Google's prospects

At the time of IPO of Google (GOOG or GOOGL), my wife asked me if we should buy some Google shares. I said no as I thought it would be too expensive at IPO. Indeed it was kind of expensive with the P/E at about 30 times or something like that. I have never bought or traded any Google shares only until very recently. I can tell you I have kept kicking myself all the time for this stupid decision of mine. Google has never looked back since its IPO and has almost always beaten the estimates on its earnings.

Don’t get me wrong that I suggest to simply buy IPOs. I don’t since there is usually a lot of euphoria around IPOs and the prices are generally very expensive. But after seeing the great performance of Google with one after another top-notch earnings, I should have used any weakness to at least get some Google shares in the past few years. I must say I have significantly underestimated the Google’s ability to generate money. This is a very unique company with full of innovations and I don’t see any limit with it. While its core business is still advertisement associated with its search engine, it is a heavy-weight player in the mobile business and other high-tech areas: Google glasses, automatic car, smart lens…….you name it! I really think everyone should have something in Google. Using Dollar Cost Averaging to buy a small portion initially and adding more at its weakness is a good strategy to establish your position for Google.