Tuesday, March 14, 2006
Google Stock Value Worthless?The following is an excerpt of an IM conversation between me and someone else a few minutes ago. He was asking me about whether or not I had seen an article about how you don't get voting rights or dividends when you own Google stock. I thought it was pretty funny so I decided to post it for your enjoyment.
So for those of you that want to own Google stock, my advice is to not purchase if you are counting on it for retirement in the next 5 years... you'll not get that comfy feeling of having a "say-so" in what happens to your retirement.
joe: so someone posted an article on digg last week about google stock, you don't get voting rights with it, and they'll never pay a dividend
jason: dividend isn't surprising, the voting rights stem from Sergei's and Larry's motto that they control the company, no matter how much the stock market wants to
joe: but it seems there is absolutely no value in owning the stock
jason: if it appreciates then there is value to it
joe: but there is no intrinsic value to it
jason: is there ever really any "intrinsic value" to stock? I buy stock so it will appreciate, not so I can vote
jason: nah, overrated
joe: i mean the book value is p/e of 20, well old poeple want the income rather than the potential for value appreciation
jason: google is not an old person stock
By Jason Dowdell at 03:42 PM | Comments (0)