vendredi 26 juillet 2019

Google's latest results

The problem with businesses is that they are living beings. They eventually die. Almost all of them.

So, even if some businesses are extremely solid at one time, they eventually grow old, get cancer and die. 
I mean, I really like some stocks, but most of them ride a wave. They benefit from a certain fad which will fade. 

Google is in another dimension to me. OK, Google probably won't last forever, but among all my portfolio, it's probably the stock for which survival won't be a issue for a long time.

When I read, a few years ago, that Google build their servers close to dams, I realized that it was one of the strongest barriers to entry. Who could, overnight, start a company that will have sufficient funds to reach that level?

Their last results were out yesterday. What about a 20% growth for a 870 billion dollars company? Isn't it incredible? And don't forget that Google is the center of our world when it comes to Internet. It's a reflex. It's a no-brainer. You go on the Internet? You use Google. 

These results would be very good for a small cap. How could we qualify them for a giga cap? 

"Excellent" would be the weakest word we could think of.

3 commentaires:

  1. There is an interesting new trade war. France has a new law. La France will impose a DIGITAL TAX on the biggest tech companies that operate online. To make things more interesting, they will be taxing 3% of Revenue (instead of taxing earnings). This law will mostly be taking money from American tech giants like Amazon, Facebook and Google.
    Trump did not hesitate to get on twitter and tell the world he will be placing tariffs on french wine to retaliate. Here's the story on Reuters:

  2. Been owning Alphabet for several years now.

    Youtube changed my life in many ways. It taught me millions of stuff and I wonder if Youtube existed when I was growing up, I would have been much better on many of my hobbies or completely changed my career.

    People can't live without many of its products.
    The people who run the business are much smarter than me so they know how to deploy its cashflow.
    On top of that it is still growing at 20+% per year...
    Easy investing decision for sure.

  3. Long time companies have gone to shit because they sat on their asses not thinking they could be disrupted by new technologies and paradigms. I believe Google and some other companies will always be aware of this and be proactive about it.