The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

05 February 2007

Splinter skills

It seems -- well, in fact, has becomes obvious -- that most investors now stumble about in a stupor with re to Google/GOOG. "What is wrong with the stock?" they wonder. "That last quarter was a blowout, beyond expectations, and yet the stock goes down!"

Fortunately, 'those investors' does not include this site's readers; amply warned that the shares were headed for $450 - $425. (The stock is down ~$10 to ~$471.50 as I write this post.)

And while the stock does its thing, the company does its specialty. Note, for example, this insight from Henry Blodget, "...the peak quarters for CAPEX appear to be behind us... should lead to a major acceleration in FCF growth for 2007." And then there is this speculation by Robert Cringely, "I think Google is building for a future they see but most of the rest of us don't... Google intends to take over most of the functions of existing fixed networks in our lives, notably telephone and cable television."

Only the fullness of time will prove correct Cringely's and Blodget's speculations; meanwhile, the company continues to accrete value -- despite the omni-present oscillations of its stock.

It is ever thus.
-- David M Gordon / The Deipnosophist


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