High-Priced Stocks: I’ll take one, please.
For a long time now, I’ve been saying I should buy Google stock. Have you noticed this company is taking over the world—blogging, e-mail, searching, Earth, maps, on and on—and, personally, I use it every day. It’s cool, I think, when you can invest your dollars into a company you believe in and profit from.
The only thing stopping me, of course, is that Google (GOOG) currently runs for $506.72 a share. Ouch.
Jim Cramer, on last night’s special Family MAD Money show, actually recommended going for it with stocks like these. He prefers buying one share of an expensive stock over using options or other complicated systems.
So here’s what I’m thinking: I have $600 coming my way next week, as payment for a magazine article I wrote, and I was already planning to invest it. Maybe I’ll buy one GOOG and see what happens. The way I look at it, whatever it does or doesn’t make is money I earned over my regular income: it’s money from a fun article I actually had to write for a class anyway.
Anyone have experience with this? Opinions on high-priced stock picks? Do tell.
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4 Responses to “High-Priced Stocks: I’ll take one, please.”
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Ohh I can’t wait to hear the responses, because I’ve been wanting to buy Google stock for a while now too … but that price tag has always kept me away!
yea the price maybe high, but I bet people that saw shares of Berkshire Hathaway at $500 were hesitant to invest. Look at the stock price of the company now, class A shares are going for over $109,000. I’m not saying Google will grow to that price, but don’t be scared of the price. As long as it’s not all of your money that you have going to buy a share.
Google is the largest media company in the world already and they already have a market cap of $157 Billion. The larger the company is the slower it grows. Just a reminder, don’t expect the growth that you have seen since the IPO, but It still has room to grow just not double in the next year or two.
In the end, I would buy one share for the fun of it!
Well, that’s encouraging. Here’s hoping Google really does take over the world, huh?
Thanks for the tips, Jonathan!
First off, I am not qualified in giving any investing advice. That said, I think Jonathan makes a very valid point that the stock is likely not going to increase as fast in the future as it did in the past, since the company is quite big already. My personal philosophy is to invest through index funds/ETF’s for now and if I ever get good at investing then get into picking individual stocks. I have been putting aside a little at a time in an online account and now have enough to meet the minimum requirements of some of the funds I have been eyeing… Haven’t pulled the trigger yet, though
Second, on a slightly different note, about the statement “…whatever it does or doesn’t make is money I earned over my regular income:..”, I would recommend reading the book “Why smart people make big money mistakes” by Gary Belsky and Thomas Gilovich. I don’t read a whole lot of finance books, but I really enjoyed this one! They have a whole chapter on the attitude to classify money as “what can be risked” and “what should be saved” and how it can effect a person’s financial well being in the long run… I will try to write a detailed post about it soon…