If you had to guess, what percentage of investors in Google right now are "smart money" (vs. dumb money)? I’m intrigued by corporate statements that seem to be driving recent changes in GOOG share price:
- "Clearly our growth rates are slowing…" CFO Reyes, 2/28/06: closes down 6.8%
- "I’ll leave it as an exercise to you as to whether Google means $100 billion in revenue or valuation.” CEO Schmidt, 3/2/06: closes up 3.2%
This isn’t guidance – no EPS estimates or financial results from product lines – just talk. Do you think smart investors heard these statements and went back to their valuation models, coming up with new targets and changing their positions?
What struck me was a side link on the SJC Mercury News article – a pdf of the Google "owners manual." Clearly modeled after the Berkshire Hathaway owners manual. But the differences between the two – diversification of BRK vs GOOG in particular – are night and day. Their websites are both simple, yet on opposite again: brochureware vs. one of the most powerful tools in the universe.
Disclosure: I do not own any BRKA or hold a direct position in Google. Don’t consider anything you read here as financial advice – even if you have some dumb money burning a hole in your pocket. This post is provided for informational purposes only and does not constitute
an offer to sell or a solicitation to buy any security or other