data here: https://www.morningstar.com/stocks/XNAS/GOOGL/quote.html
First of all: Google didn’t pay any dividends. Point to Google.
Second: Google is a global company. Yeah, we know Google don’t operate in China.
Third: We can’t evaluate a tech stock like Google using glasses to see it like an industrial company in the 40’s as Ben Graham wrote. Why? Because Google is a very complex operation between countries, devices, governments, and whatsoever.
Fourth: Buying Google you are putting your investments in the Silicon Valley’s heart.
Let’s just see some financials:
Check the FREE CASH FLOW (last line)… I think this is the best data (for me).
P/E = 30
PB = 4.2 (expensive?)
Not for me.
If you buy a US Treasure Bond 30y you will pay a P / E = 70.
This is twice expensive than Google.
I saw Google growing up all these years and I decided to join the party.
So, WHY I bought Google?
Google isn’t just a company, Google is a piece of your mind.
Everybody uses google ALL DAYS, ALL DAY.
It remembers me Buffet.
Buffet it’s the man. Buffet told that he don’t buy a company, he buys a piece of your mind, like Coke, American Express, Apple or Wells Fargo.
Do you remember all Google companies and services, don’t you? Let’s remember Google’s Timeline:
I could say that Google lacks presentations. You should know why. Also, Google has revenues in a lot of countries.
But, I bought just 4 stocks at U$839 each. It’s just to put my boots on the water.
In my retirement plan, I imagine that Google will fit pretty important from here to 20 years.
That’s it folks,