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Main > Archives > 2006 > March > Google Stock Value Worthless?

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.

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

joe: dividends

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

joe: lol
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.

By Jason Dowdell at 03:42 PM | Comments (0)

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