«

»

Oct 19 2013

avatar

Print this Post

Why You Probably Shouldn’t Invest In Google


If you’re considering investing in Google, you would have higher statistical odds of beating this snazzy stock with a randomly selected company off the New York Stock Exchange.

Sound bizarre?  

I explain my rationale for Canadian Business magazine:

 

With stocks, bigger isn’t better

 


bookatel-ban-

About the author

andrew hallam

I'm a freelance finance writer, lucky enough to have been nominated as a finalist for two Canadian National Publishing Awards. I'm also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School, a book explaining how I became a millionaire on a teacher's salary, while still in my 30s. Working to empower people financially, I'm available to motivate and inspire people on basic retirement planning and index investing. I'm happy to comment on your questions, first, please read the Terms of Use.

Permanent link to this article: http://andrewhallam.com/2013/10/why-you-probably-shouldnt-invest-in-google/

7 comments

Skip to comment form

  1. avatar
    Barry

    Hi Andrew

    The link didn’t work for me? Funnily enough…I had to use “Google” to find it ;o)

    The stock surged nearly 14% to end at $1,011.41 a share, well above Google’s previous all-time high of $928 set in July

    As I tell my son, we own part of it anyhow as it’s in my index fund (and his now I’ve purchased Vanguards US fund for him)

    Top 10

    1 Apple Inc.
    2 Exxon Mobil Corp.
    3 Microsoft Corp.
    4 Johnson & Johnson
    5 General Electric Co.
    6 Google Inc.
    7 Chevron Corp.
    8 Wells Fargo & Co.
    9 Berkshire Hathaway Inc.
    10 Procter & Gamble Co

    1. avatar
      Andrew Hallam

      It’s nice to own everything through an index, isn’t it Barry!

      I’ll see what I can do about that link. You’re the second person to say that, yet the link works for me. I’ll try to shorten it.

      Thanks!

      Andrew

    2. avatar
      Andrew Hallam

      Could you do me a favour, Barry, and see if the link now works from your end.

      Thanks!

      Andrew

  2. avatar
    Barry

    All appears fine now Andrew

    PS: Looking forward to updates on your portfolio moves

  3. avatar
    Nicolas

    Hi Andrew

    Thanks for your good work educating people, it really does make a difference.

    I have a quick question re : bonds.

    I own a short term bonds ETF. It’s not moving a lot and that’s how I like it.

    When interest rates start climbing again in Canada (where I reside), can I expect to see my bonds ETF lose value?

    Thanks,

    Nicolas

  4. avatar
    ivan

    Hello Andrew,

    Love you blog and a neat little niche that you are building for yourself.Congrats!

    In this article, you seem to be alluding that fundamental indexing might offer a better indexing option. Where do you stand on that?

    Regards,

    Ivan, Vancouver

    1. avatar
      Andrew Hallam

      Thanks Ivan,

      My thoughts are mixed. I wrote an article extending an analysis between fundamental and cap-weighted indexes here: http://assetbuilder.com/andrew_hallam/can_traditional_index_funds_be_consistently_beaten

      Either way, how we behave with our ETFs will always overshadow which funds will win over time. So many people like following performance winners. When fundamental indexes outperform cap-weighted, many people will jump on them. But many of those same people will jump back into cap-weighted indexes when they outperform. We can’t see the future, but we can control our adherence to a dispassionate strategy.

Leave a Reply

banner
Advertisment ad adsense adlogger